Core Viewpoint - The satellite internet sector is poised for significant investment opportunities driven by low Earth orbit (LEO) satellite payloads, ground infrastructure, and ultra-node communication, especially following the MWC Shanghai exhibition [1][2][3] Group 1: LEO Satellite Communication - The next-generation integrated LEO constellation design is nearly mature, with domestic projects like Qianfan, State Grid, Hongyan, and Tianqi starting to form, focusing on a network architecture based on NTN systems [1][2] - The launch of consumer-grade satellite networking is expected in the second half of the year, supported by devices like the MateX6, with initial applications centered around space-based private networks [3] Group 2: Ground Infrastructure - Ground infrastructure will significantly benefit from the initiation of LEO satellite trial operations, including the integration of gateway station projects and upstream components like antennas and core networks [3] - Companies like Shanghai Tower are exploring the transformation of traditional communication bases into distributed ground stations capable of satellite ground station functions, addressing challenges in site selection and construction approval [3] Group 3: Key Players and Investment Targets - Major players in the 5G main equipment sector include Huawei, ZTE, and FiberHome, which will be key suppliers of baseband, routing, and antennas for satellite applications [2] - Recommended investment targets for LEO satellite payloads include Xinke Mobile, FiberHome, ZTE, Tongyu Communication, and others, while ground infrastructure targets include Changjiang Communication and China Tower [5][6]

Investment Rating - The report maintains an investment rating of "Outperform the Market" for the telecommunications industry [1]. Core Insights - The NTN (Non-Terrestrial Network) industry chain is maturing rapidly, with ground infrastructure poised for significant development. The MWC Shanghai 2025 highlighted satellite internet as a key focus, presenting at least three catalysts and investment opportunities for the sector [2][15]. - The next-generation low Earth orbit (LEO) constellation design is nearly mature, with domestic projects like Qianfan, State Grid, Hongyan, and Tianqi starting to form. The NTN architecture is becoming mainstream, benefiting major 5G equipment manufacturers such as Huawei, ZTE, and others [3][16]. - As the trial commercial use of low Earth orbit constellations approaches, ground infrastructure will see accelerated growth. The low Earth satellite communication system in China is expected to enter public testing this year, with consumer-level satellite networking anticipated in the second half of the year [4][17]. Summary by Sections 1. Weekly Viewpoint and Investment Suggestions - The NTN industry is expected to benefit from the upcoming commercial trials of low Earth orbit satellites, with significant opportunities in ground infrastructure and satellite payloads [15][17]. - Key companies to watch include: - Low Earth Satellite Payload: Xinke Mobile, Fenghuo Communication, ZTE, Tongyu Communication, Jingxin Communication, and others [20]. - Low Earth Ground Infrastructure: Changjiang Communication, Zhenyou Technology, Xinke Mobile, China Tower, and others [20]. - Super Node Communication: Zhongji Xuchuang, Xinyi Sheng, Wolong Nuclear Materials, and others [20]. 2. Market Overview - The telecommunications index rose by 1.58% during the week of June 16-20, 2025, while major indices like the Shanghai Composite Index and Shenzhen Component Index saw declines [8][18]. - The top-performing sectors included optical modules (+9.6%), optical cables (+8.2%), and liquid cooling (+3.8%) [8][18]. 3. Company Performance - Notable stock performances included Longfly Fiber (+15.10%), Yuanjie Technology (+12.06%), and others leading in gains, while Zhenyou Technology and others faced significant declines [34][36].