Investment Rating - The report maintains a "Positive" investment rating for the supernode industry, driven by the explosive growth of model parameters and the shift in computing power demand from single points to system-level integration [3]. Core Insights - The supernode trend is characterized by a dual expansion of high-density single-cabinet and multi-cabinet interconnection, balancing communication protocols and engineering costs [4][5]. - Domestic supernode solutions, represented by Huawei's CloudMatrix 384, achieve a breakthrough in computing power scale, surpassing single-card performance limitations [4][5]. - The industrialization of supernodes will reshape the computing power industry chain, creating investment opportunities in server integration, optical communication, and liquid cooling penetration [4][5][6]. - Current market perceptions underestimate the cost-performance advantages of domestic solutions in inference scenarios and overlook the transformative impact of computing network architecture on the industry chain [4][7]. Summary by Sections 1. Supernode: New Trends in AI Computing Networks - The growth of large model parameters and architectural changes necessitate understanding the two dimensions of computing power expansion: Scale-up and Scale-out [15]. - Scale-up focuses on tightly coupled hardware, while Scale-out emphasizes elastic expansion to support loosely coupled tasks [15][18]. 2. Huawei's Response to Supernode Challenges - Huawei's CloudMatrix 384 represents a domestic paradigm for cross-cabinet supernodes, achieving a computing power scale 1.7 times that of NVIDIA's NVL72 [4][5][6]. - The design of supernodes must balance model training and inference performance with engineering costs, particularly in multi-GPU inference scenarios [69][77]. 3. Impact on the Industry Chain - The industrialization of supernodes will lead to a more refined division of labor across the computing power industry chain, with significant implications for server integration and optical communication [6][4]. - The demand for optical modules driven by Huawei's CloudMatrix is expected to reach a ratio of 1:18 compared to GPU demand [6]. 4. Key Company Valuations - The report suggests focusing on companies involved in optical communication, network devices, data center supply chains, copper connections, and AI chip and server suppliers [5][6].

Group 1: Company Overview - Atour (ATAT.O) is positioned as a lifestyle brand group starting from the mid-to-high-end hotel market, rapidly rising through differentiated positioning and a diverse brand matrix, focusing on balancing experience and efficiency [12][10] - The company has launched a new three-year strategy "China Experience, Two Thousand Good Hotels," entering the era of a thousand stores, with increasing scale and market share compared to domestic mid-to-high-end chain hotels [12][10] - Atour's retail business has become a significant innovation growth driver, creating a unique commercial closed loop that deeply integrates accommodation and retail services [12][10] Group 2: Business Model and Growth Drivers - The company utilizes a unique franchise model for rapid expansion, balancing efficiency and experience through refined operations and differentiated experiences, meeting investor return expectations and consumer demand for quality service [12][10] - Atour's retail business leverages hotel scenarios to create a unique commercial closed loop, innovatively transforming accommodation spaces into retail scenes, thus forming a complete consumer touchpoint matrix [12][10] - The loyalty program, A-Card, has accumulated over 96.7 million registered individual members, enhancing user loyalty through personalized services [12][10] Group 3: Investment Analysis - The investment analysis suggests a target market value of $5.8 billion for Atour, corresponding to a 30% increase from the current market value, based on a relative valuation method with an average industry PE of 26 times for 2025 [12][10] - The report emphasizes the potential for Atour to capture market share in the growing mid-to-high-end hotel sector, supported by its innovative business model and strong brand positioning [12][10] Group 4: Suzhou Bank Overview - Suzhou Bank (002966) has seen its major shareholder, Guofang Group, increase its stake to 15%, becoming the controlling shareholder, with plans to further increase holdings by at least 400 million RMB over the next six months [11][13] - The bank is characterized as a rare high-quality asset with strong regional presence, substantial provisions, and excellent performance, with expectations for improved revenue in the upcoming interim report [16][11] Group 5: Financial Performance and Projections - The bank's net profit is projected to grow at a compound annual growth rate of 7.3% to 8.3% from 2025 to 2027, with a current price-to-book ratio of 0.76 times for 2025 [16][11] - The report highlights the bank's strong asset quality, with a non-performing loan ratio of approximately 0.83% and a high provision coverage ratio of 447% as of Q1 2025, indicating stability and resilience in performance [16][11] Group 6: Industry Trends - The report indicates a positive outlook for the communication industry, with a focus on AI computing networks, satellite communications, and overall industry optimization, suggesting a robust growth trajectory [27][25] - The communication sector is expected to see significant profit growth, with several companies projected to achieve over 50% year-on-year growth in net profit for Q2 2025 [27][25]

Investment Rating - The report maintains a positive outlook on the communication industry, emphasizing three main lines of investment: differentiated AI computing networks, strengthened satellite industry, and optimized economic cycles [4][5]. Core Insights - The communication industry is expected to benefit from the evolution of AI, with a shift towards diversified computing solutions and a notable increase in demand for data centers and related technologies [4][5]. - The satellite communication sector is experiencing significant growth, with a complete industry chain forming and expectations for direct satellite connections to drive demand for antennas, RF chips, and inter-satellite communication [4][5]. - The report identifies several high-quality cyclical stocks with strong growth potential, particularly in sectors like Beidou navigation and controllers, which are expected to see a return to investment "pendulum" dynamics [4][5]. Summary by Sections AI Computing Network - The AI industry is transitioning towards inference-driven models, leading to a diversified computing solution landscape. Domestic chip and module manufacturers are beginning to integrate into the supply chain, with data center supply-demand turning positive and liquid cooling technologies gaining traction [4][5]. Satellite Communication - The second half of 2024 marks a catalyst for the satellite communication industry, with a complete industry chain established. The potential for terminal direct satellite connections is expected to drive growth in antennas, RF chips, and inter-satellite communication [4][5]. Economic Cycle Optimization - The report highlights the importance of downstream economic conditions, identifying cyclical stocks with low valuations and strong growth potential. The investment focus is expected to shift back towards these quality stocks as economic conditions improve [4][5]. Performance Forecasts - The report predicts significant profit growth for key companies in the communication sector for Q2 2025, with expected net profit growth rates exceeding 50% for several companies, including NewEase (233%), Ruikeda (222%), and Aofei Data (59%) [4][5]. Key Companies and Their Prospects - **China Mobile**: Expected to see stable capital expenditure and improved ROE due to optimized revenue-cost dynamics [6]. - **ZTE Corporation**: Anticipated to benefit from the shift towards digitalization and internal profit margin improvements [7]. - **Unicom Technology**: Positioned to gain from AI and high-speed network investments, with profit growth expected [7]. - **HuaCe Navigation**: Focused on multiple business areas with strong performance stability [9]. - **AIoT Companies**: Companies like Lexin Technology and Meige Intelligent are expected to benefit from the AI and robotics trends, with significant growth forecasts [10][11].