Investment Rating - The report maintains a "Recommended" rating for the telecommunications industry, considering the sustained high prosperity of the sector driven by AI, 5.5G, and satellite communications [2][3]. Core Insights - The overall market performance for the week (September 29 to October 5, 2025) saw the Shanghai Composite Index rise by 0.76%, the Shenzhen Component Index by 0.60%, and the ChiNext Index by 0.07%. However, the telecommunications sector experienced a decline of 3.16% [2][11]. - Among the sub-sectors, the telecommunications cable and supporting industries had the lowest decline at 0.44%, while telecommunications network equipment and devices saw the highest drop at 4.56% [2][14]. - Notable individual stock performances included "Online and Offline" with a rise of 28.78%, followed by *ST Yitong at 9.77% and Sega Technology at 7.67% [2][16]. Summary by Sections Market Overview - The telecommunications sector index declined by 3.16% during the week, contrasting with the overall market's positive performance [11]. - The sub-sector analysis indicated a general downward trend, with telecommunications network equipment and devices facing the steepest decline [14][15]. Key News - The Ministry of Industry and Information Technology granted China Mobile a license for satellite mobile communication services, allowing it to engage in direct satellite communication and enhance service offerings in various applications [2][18]. Focus Areas - The report highlights the computational power supply chain and satellite internet as key areas of interest. AMD's agreement with OpenAI for a GPU supply worth up to $90 billion is expected to significantly impact the hardware market [3][4]. - The acceleration of satellite internet operations in China, with ongoing developments in satellite service licenses, is also emphasized, particularly in the manufacturing and launch segments of the satellite industry [4].

Core Viewpoint - Verizon has appointed Dan Schulman, former CEO of PayPal, as the new CEO, effective immediately, succeeding Hans Vestberg who has been CEO since 2018 [1] Group 1: Leadership Changes - Dan Schulman will take over as CEO, while Hans Vestberg will serve as a special advisor until October 4, 2026, and remain on the board until the 2026 annual shareholder meeting [1] - Mark Bertolini, Chairman of Verizon's Board, expressed confidence in Schulman's leadership abilities, highlighting his experience in transformative leadership and operational excellence [1] Group 2: Market Reaction - Following the announcement, Verizon's stock price increased by 0.5% in pre-market trading [1]

Core Viewpoint - The article discusses the reliability of Wall Street analysts' recommendations, particularly focusing on AT&T (T), and emphasizes the importance of using these recommendations in conjunction with other analytical tools for investment decisions [1][5][10]. Brokerage Recommendations - AT&T has an average brokerage recommendation (ABR) of 1.88, indicating a consensus between Strong Buy and Buy, based on recommendations from 30 brokerage firms [2]. - Out of the 30 recommendations, 16 are classified as Strong Buy and 3 as Buy, representing 53.3% and 10% of total recommendations respectively [2]. Limitations of Brokerage Recommendations - Studies indicate that brokerage recommendations have limited success in guiding investors towards stocks with the highest price increase potential [5]. - Analysts often exhibit a positive bias due to the vested interests of brokerage firms, leading to a disproportionate number of favorable ratings compared to negative ones [6][10]. Comparison with Zacks Rank - The Zacks Rank, which is based on earnings estimate revisions, is presented as a more reliable indicator of near-term stock performance compared to ABR [8][11]. - Zacks Rank is a quantitative model that maintains a balance among its five ranks, while ABR is solely based on brokerage recommendations [9][11]. - The Zacks Rank is updated more frequently, reflecting timely changes in earnings estimates, unlike the potentially outdated ABR [12]. Current Earnings Estimates for AT&T - The Zacks Consensus Estimate for AT&T's current year earnings remains unchanged at $2.05, suggesting stability in analysts' views on the company's earnings prospects [13]. - The Zacks Rank for AT&T is currently 3 (Hold), indicating a cautious approach despite the Buy-equivalent ABR [14].

Group 1: Policy Initiatives - The National Development and Reform Commission (NDRC) is actively promoting a new type of policy financial tool with a scale of 500 billion yuan, aimed at supplementing project capital and accelerating project construction to support economic development [1] - Six departments, including the Ministry of Industry and Information Technology, have launched a work plan for the machinery industry to cultivate high-tech enterprises in key areas such as industrial mother machines and robotics, utilizing existing policy resources [2][6] - The NDRC plans to enhance the application and popularization of new-generation smart terminals and intelligent systems by creating a conducive policy environment and promoting collaborative innovation [3] Group 2: Industry Growth and Performance - In August, the added value of high-tech manufacturing and equipment manufacturing industries grew by 9.3% and 8.1% year-on-year, respectively, outpacing the overall industrial growth rate [9] - The NDRC reported that private enterprises are leading the "Artificial Intelligence +" initiative, with 254,000 new AI software development firms established in the first quarter of this year [5] - Morgan Stanley noted that over 90% of roadshow clients expressed willingness to increase exposure to Chinese assets, indicating a significant shift in foreign investment sentiment [10] Group 3: Market Developments - The Ministry of Industry and Information Technology has issued a satellite mobile communication business license to China Mobile, allowing it to engage in satellite communication services, which will enhance communication capabilities in various sectors [4] - The price of spot gold has surpassed $3,800 per ounce, marking a nearly 45% increase this year, driven by expectations of further monetary easing and rising geopolitical risks [11]

Core Points - Optus experienced a network outage that prevented users from making emergency calls, impacting thousands in New South Wales for over nine hours [1] - This incident follows a previous outage that resulted in four fatalities, highlighting serious implications for public safety [1] - The company is under investigation for the cause of the outage and has confirmed that all callers attempting to reach emergency services were safe [1] Company Issues - Optus faced a fine of $66 million due to selling products to vulnerable consumers who did not need or want them, leading to significant debt for many [1] - The actions of the company were described by a federal court judge as "extremely serious" and "appalling," indicating a severe reputational risk [1] Industry Context - The telecommunications sector in Australia is under scrutiny for service reliability, especially concerning emergency services [1] - The repeated outages raise concerns about the infrastructure and regulatory oversight within the industry [1]

Core Viewpoint - KT Corp. has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Business Improvement Indicators - The increase in earnings estimates for KT Corp. indicates an improvement in the company's underlying business, which is expected to positively influence its stock price [4][9]. - For the fiscal year ending December 2025, KT Corp. is projected to earn $2.80 per share, with a 5.3% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6][8]. - KT Corp.'s upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for near-term price appreciation [9].

Core Viewpoint - The Tokyo stock market experienced a slight increase on September 24, with the Nikkei 225 index rising by 0.30% and the Tokyo Stock Exchange Price Index increasing by 0.23% despite a decline in the New York stock market the previous night [1] Market Performance - The Nikkei index closed up by 136.65 points at 45630.31 points, while the Tokyo Stock Exchange index rose by 7.28 points to close at 3170.45 points [1] - Early trading saw a downward trend in both indices, influenced by the previous night's performance in New York [1] Company Developments - SoftBank Group announced a collaboration with OpenAI and Oracle to establish five new data centers, which positively impacted its stock price and provided support to the overall market [1] Sector Performance - Among the 33 industry sectors on the Tokyo Stock Exchange, there were mixed results, with mining, other products, and machinery sectors showing the most significant gains, while glass and ceramic products, services, and rubber products sectors experienced declines [1]

Investment Rating - The report maintains a "Recommended" rating for the telecommunications industry, indicating a positive outlook due to sustained high demand driven by AI, 5.5G, and satellite communications [2][6]. Core Insights - The overall market performance for the telecommunications sector shows resilience, with the industry index rising by 0.52% during the week of September 15-21, 2025, while the Shanghai Composite Index fell by 1.30% [2][12]. - The report highlights that the telecommunications cable and supporting sectors experienced the highest increase, with a rise of 5.77%, while the telecommunications application value-added services saw the largest decline at 2.01% [2][14]. - Notable individual stock performances include Dekeli with a 59.09% increase, followed by Online and Offline at 50.59%, and Changfei Optical Fiber at 35.07% [2][16]. Summary by Sections Market Overview - The telecommunications sector's index increased by 0.52% during the specified week, contrasting with the broader market trends where the Shanghai Composite Index decreased [2][12]. - The telecommunications cable and supporting sector led the gains with a 5.77% increase, while telecommunications application value-added services faced a decline of 2.01% [2][14]. Key Developments - The successful launch of a satellite internet technology test satellite on September 16, 2025, marks a significant advancement in satellite networking capabilities [2][18]. - Huawei's announcement of the "Intelligent World 2035" report predicts a tenfold increase in total computing power by 2035, emphasizing the transformative potential of AI and communication technologies [2][21]. Company Announcements - Key announcements from telecommunications companies during the week include dividend declarations and stock reduction activities, reflecting ongoing corporate governance and shareholder engagement [2][25]. - Upcoming announcements for the following week include stock incentive plans and the release of restricted shares, indicating active corporate actions within the sector [2][25].

Group 1 - China Tower Corporation Limited, a subsidiary of China Telecom, announced a public bidding for the "Industry Data Space Application R&D Service Project" on September 19, 2025, with a budget of 1.27 million yuan [1] - China Telecom holds a 20.50% stake in China Tower Corporation Limited, according to equity penetration data [1]

Group 1 - The core point of the article highlights significant stock movements in the A-share market, with several companies experiencing sharp fluctuations during the closing auction [1] - New companies such as Baijiazhenshou-U, New Yisheng, WuXi AppTec, and Zhongji Xuchuang are being added to the FTSE China A50 Index, while companies like China Nuclear Power, China Unicom, Guodian Nari, and Wanhua Chemical are being removed [1] - The changes announced by FTSE Russell on September 3 will take effect after the market closes on September 19 [1]