Summary of Conference Call Notes Industry Overview - The conference call discusses the **communication industry** with a focus on **deep-sea technology** and its implications for offshore wind power and submarine cable sectors [3][4][6]. Key Points and Arguments 1. **Government Support for Deep-Sea Technology**: The 2025 Government Work Report introduces "deep-sea technology," indicating significant future support for industries like offshore wind power and submarine cables [3][4]. 2. **Provincial Planning in Jiangsu**: Jiangsu Province has released a comprehensive plan for coastal and marine spatial development by 2035, emphasizing the construction of a 10 million kilowatt offshore wind power base [4][6]. 3. **Market Potential**: The report anticipates that more provinces will introduce policies related to deep-sea technology, enhancing the market potential for companies involved in this sector [3][4]. 4. **Submarine Cable Demand**: The demand for submarine cables is expected to rise due to the global expansion of AI technologies, exemplified by Meta's "Waterworth" project, which plans to lay over 50,000 kilometers of submarine cable [4][6]. 5. **Company Recommendations**: Companies such as **Zhongtian Technology** and **Hengtong Optic-Electric** are highlighted as key players in the deep-sea technology sector, with strong order backlogs and competitive advantages [3][4][6]. Financial Projections and Ratings - **Zhongtian Technology**: - Current share price: 14.36 CNY - EPS forecast for 2025: 1.34 CNY - PE ratio for 2025: 13x - Investment rating: Buy [5]. - **Hengtong Optic-Electric**: - Current share price: 16.15 CNY - EPS forecast for 2025: 1.68 CNY - PE ratio for 2025: 14x - Investment rating: Buy [5]. Risks and Challenges - Potential risks include slower-than-expected progress on offshore wind projects, lower-than-expected submarine cable construction, and increased competition leading to reduced profitability [6]. Additional Insights - The report emphasizes the importance of submarine cables in the context of AI-driven global data transmission, highlighting the technical challenges and the competitive landscape for domestic companies [4][6]. - The ongoing development of high-voltage power grids and smart infrastructure is expected to drive demand for specialized cables, further benefiting the recommended companies [4][6].