Core Insights - China Mobile is advancing the integration of digital intelligence and industrialization, focusing on AI-driven innovations to support industrial upgrades and contribute to new industrial development [1][18] - The company showcased its "Nine Sky" foundational model V3.0 at the 2025 World Artificial Intelligence Conference, highlighting its capabilities in language, vision, and voice understanding, which are among the industry's top tier [1][2] Digital Intelligence in Life - The "Nine Sky" model serves as an accelerator for industrial intelligence transformation, offering functionalities for model development, intelligent application creation, and resource integration [2] - China Mobile's AI-enabled devices, such as smart cars and AI smartphones, are designed to enhance personal life experiences, promoting the vision of "AI for Life" [4][5] Digital Intelligence in Governance - The company is redefining modern governance efficiency through technological innovation, exemplified by AI-driven risk identification and cross-departmental collaboration in local governance [8][9] - AI applications in public safety, such as traffic monitoring and drowning prevention, are effectively reducing accident rates and enhancing community safety [9][11] Digital Intelligence in Production - China Mobile is facilitating new industrialization by implementing AI in various production processes, leading to improved data management and product quality [12][14] - The use of AI in quality inspection and safety monitoring has shown significant efficiency gains, such as a 70% improvement in response times and a 50% reduction in safety management personnel [14][16] Digital Intelligence in Research - The company is pioneering the "AI for Science" paradigm, enhancing research efficiency through AI-assisted experimental processes [16] - China Mobile's quantum computing initiatives, including the Five Mountains Era Quantum Cloud Platform, are positioned as leading innovations in the field [16][18]

Investment Rating - The industry investment rating is "Positive" (maintained) [6] Core Viewpoints - Telecom operators are increasing their layout in AI terminals, which is expected to open up growth space for the industry. The focus should be on AI terminal SoC manufacturers such as Amlogic and Rockchip [4][22] - The market is currently more focused on smart hardware and internet companies' layouts in AI terminals, while the role of telecom operators in this area has been overlooked. Telecom operators have strong channel advantages and brand effects in the smart home sector [8][9] - The growth momentum of mobile smart screens is strong, with a projected retail volume of 254,000 units in 2024, representing a year-on-year increase of 65%. The online market accounts for 86.5% of total retail volume [12][20] Summary by Sections Investment Suggestions and Targets - It is recommended to pay attention to Amlogic (688099, Buy) and Rockchip (603893, Not Rated) as potential investment targets in the AI terminal SoC sector [4][22] Industry Trends - Major telecom operators are launching innovative AI smart home terminal products, enhancing their competitive advantage in the smart home business. The integration of mobile smart screens with 5G and broadband services is expected to promote the application of AI terminals in home scenarios [8][9] - Telecom operators are investing in AI large models to enhance the intelligence of AI terminals. For instance, China Mobile showcased its AI technologies at the 2025 World Artificial Intelligence Conference, while China Telecom introduced its self-developed star model system [15][20] Market Growth Projections - The mobile smart screen market is expected to maintain rapid growth, with total retail volume projected to reach 470,000 units in 2025, reflecting an 85% year-on-year increase [12][20]