Group 1 - The implementation of the "Regulations on Satellite Service Management for Direct Connection of Terminal Devices" has begun [1] - Shanxi province will provide full subsidies for highway tolls for hydrogen energy trucks [1] - The water price in central Guangzhou will be increased [1] Group 2 - The A-shares and Hong Kong stocks will have a market closure in one area [2] - CATL's H-shares have been included in the MSCI China Standard and Large Cap Index [2] - The May manufacturing PMI from Caixin for China will be released [2] Group 3 - The May CPI and PPI for China will be announced [2] - The U.S. will release its May unemployment rate and non-farm payroll data [2] - The European Central Bank will announce its interest rate decision [2] Group 4 - The National Development and Reform Commission stated that most policies for stabilizing employment and the economy will be implemented by the end of June [4] - The first Alzheimer's blood test product has received FDA approval and is expected to launch in the U.S. by late June [4] - Tesla plans to launch its Robotaxi service in Austin, Texas, by the end of June [4]

Investment Rating - The report maintains a "Strong Buy" rating for the telecommunications sector [4]. Core Insights - Tencent and Alibaba have shown initial results from their AI investments, indicating a positive impact on their business growth and revenue generation [1][13]. - The report emphasizes the importance of AI capabilities in enhancing advertising effectiveness and user experience in gaming [11][12]. - The investment focus is on three key areas: computing power sector, quality dividend assets in telecom operators, and sectors like military communication, submarine cables, IoT, and smart controllers that are expected to recover gradually [1][16]. Summary by Sections Investment Recommendations - The report suggests focusing on high-growth, low-valuation stocks in the computing power sector, quality dividend assets in telecom operators, and sectors with potential recovery [1][16]. - Recommended stocks include China Mobile, Qii712, Haige Communication, Hengtong Optics, Tuobang Co., and Yiyuan Communication [17][23]. Market Review - The telecommunications sector performed moderately, with the telecommunications index down by 0.12%, underperforming the CSI 300 index by 1.23 percentage points [2][26]. - Among sub-sectors, communication services fell by 1.15%, while communication equipment rose by 0.48% [26]. Industry News - Tencent and Alibaba's Q1 2025 financial results show significant revenue growth, with Tencent's revenue at 180 billion yuan (up 13%) and Alibaba's at 236.5 billion yuan (up 7%) [11][12]. - Both companies reported substantial capital expenditures, with Tencent at 27.5 billion yuan (up 91%) and Alibaba at 23.993 billion yuan (up 136%) [11][12]. Recommended Focus Areas - Suggested areas for attention include smart controllers, IoT modules, telecom operators, military communication and satellite sectors, cables and deep-sea technology, cloud computing, liquid cooling, industrial internet, and cloud communication [24].