Summary of Key Points from Conference Call Records Industry Overview - The conference call primarily discusses the **computing power sector** and its relationship with **AI technology** and **光模块 (optical module)** market dynamics [1][2][4][5][24]. Core Insights and Arguments - **AI Investment Logic**: The logic behind AI investments remains intact, with TOKEN data growth indicating sustained demand for computing power. Despite the absence of blockbuster AI applications, the potential for efficiency and intelligence improvements through AI is significant [1][4]. - **Data Center Evolution**: There is a clear trend towards larger clusters and cabinets in data centers, preparing for explosive future investments in computing power driven by the rapid development of large models [1][5]. - **Ethernet Solutions Demand**: A significant increase in demand for Ethernet solutions is noted, with a shift from NVIDIA's IB solutions to Broadcom's TH5 and Cisco's solutions expected in 2025. However, material supply for optical modules is tight, affecting availability [1][7]. - **Google's AI Investments**: Google continues to invest heavily in AI, with notable advancements in models like Gemini 2.5 Pro, which shows strong benchmark performance [1][8]. Market Performance and Future Expectations - **2023 Performance**: The computing power sector has seen significant growth in 2023, particularly among North American film companies. Despite substantial price increases, companies remain undervalued based on 2025 earnings forecasts [2]. - **CW Laser Market**: The CW laser market is currently in a state of supply-demand imbalance, with slow overseas capacity expansion leading to price increase rumors [2][9][11]. - **2026 Demand Forecast**: The demand for 800G optical modules is expected to reach between 30-35 million units, with 1.6T optical modules exceeding 5 million units. Major players like Meta and Google are driving this demand [2][12]. Additional Important Insights - **Supply Chain Dynamics**: The tight supply of materials, such as EFM and CL switches, is causing price fluctuations. The transition from multimode to single-mode optical modules is also noted [7][9]. - **Silicon Photonics Technology**: This technology presents significant opportunities for companies like旭创, potentially lowering costs and enhancing profitability [15]. - **Market Sentiment**: The overall sentiment in the optical module industry remains optimistic, with key players like旭创, 新易盛, and 天孚 recommended for investment due to their stable performance and low valuation levels [24]. - **Domestic vs. North American Companies**: North American companies have seen larger stock price increases compared to domestic companies, which are expected to benefit from the H20 ban and subsequent domestic replacements [25]. Conclusion - The computing power sector is poised for continued growth, driven by AI advancements and increasing demand for optical modules. Key players in the market are well-positioned to capitalize on these trends, although supply chain challenges remain a critical factor to monitor.

Group 1: Macro Insights - The report suggests that the upcoming months of June and July will be critical for trade negotiations and economic observations, particularly focusing on the U.S.-China and EU trade talks, with a significant meeting scheduled on June 9 [5] - The U.S. economy shows resilience with no signs of recession as of May, and the market expectations for interest rate cuts by the Federal Reserve have been slightly adjusted, indicating a cautious outlook for the next two months [6] Group 2: Market Performance - The stock market is expected to continue its upward trend, with the Shanghai Composite Index rising by 1.13% over the past week, indicating a bullish sentiment among investors [6] - A total of 20 industries are currently in a weekly uptrend, suggesting a broad-based market recovery, with opportunities for investors to position themselves favorably [6] Group 3: Banking Sector - Several banks have announced dividend distributions, with 11 banks having completed their annual dividend distributions by early June, indicating a proactive approach to shareholder returns [21] - The average dividend yield for listed banks is reported at 4.14%, with state-owned banks yielding between 4.3% and 5%, reflecting stable profit growth and a favorable long-term investment outlook [22] Group 4: Coal Industry - The coal price has seen a significant decline from a peak of 1615 RMB/ton in October 2021 to approximately 618 RMB/ton as of June 5, 2025, marking a cumulative drop of 997 RMB/ton [28] - Historical analysis indicates that coal prices typically recover following government intervention or demand-side stimulus, suggesting that policy support will be crucial for future price stabilization [27][28] Group 5: Real Estate Sector - China Resources Vientiane Life is positioned as a leader in commercial operations, with plans to open 6 new shopping centers annually from 2025 to 2028, contributing to revenue growth [31] - The company has demonstrated resilience with a projected retail sales growth of 4.6% in 2024, outperforming the overall retail sector [31] Group 6: Pharmaceutical Sector - The report highlights the transformation of China's innovative drug sector from an importer to an exporter, with a significant increase in the commercialization of innovative drugs [10][11] - The domestic innovative drug market is expected to grow, with the proportion of innovative drugs in medical insurance expenditures rising to 3.19% in 2023, indicating a robust growth trajectory [10] Group 7: Technology Sector - Guokewai plans to acquire a 94.366% stake in Zhongxin Ningbo, which is expected to enhance its capabilities in high-end filters and MEMS, thereby expanding its market reach in smart devices and connected vehicles [42]

Investment Rating - The report maintains an "Accumulate" rating for the media sector [5]. Core Viewpoints - The media sector has shown a positive trend, with a 2.52% increase from June 3 to June 6, 2025, driven by the gaming sector and AI themes [10][12]. - The report highlights optimism for AI applications, IP monetization, and mergers and acquisitions in the media sector by 2025 [10][16]. - Key areas of focus include new AI applications, companies with IP advantages, and state-owned enterprises due to increased funding and market value assessments [10][16]. Summary by Sections 1.1 Market Overview - The media sector's performance is noted with a 2.52% increase, outperforming other sectors such as telecommunications and non-ferrous metals [10][12]. - The top five gainers in the media sector include Gehua Cable (16.4%), Hubei Broadcasting (15.5%), and Shengxun Technology (13.6%) [12][14]. 1.2 Sub-sector Insights - Resource integration expectations are focused on companies like China Vision Media and Guangxi Broadcasting [16]. - AI-related companies to watch include Rongxin Culture and Aofei Entertainment [16]. - In gaming, strong performers include Shenzhou Taiyue and Kainet Network [16]. - State-owned enterprises of interest include Ciweng Media and Anhui Xinhua Media [16]. - In the education sector, Xueda Education is highlighted [16]. - Key Hong Kong stocks include Alibaba and Tencent, with a focus on New Oriental in the K12 education sector [16]. 2. Key Events Review - Google released the Gemini 2.5 Pro model, showcasing superior capabilities in mathematics, programming, and reasoning, achieving a 24-point increase in Elo score [18]. - Luma AI introduced the Modify Video feature, enhancing video creation flexibility, which has gained significant attention on social media [18]. 3. Sub-sector Data Tracking - The domestic film market's total box office from May 31 to June 6, 2025, reached approximately 515 million yuan, with "Mission: Impossible 8" leading at 218 million yuan [20][22]. - The top-rated series during the same period included "Cang Hai Chuan" and "Zhe Yao" [23][24].