China Merchants Securities released a research report stating that the industrial internet sector is experiencing intensive policy implementation, establishing a comprehensive development system that propels the industry towards a transformation focused on quality enhancement and efficiency improvement. Industrial communication companies, leveraging their differentiated technologies and scenario-specific advantages, are positioned to deeply benefit from these policy dividends, contributing to industrial upgrading across foundational technologies, hardware support, and practical application scenarios. The main viewpoints of China Merchants Securities are as follows.
Recent intensive policy rollouts in the industrial internet sector have set the direction for high-quality industrial development. By the end of December 2025, the introduction of three major policies, including the "Implementation Opinions on the Special Action for 'AI + Manufacturing'", the "Action Plan for Promoting High-Quality Development of Industrial Internet Platforms (2026-2028)", and the "Action Plan for the Integrated Empowerment of Industrial Internet and Artificial Intelligence", has constructed a policy framework centered on "AI integration, platform upgrading, and manufacturing empowerment". Behind this wave of policies lies the critical imperative for China's industrial internet industry to shift from scale expansion to quality and efficiency enhancement. Currently, China hosts over 340 influential industrial internet platforms, with key platforms connecting more than 100 million units of equipment; however, challenges such as insufficient differentiation and shallow application depth persist. The policies precisely target these pain points, injecting strong momentum into industrial development.
The series of policies each have distinct focuses yet work in synergy, establishing comprehensive, full-chain development guidance. The "Implementation Opinions on the Special Action for 'AI + Manufacturing'" sets a target for 2027, detailing 21 specific measures, strengthening computing power supply and the development of large industry-specific models, planning to launch 1,000 high-level industrial intelligent agents, promoting the deep integration of AI with industrial internet, and fostering ecosystem-leading enterprises. The "Action Plan for Promoting High-Quality Development of Industrial Internet Platforms (2026-2028)", serving as a three-year roadmap, proposes four major actions, aiming for over 450 platforms, connections of industrial equipment exceeding 120 million units, and a platform penetration rate of over 55% by 2028, while encouraging platform specialization, industry-specific development, and collaboration. The "Action Plan for the Integrated Empowerment of Industrial Internet and Artificial Intelligence" focuses on the core task of network transformation, pushing for new industrial network upgrades in no fewer than 50,000 enterprises, periodically releasing catalogs of new industrial network products, and advancing transformation in key industries. Furthermore, the Industrial Internet Industry Alliance released the "New Industrial Network Industry Chain Catalog (2025)" on September 25, 2025, aggregating innovative products to provide industrial chain support for policy implementation, accelerating the commercialization of new industrial network technologies and products, and comprehensively supporting the digital and intelligent transformation of manufacturing and the cultivation of new quality productive forces.
Industrial communication enterprises are deeply intertwined with the development opportunities of the industrial internet and stand to benefit from the release of policy dividends. Kyland Technology, by spearheading the formulation of the AUTBUS international standard and developing its own HongDao operating system, has built a full-stack closed-loop system that deeply aligns with the policy's core focus on new industrial network transformation, solidifying its moat in critical sectors like power and rail transit; the company's TSN chips, industrial 5G chips, and TSN switches were selected for the Catalog. 3onedata focuses on hardware products like industrial Ethernet and industrial 5G, holding a significant first-mover advantage in TSN and Ethernet-APL technologies; its TSN switches were included in the Catalog, and the TSN chips from its associated company, Nanjing Yitai Microelectronics, were also selected. InHand Networks provides cloud-centric edge intelligent solutions for executing data processing tasks and even AI algorithms on edge devices, assisting industrial enterprises in achieving efficient local data processing and decision-making; its EdgeAI system and AI edge computer product portfolio support mainstream AI applications for industrial firms, including machine vision, video analytics, and automated inspection.
Risk warnings include: product competitiveness declining due to slower-than-expected technological iteration, corporate profit margins being squeezed by intensifying industry competition, and uncertainties regarding the pace and effectiveness of policy implementation.
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