According to Zhitong Finance APP, Haitong International released a research report stating that the communication industry is in an underallocation phase, with computing power capital expenditure maintaining high growth. The domestic market is also following the global AI development process and entering an acceleration phase, indicating significant upward potential for communication industry holdings. The AI computing power industry chain is expected to continue accelerating development in 2025, combined with evolving inference-side demand, which is anticipated to bring broader growth opportunities. The communication industry's related industrial chains will continue to benefit. The report recommends continued attention to relevant investment opportunities in the industry.
Key focus areas include: 1. Optical modules: Zhongji Innolight Co.,Ltd. (300308.SZ)/Eoptolink/ACCELINK/HG Tech/Dekolink; 2. CPO/Silicon photonics: Suzhou Tfc Optical Communication Co.,Ltd. (300394.SZ)/Shijia Photons/Advanced Semiconductor Materials/Optcore/Changguang Huaxin/Taichen Optics; 3. PCB: Wus Printed Circuit(Kunshan)Co.,Ltd. (002463.SZ)/Shenznan Circuits; 4. Terminal side: Fibocom/ZTE; 5. IDC/Liquid cooling: Wangsu Science & Technology/Aofei Data/GDS; 6. Network side: ZTE/Ruijie Networks/Tsinghua Unigroup/FiberHome Communications/PhiComm; 7. High-speed copper cables: Amphenol ICC; 8. Telecom operators: China Mobile/China Telecom/China Unicom; 9. Military communication targets: Haige Communications/Radio No.712/Changying Precision; 10. US stock targets: Credo (CRDO.US), MaxLinear (MXL.US), Arista Networks (ANET.US), VNET Group (VNET.US), Coherent (COHR.US), Lumentum (LITE.US), Broadcom (AVGO.US), Marvell (MRVL.US), AXT (AXTI.US).
Haitong International's main viewpoints are as follows:
The communication industry achieved steady revenue growth and upward profitability in H1 2025. Based on a sample of 91 companies in the industry, the communication sector overall achieved revenue of 1,785.003 billion yuan (up 10.07% year-over-year), net profit attributable to parent company of 160.432 billion yuan (up 11.26% year-over-year), and non-recurring net profit attributable to parent company of 149.023 billion yuan (up 13.04% year-over-year).
In Q2 2025, the communication industry maintained steady revenue growth with accelerating profitability. Based on the same sample of 91 companies, overall revenue reached 942.483 billion yuan (up 10.91% year-over-year), net profit attributable to parent company of 98.682 billion yuan (up 12.33% year-over-year), and non-recurring net profit attributable to parent company of 91.262 billion yuan (up 12.94% year-over-year).
By sector, optical modules, communication PCB, network equipment manufacturers, and IoT module segments showed superior comprehensive performance in H1 2025, with both revenue and net profit attributable to parent company growth rates ranking among the industry's top five.
In H1 2025, the top five sectors by revenue growth were optical modules, communication PCB, network equipment manufacturers, IoT modules, and base station equipment RF-related components. The top five sectors by net profit growth were optical modules, communication PCB, network security and visualization analysis, IoT modules, and network equipment manufacturers.
In Q2 2025, optical modules, communication PCB, network equipment manufacturers, and IoT module segments achieved high performance growth, with both revenue and net profit attributable to parent company growth rates ranking in the top five.
The industry remains underallocated, with computing power capital expenditure maintaining high growth. The domestic market is also following the global AI development process into an acceleration phase, indicating significant upward potential for communication industry holdings. Since 2024, NVIDIA has continued to accelerate GPU capability upgrades, Broadcom's AI-related revenue and network-side switching chip shipment volumes have grown rapidly, and North American cloud computing giants continue to accelerate investments, driving companies closely related to overseas AI industrial chains to achieve outstanding performance. It is anticipated that the AI computing power industry chain will continue accelerating development in 2025, combined with evolving inference-side demand, bringing broader growth opportunities, and the communication industry's related industrial chains will continue to benefit.
Risk warnings: Impact of US-China trade friction; industry investment below expectations; demand below expectations.
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