Zhiting Finance learned from the report by Guojin Securities that the telecommunications industry has been stable and getting better in the third quarter of 23 years. AIGC's massive data calculation and transmission needs will bring about iterative upgrades of computing power and networks and domestic replacement opportunities, which are expected to drive up the prosperity of digital new infrastructure sectors such as 5G, cloud, and optical networks. The sector is currently optimistic about the strategic positioning value of operators, Huawei's domestic intelligent computing ecology and new technology direction, and investment opportunities in AI + heat dissipation and edge computing trends in the communication and computing integration. Head companies with good market structures and economies of scale in high-growth sectors will be the key beneficiaries.

組み合わせをお勧めします：中国移动(600941.SH)(運営者)、中兴通讯(000063.SZ)(機器メーカー)、英维克(002837.SZ)(温度調節液冷装置)、宝信ソフトウェア(600845.SH)(IDC)、キンク・シェンテク(688182.SH)(セラミックフィルター)。

Guojin Securitiesの見解は次のとおりです：

The overall performance of the telecommunications industry is stable, and the profitability is continuously improving.

The total revenue of the telecommunications sector in the first three quarters of 2023 was RMB 2.3586 trillion yuan, a year-on-year increase of 3.0%. The net profit attributable to the parent company was RMB 189.6 billion, a year-on-year increase of 6.1%, and the positive difference between the increase in profit and the increase in revenue continues to expand. The overall prosperity of each sector is good, and the cloud computing, network regulation and optimization, and satellite communication and navigation sectors are ranked in the top three in terms of revenue growth, with growth rates of 15.3%, 14.3%, and 11.3%, respectively; among satellite communication and navigation, cloud computing, and fiber optic cable sectors, the net profit attributable to the parent company is ranked in the top three with growth rates of 46.7%, 23.5%, and 12.4%, respectively.

Investment opportunities in the telecommunications industry are driven by demand, focusing on investment opportunities in subdivisions such as operators, primary equipment manufacturers, and optical communication.

As of the end of September 2023, China has built and opened 3.189 million 5G base stations, accounting for nearly 30% of the total number of mobile base stations. The ARPU of operators has bottomed out and rebounded, and digital transformation has opened up space for market value growth. China Mobile's profitability indicators continue to maintain a leading position worldwide. New technologies such as 5G-A and satellite communication are gradually evolving, and they are expected to drive a new round of growth for antenna RF manufacturers. The optical communication market has bottomed out and rebounded. The upgrade of optical networks and data communication services are booming. The upgrade of 800G optical modules brings structural opportunities. Focus on the rhythm of order acquisition, and the head companies of data communication optical modules are expected to continue to benefit.

AIGC brings new opportunities to the industry, and investment opportunities for domestic manufacturers are driven by computing power demand.

The cloud business revenue of the three major operators continues to grow rapidly, and with the emergence of domestic Internet companies, domestic cloud service providers still have room for improvement in global market share. The demand for AI computing power will bring a new round of construction cycles of data centers such as supercomputers, intelligent computing, and edge computing, which are expected to drive IDC market exploration and recovery, and the sector as a whole has opportunities to repair low valuations. As the core hardware link of computing power, servers have a tendency to evolve towards high-end, and they are accelerating towards the edge. The Kunpeng+Ascension ecosystem is expected to rise in the era of AI, and investment opportunities in server, switch, and software supporting manufacturers are being watched. The trend of liquid cooling is certain. It is an incremental market of 0 to 1. With the increase of chip power consumption and cabinet power density, coupled with energy consumption requirements, it will inevitably bring about the upgrading of cooling technology from air cooling to liquid cooling. The industry penetration is in a fast climbing phase of 10%, focusing on manufacturers with leading layouts in technology, capacity, and ecology.

The Internet of Things sector is still at the bottom of the stage, and is optimistic about the recovery of industry demand brought about by the landing of AI applications on the edge.

The Internet of Things is currently in a transition period from connection monetization to traffic monetization, and the main beneficiaries are still in the perception and connection layer. The industry's revenue growth rate in the first three quarters was as high as 4.3% year on year, but the profitability showed a downward trend. Affected by factors such as downstream demand slowdown and high inventory, the revenue of head companies in the module sector has slowed down, but the industry is still in a high-speed growth period, and it is expected to show a quarterly upward trend starting from the fourth quarter. Based on effective price transmission and alleviation of supply chain shortages, the profitability of the smart controller segment is continuously recovering, and the turning point of gross profit rate repair has arrived. Smart controller and module manufacturers are expected to benefit from the weakening of supply volume impact and the increase in downstream scene demand, further improving profitability.

リスクの警告：供給チェーンリスク、消費電子分野における需要の回復が期待されないリスク、および技術開発とイノベーションのスピードが期待よりも低いリスク。Operators' capital expenditures fall short of expectations; the progress of the 5G industrial chain and commercialization falls short of expectations; the growth of the number of IoT connections falls short of expectations; the landing of AI applications falls short of expectations; upstream raw materials are continuously in short supply.