Zhitong Finance and Economics APP learned that according to the latest data from the Ministry of Industry and Information Technology, as of the first half of 24, the cumulative total volume of telecommunications services reached 899.2 billion yuan, a year-on-year increase of 11.1%; the cumulative total income of telecommunications services reached 894.1 billion yuan, a year-on-year increase of 3.0%, and both volume and revenue maintained steady growth. In terms of cumulative construction of new infrastructure, the total number of 5G base stations reached 3.917 million, a net increase of 0.54 million compared with the end of the previous year, accounting for 33% of the total number of mobile base stations. The construction of 5G networks is steadily advancing. China is accelerating the construction of a system and mechanism to promote the development of the digital economy, improving the policy system to promote the industrialization and digitalization of the digital industry, and continuing to release industry structural policies such as Digital China, which is expected to promote the rapid development of the technology industry. The supply and demand of the algorithm network industry chain are both growing, and it is recommended to choose high-quality targets with marginal improvement in the business of the sub-industry.

China Galaxy Securities' main points are as follows:

The monthly communication index fell back, and the sub-sectors of data center copper wires and temperature control performed relatively well.

The Shanghai Composite Index fell by 0.97% this month; the Shenzhen Component Index fell by 1.07%; the ChiNext Price Index rose by 0.28%; among the first-level industry indexes, the communications sector fell by 2.27%. According to the data division of communication companies into sub-sectors, related targets of sub-sectors such as data center copper wires and damp control performed relatively well this month, and the sector's gains were 5.62% and 5.41%, respectively. Among the individual stocks in the communication sector, the percentage of stocks that rose, remained the same, and fell were 42.97%, 2.34%, and 54.69%, respectively.

24H1 communication industry runs stably, new infrastructure is progressing in an orderly manner, and emerging businesses maintain double-digit growth.

According to the latest data from the Ministry of Industry and Information Technology, as of the first half of 24, the cumulative total volume of telecommunications services reached 899.2 billion yuan, a year-on-year increase of 11.1%; the cumulative total income of telecommunications services reached 894.1 billion yuan, a year-on-year increase of 3.0%, and both volume and revenue maintained steady growth. In terms of cumulative construction of new infrastructure, the total number of 5G base stations reached 3.917 million, a net increase of 0.54 million compared with the end of the previous year, accounting for 33% of the total number of mobile base stations. The number of Internet broadband access ports in the country reached 1.165 billion, a net increase of 29.43 million compared with the end of the previous year. The number of fiber access (FTTH/O) ports reached 1.13 billion, accounting for 96.6% of the total number of Internet broadband access ports. The number of 10G PON ports with the ability to provide gigabit network services reached 25.97 million, a net increase of 2.951 million compared with the end of the previous year. The construction of gigabit fiber broadband networks is steadily advancing. The scale of new infrastructure construction in general continues to increase, and existing infrastructure continues to expand and upgrade. In terms of service usage, the number of mobile internet users reached 1.549 billion households, a net increase of 24.6 million compared with the end of the previous year. The per capita mobile internet access traffic (DOU) in June was 18.15 GB/household, a month-on-month increase of 8.1%, an increase of 1.37GB/household compared with the same period last year. In terms of emerging businesses, the cumulative revenue of emerging businesses completed in the first half of 24 was 227.9 billion yuan, a year-on-year increase of 11.4%, accounting for 25.5% of telecommunications service revenue, driving a 2.7 percentage point increase in telecommunications service revenue growth. Among them, cloud computing and big data revenue increased by 13.2% and 58.6% year-on-year, respectively, and IoT business revenue increased by 12.5% year-on-year.

In terms of telecommunications service usage, the number of mobile Internet users reached 1.549 billion households, a net increase of 24.6 million compared with the end of the previous year. The per capita mobile internet access traffic (DOU) in June was 18.15 GB/household, a month-on-month increase of 8.1%, an increase of 1.37GB/household compared with the same period last year. In terms of emerging businesses, the cumulative revenue of emerging businesses completed in the first half of 24 was 227.9 billion yuan, a year-on-year increase of 11.4%, accounting for 25.5% of telecommunications service revenue, driving a 2.7 percentage point increase in telecommunications service revenue growth.

Overall, China is accelerating the construction of a system and mechanism to promote the development of the digital economy, improving the policy system to promote the industrialization and digitalization of the digital industry, and continuing to release industry structural policies such as Digital China, which is expected to promote the rapid development of the technology industry. With the development of future AI, improvement in localization level, promotion of 6G, and popularization of satellite-related businesses, high-tech will play a leading role in nurturing and developing new and high-quality production forces, which is expected to inject new vitality into China's economic development. The supply and demand of the algorithm network industry chain are both growing, and it is recommended to choose high-quality targets with marginal improvement in the business of the sub-industry.

The supply and demand of the algorithm network industry chain are both growing, and it is recommended to choose high-quality targets with marginal improvement in the business of the sub-industry.

China Galaxy Securities pointed out that under the background of the digital economy's constant enhancement of "AI+" action and new application empowerment of the industry, the new infrastructure of the national integrated computing power system is taking shape. The communication + AI new infrastructure industry chain is expected to be the first to see expected upward adjustments, and the ICT cornerstone optical network industrial chain has both supply and demand pressure. The high-capacity liquid cooling technology empowers data center construction, and the business performance of sub-industries is expected to improve marginally. Submarine cables have great opportunities to go abroad, and leading manufacturers are expected to receive preferential benefits. Operators are improving quality and efficiency, and high dividends bring value highlights. The reform of state-owned enterprises is expected to contribute to valuation reconstruction; 5G applications and the industrial Internet are also key areas of future policies and demand.

Recommendations for attention: Among ICT-related symbols, consider Zhongji Innolight (300308.SZ), Eoptolink Technology Inc. (300502.SZ), Suzhou TFC Optical Communication (300394.SZ), Huagong Tech (000988.SZ), Accelink Technologies (002281.SZ), etc.; For equipment going global, consider Hengtong Optic-Electric (600487.SH), etc.; For application sectors, consider Shanghai Huace Navigation Technology (300627.SZ) in satellite internet; Beijing Inhand Networks Technology (688080.SH) in industrial internet of things; Breakthroughs in quantum information with Guozi Quantum (688027.SH), etc.; Bullish on high dividend + growth new spaces in communication operators: China Mobile (600941.SH, 00941), China Telecom (601728.SH, 00728), China United Network Communications (600050.SH, 00762).

Risk Warning: Risks of unmet application promotion for AIGC; uncertainty risks of domestic and foreign policies and technological frictions; risks of slower-than-expected scale commercialization of 5G, etc.