Intelligent Financial APP learned that China Galaxy Securities has released a research report stating that the 2024 Global 6G Development Conference successfully opened in Shanghai, marking a gradual acceleration in 6G development. 6G, as the sixth generation of mobile communication technology, supports higher transmission rates, extremely low latency, and introduces new scenarios. Compared to 5G, its most important feature is the integration of heaven and earth and artificial intelligence. The fusion of artificial intelligence with communication technology may complement the industrial chain, driving the enhancement of 6G intelligence. The high communication rate of 6G will also drive the trend of AGI development. Advanced 6G technologies are gradually emerging, with a bullish outlook on the development of the 6G hardware industry chain led by the three major operators.

Event: On November 13, 2024, the 2024 Global 6G Development Conference successfully opened in Shanghai, with the theme of 'Advancing a New Journey, Looking at the Forefront of 6G Standards.'

China Galaxy Securities' main points are as follows:

The 2024 Global 6G Development Conference successfully opened, marking a gradual acceleration in 6G development.

6G, as the sixth generation of mobile communication technology, supports higher transmission rates, extremely low latency, and introduces new scenarios such as the combination of communication and perception, the fusion of communication and artificial intelligence, and ubiquitous IoT. During the 6G Technology Research and Development Achievement Exhibition held at this conference, companies like Nokia Bell, China Mobile Communications, and others displayed a variety of 6G technology concept prototypes and scenario demonstrations, showcasing the substantial potential of 6G technology in future integrated perception, AI integration, heaven and earth communication, and more.

The most important feature of 6G is the integration of heaven and earth and artificial intelligence.

Compared to 5G, in addition to the upgrade of base station standards, the most important aspect of 6G focuses on the integration of AI and the integration of heaven and earth. The bandwidth of 6G is expected to exceed 100 times that of 5G, with frequencies possibly reaching the terahertz level (THz). By June 2023, ITU-R WP5D clearly outlined the six major application scenarios of 6G: immersive communication, ultra-high reliability and low latency, massive communication, ubiquitous connectivity, integrated sensing and intelligence, where the first three are extensions and enhancements of the 5G eMBB, uRLLC, and mMTC application scenarios. Ubiquitous connectivity aims to solve current communication issues in areas without coverage or with minimal coverage, while integrated sensing and integrated intelligence introduce new sensing and AI elements in communication networks to more thoroughly connect the digital and physical worlds. Compared to 5G, 6G represents a significant leap forward.

The development of AI combined with communication technology may complement the industry chain, with AI driving the increased intelligence of 6G and the high communication rate of 6G also propelling the development trend of AGI upwards. Currently, China's 6G technology patents continue the leading position from 5G, remaining at the forefront globally. The capital expenditure of operators is gradually shifting from 5G infrastructure construction to 5.5G and intelligent computing infrastructure construction. Fill up satellite also showcased its satellite internet 'Qianfan Constellation' at this conference, indicating that China's 6G development trend is gradually becoming clearer.

The frontier technologies of 6G are gradually breaking through, with a bullish outlook on the development of the 6G hardware industry chain led by the three major operators.

Based on the overall research pace of 6G, the attention on 6G is gradually increasing. The new network performance of hundredfold speeds, capacity, etc., is leveraging the six major application scenarios. 6G's ultra-large-scale antenna array ELAA-MM transforms from 64T64R to 256T256R, once again restructuring the base station industry chain. Antennas, filters, power amplifiers, PCBs all see price increases, with full-duplex CCFD, intelligent metamaterials RIS, orbital angular momentum OAM, terahertz electro-optical transmission, and other technologies further increasing component usage and material refinement considerations. We believe there is a need to focus on the three major operators responsible for 6G infrastructure construction and network deployment and gradually expand the industrial chain in hardware and software sectors.

Recommendations:

Operators: China Mobile (600941.SH)/China Unicom (600050.SH)/China Telecom (601728.SH);

International standard participants: ZTE (000063.SZ)/InnoMobile-U (688387.SH);

Station Antennas and Antenna Elements with Growth Potential: Tongyu Communication Inc. (002792.SZ)/Shenzhen FRD Science & Technology (300602.SZ)/Sunwave Communications (002115.SZ);

Ceramic dielectric resonator filters: Canqin Technology (688182.SH)/Wuhan Fingu Electronic Technology (002194.SZ)/Anhui Tatfook Technology (300134.SZ);

Silicon photonics/CPO/LPO actively layout: Zhongji Innolight (300308.SZ)/Eoptolink Technology Inc. (300502.SZ)/Suzhou TFC Optical Communication (300394.SZ)/Broadex Technologies (300548.SZ);

Satellite internet terminal + phased array chip: Jushri Technologies, Inc (300762.SZ)/Guangzhou Haige Communications Group Incorporated (002465.SZ)/Shenzhen H&T Intelligent Control (002402.SZ);

Internet of Things and frontier applications: Fibocom Wireless Inc. (300638.SZ)/Meig Smart Technology (002881.SZ)/Willfar Information Technology (688100.SH)/Beijing InHand Networks Technology (688080.SH) etc.

Risk warning: Risks of 6G development falling short of expectations; risks of changes in global political and economic situation, etc.