Haitong International Communications Industry 2025 Interim Results Summary: Accelerating Profits and Outstanding Computing Power

The Zhitong Finance App learned that Haitong International released a research report saying that the communications industry is at a stage where the communications industry is low and computing power capital expenditure remains high. The domestic market in China is also closely following the global AI development process and entering a phase of acceleration, and there is still significant room for improvement in the communications industry's holdings. In 2025, the AI computing power industry chain will continue to accelerate development, and superposition inference demand will continue to evolve, which is expected to bring more room for growth, and the communications industry-related industry chain will continue to benefit.

It is recommended to continue to pay attention to industry-related investment opportunities. Focus on: 1. Optical module: Zhongji Xuchuang (300308.SZ) /Xinyisheng/Guangxun Technology/Decolly; 2. CPO/Silicon: Tianfu Communications (300394.SZ) /Shijia Photon/Yuanjie Technology/Optical Bank Technology/Changguang Huaxin/Taichenguang; 3. PCB: Shanghai Electric Power Co., Ltd. (002463.SZ) /Shennan circuit; 4. End side: Guanghetong/ZTE; 5. IDC/liquid cooling: Wangsu Technology/Data/Optoelectronics Huanxin Network; 6. Network side: ZTE Communications/Ruijie Network/Ziguang Corporation/Fiberfire Communications/Philinkos; 7. High-speed copper cable: Zhaolong Interconnect; 8. Carrier: China Mobile/China Telecom/China Unicom; 9: Military Communications Related Subjects: Haige Communications/712/ Changyingtong; 10. US Stock Related Subjects: 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 views are as follows:

In 2025, the overall revenue of the H1 communications industry grew steadily and profits improved. Using 91 companies in the industry as a sample (same below), the communications industry as a whole achieved revenue of 1785.03 billion yuan (YoY +10.07%), net profit to mother of 160,432 billion yuan (+11.26% YoY), and net profit of 149.023 billion yuan (YoY +13.04%). In 2025, the overall revenue of the communications industry grew steadily and profits accelerated in Q2. Using 91 companies in the industry as a sample (same below), overall revenue of 942,483 billion yuan (YoY +10.91%), net profit attributable to mother was 98.682 billion yuan (YoY +12.33%), and net profit after deduction of 91.62 billion yuan (YoY +12.94%).

By sector, the 2025H1 optical module, communication PCB, network equipment vendors, and IoT module sectors had excellent overall performance, and the year-on-year growth rate of revenue and net profit to mother all ranked in the top five in the industry. In 2025H1, the top five sectors with year-on-year revenue growth were optical modules, communication PCBs, network equipment vendors, IoT modules, and radio-frequency related components for base station equipment. The top five sectors with net profit growth rates were optical modules, communication PCBs, network security and visual analysis, IoT modules, and network equipment vendors. 2025Q2, the optical module, communication PCB, network equipment vendors, and IoT module sectors showed high performance, and the year-on-year growth rate of revenue and net profit to mother ranked in the top five.

The industry is at a stage where computing power and capital expenditure remains high. The domestic market in China is also closely following the global AI development process and entering a phase of acceleration, and there is still significant room for improvement in the communications industry's holdings. Since 2024, Nvidia has continued to accelerate the upgrading of GPU capabilities, Broadcom's AI-related revenue and network-side switching chip shipments have grown rapidly, and North American cloud computing giants have also continued to accelerate investment, thus continuing to drive companies closely related to overseas AI industry chains to reap impressive results. Judging that in 2025, the AI computing power industry chain will continue to accelerate development, and superposition inference demand will continue to evolve, which is expected to bring more room for growth, and the communications industry-related industry chain will continue to benefit.

Risk warning: the impact of trade frictions between China and the US; industry investment is lower than expected; demand is lower than expected.