【Wind Report】The scale development of 5G applications accelerates the penetration of high-end products.

On December 31, the Shanghai and Shenzhen stock markets fluctuated and adjusted, with the Shanghai Composite Index falling by more than 1% and the ChiNext Index falling by nearly 3%.

Gas supply, heating, electrical chain, coke processing, liquor, chemical machinery and other industries are strong against the trend, while securities, semiconductors, electronic components, diversified finance, software services, copper, IT equipment, insurance, shipping, publishing industry and other industries are weak; in terms of concept stocks, diamond cultivation is rising, copper cable high-speed connection, storage chips, wireless headphones, digital currency, etc. are adjusting.

The Ministry of Industry and Information Technology recently issued a notice on the implementation plan for the upgraded version of the "5G + Industrial Internet" 512 Project, proposing to build 10,000 5G factories and create no fewer than 20 pilot cities for the integration of "5G + Industrial Internet" by 2027. Galaxy Securities stated that the scale development of 5G applications is expected, with the improvement of the business climate in preferred sub-industries and high-quality targets; Huafu Securities pointed out that there is still a broad market space for domestic substitutes in the development of 5G, and is optimistic about the prospects of domestic manufacturers in the coming years; Huachuang Securities believes that with the launch of 5.5G construction, the domestic 5G infrastructure sector is expected to usher in another wave of growth with both quantity and price rising.

CICC: 5G starts to enter the investment return period

5G is entering the investment return period, and the valuation of telecommunications service sector is attractive in a low interest rate environment. The transformation of technology brings long-term income growth momentum, and operators actively layout cloud, AI, satellite communication, and quantum technology. In recent years, telecom operators have paid increasing attention to accounts receivable, and the bad debt risk of toB business is relatively controllable. Tower business capital expenditure is stable, with abundant free cash flow, and there is great potential for dividend improvement; in the fourth quarter of 2025, with the expiration of the depreciation of existing towers, profits are expected to increase significantly, opening up space for dividend improvement, and shareholder returns are expected to increase.

Galaxy Securities: 5G applications are expected to scale up development

5G applications are expected to develop on a large scale, and high-quality targets with improved marginal prosperity in preferred sub-industries. Against the background of the digital economy's continuous promotion of the "AI+" action and the empowerment of new applications for the industry, the new national integrated computing power system infrastructure is expected to be solid. Suggestions: 1. Telecom operators with network infrastructure upgrades and central enterprise leading new space, such as China Mobile and China Telecom; 2. Optical module companies, such as Zhongji Xuchuang and Tianfu Communication; 3. IoT and cutting-edge applications, such as Guanghetong and Weisheng Information.

Huafu Securities: Accelerating the penetration of high-end products in the 5G era

The development of 5G has created a broad market space for domestic alternatives. By examining the basic situation of domestic manufacturers, it can be seen that the product portfolios of various companies are gradually being filled, especially with the outstanding performance of L-PAMiD products and the layout of Phase8 series solutions. The future prospects of domestic manufacturers are promising in the coming years.

Huachuang Securities: 5G infrastructure is expected to usher in another wave of growth in volume and price.

With the launch of 5.5G construction, the domestic 5G infrastructure sector is expected to usher in another wave of growth in terms of both quantity and price after the evolution from 4G to 5G, surpassing the global market growth rate, thereby bringing investment opportunities for the entire industry chain from 5.5G facilities to applications.

Huolong Securities: Domestic 5G-A continues to accelerate its development, and related infrastructure construction continues to follow up.

The domestic development of 5G-A is accelerating, and the related infrastructure construction is keeping up. Major telecom operators are continuously promoting the commercialization of 5G-A, which is expected to drive the performance improvement of companies in the industry chain. At the same time, with the continuous development of low-altitude economy, 5G has become one of the technologies that accelerate its takeoff, and major telecom operators are also actively promoting the application of 5G in low-altitude economy.

(This article does not constitute any investment advice. Investors operate according to this, and all consequences are at their own risk. There are risks in the market, and investment needs to be cautious.)

(Article Source: Oriental Fortune Research Center)

Source: East Money

Author: Oriental Fortune Research Center