China Galaxy Securities: The collective procurement price of fiber optic cables hits a new high, with high growth in ethernet optical module sales.

China Galaxy Securities released a research report stating that by 2025, the market share of local chips in China's cloud AI accelerator market has increased to about 41%, with Huawei's Ascend chips accounting for approximately 812,000 units shipped, holding a 20% market share, second only to Nvidia (55%), leading significantly among local manufacturers. In addition, China Mobile Limited's 2026-2027 special optical cable procurement project results were announced. This procurement includes five types of products including submarine optical cables, air-blown micro cables, and optoelectronic composite cables, with a total length of approximately 79,400 kilometers (equivalent to 3.13 million fiber kilometers). The project's maximum untaxed price is approximately 251 million yuan. Except for the winning bidder in first place, the remaining seven manufacturers bid at the maximum limit price, further confirming the significant trend of rising prices for fiber optic cables. China Galaxy Securities' main points are as follows: The communication sector rose by 3.01% in the past week, with subsectors such as fiber optic cables and optical devices performing well. The Shanghai Composite Index fell by 0.86% this week; the Shenzhen Component Index fell by 2.96%; and the Growth Enterprise Market Index fell by 4.44%. In terms of primary industry index, the communication sector rose by 3.01%. According to the bank's division of sub-sectors data for communication industry companies, subsectors such as fiber optic cables and optical devices performed well, with increases of 18.80% and 7.99%, respectively. Among the individual stocks in the communication sector, 25.95% rose, 4.58% remained unchanged, and 69.47% fell. Key industry events of the week: 1) China Mobile Limited's special optical cable procurement set a new price peak: China Mobile Limited's 2026-2027 special optical cable procurement project results were announced, including five types of products. 2) LightCounting forecasts a 60% increase in Ethernet optical module sales in 2026. 3) IDC's latest report shows that domestic chip market share exceeds 40%, with Huawei Ascend leading the way. 4) The Ministry of Industry and Information Technology stated plans to accelerate the construction of low-orbit satellite internet network. Risk factors: Risks associated with the application of AIGC not meeting expectations, uncertainties related to domestic and international policies and technological friction, and risks associated with the commercialization of 5G not meeting expectations.