China Galaxy Securities: The new generation of communication networks is expected to be commercialized on a large scale. It is recommended to focus on three investment main lines in the industry chain.

China Galaxy Securities released a research report stating that the R&D of 6G technology in our country is accelerating, and industrial support policies are being introduced intensively. The development of satellite communication, space-ground integration, and ubiquitous connectivity is driving the industry's growth, with significant long-term growth potential in the sector. It is recommended to focus on three investment themes in the industrial chain: (1) Operators: Deep participation in 6G R&D and the implementation of space-ground integration services, with sustained capital expenditure; (2) Main 6G Equipment Vendors: Benefiting from network iterations and the increasing demand for integrated sensing and computing devices; (3) Space-ground integration and satellite internet: Acceleration in satellite internet construction and faster implementation of terminal satellite integration services. The main points from China Galaxy Securities are as follows: Computing power/communication networks are the core of new infrastructure, and the deployment of a new generation of networks continues to advance, promising large-scale commercial applications. The conference pointed out the need to actively respond to the new round of technological revolution and industrial transformation, seizing the opportunities of constructing a new generation of communication networks. It emphasized application-driven development while appropriately leading the way, comprehensively promoting the construction of basic networks, spatial networks, international networks, and integrated networks to consolidate and enhance the competitive advantage of China's information and communication industry. There is a need to strengthen innovation-driven strategies and intelligent leadership, promote the widespread adoption of new-generation smart terminals, and actively cultivate high-value scenarios such as smart cities and intelligent manufacturing to continuously strengthen the industrial ecosystem. In terms of communication network construction, by the first half of 2026, the number of 5G base stations will reach 5.102 million, with 10G PON ports capable of providing gigabit network services expected to reach 32.86 million. The construction of commercial 5G-A networks is progressing, with pilot deployments of 10G optical networks being implemented in residential areas, factories, and parks. The scale of our intelligent computing power has reached 2185 EFLOPS, a year-on-year increase of 177%. Overall, there is a current acceleration in the deployment of 5G-A, 10G optical networks, and the construction of new industrial networks to form an infrastructure system that meets the needs of the intelligent economy and society. The expansion of connectivity, comprehensive coverage, capability upgrades, and functional integration are steadily enhancing communication innovation capabilities. The new generation of communication networks represents a key revolution for the intelligent DYNASTY DIGITAL information infrastructure. From the perspective of innovative applications, the connection capability has significantly improved in terms of determinacy and stability, expanding from traditional individual users to a diverse range of subjects including people, machines, objects, and embodied intelligence. The coverage area continues to expand, breaking through traditional terrestrial limitations and extending towards integrated full-domain coverage of air, ground, and sea. Network functionalities are evolving towards greater intelligence, progressing from simple information transmission to the in-depth fusion of communication, perception, computation, intelligence, and security capabilities. This better meets the differentiated demands of industry applications. Overall, the innovation capabilities in the communication network industry are steadily improving, with a continuous diversification of smart terminal types based on 5G. Artificial intelligence products such as smartphones, computers, smart Siasun robots and automation, AI glasses, and AI toys have become new hotspots in information consumption. The 6G communication network opens a new cycle of construction, solidifying reserves of key technologies and empowering the innovation and promotion of 5G applications. The Ministry of Industry and Information Technology has approved the use of frequencies in the 6GHz band for 6G testing, accelerating the advancement of the second phase of 6G technology experiments and forming reserves of over 300 key 6G technologies. Operators are leading the 6G R&D work, with the number of international standards projects for 6G ranking among the top tier globally. From the perspective of industry application empowerment, information and communication technology is deeply empowering the real economy, with more than 80,000 5G industry virtual private networks established. The applications of 5G and gigabit optical networks have been integrated into 94 categories of the national economy, with over 26,000 ongoing projects for 5G + Industrial Internet and the establishment of 1,260 specialized, categorized, and distinctive 5G factories. Overall, there is a continuous effort to leverage the supporting role of the new generation of communication networks, and to promote the integrated development of intelligent connected vehicles with 5G-A/6G and satellite internet. Risk reminders: Risks of 6G technology R&D and iteration falling short of expectations; risks of the satellite internet networking process not meeting expectations; risks of intensified industry competition; uncertainties related to domestic and foreign policies.