Huatai Securities: Focus on AI computing power chain and telecom operators in the communication sector.

Huatai Securities pointed out that for the selected 137 listed companies in the communication sector as samples, the total revenue/net profit attributable to the parent in the third quarter of 2025 increased by 5.2%/12.3% year-on-year, continuing the overall trend of steady growth. Looking ahead to the fourth quarter of 2025 and 2026, the increased investment in global AI computing power is expected to drive the high growth of net profit attributable to the parent in the optical communication sector; the net profit attributable to the parent in the telecommunications operator sector is expected to maintain steady growth; the ICT equipment and IDC sectors are expected to continue to benefit from the capital expenditure growth of internet giants; the copper connection sector is expected to continue to release capacity and realize growth in net profit attributable to the parent; attention should be paid to demand for hollow core optical fibers, submarine cables, and DCIs in the fiber optic cable sector.