A recent research report indicates that the telecommunications industry demonstrated steady revenue growth and improved profitability in the first half of 2025. Based on a sample of 91 companies in the sector, the telecom industry achieved total revenue of 1,785.003 billion yuan (up 10.07% year-over-year), net profit attributable to shareholders of 160.432 billion yuan (up 11.26% YoY), and adjusted net profit attributable to shareholders of 149.023 billion yuan (up 13.04% YoY).

By sector breakdown, optical modules, telecom PCB, network equipment providers, and IoT module segments showed superior comprehensive performance in H1 2025, with both revenue and net profit growth rates ranking among the industry's top five. The industry currently remains underweight, while computing power capital expenditure maintains high growth momentum. The domestic market is also accelerating alongside global AI development trends, suggesting significant upward potential for telecom industry holdings.

**H1 2025 Telecom Industry Shows Steady Revenue Growth and Improving Profitability**

Based on the 91-company sample, the telecom industry achieved total revenue of 1,785.003 billion yuan (up 10.07% YoY), net profit attributable to shareholders of 160.432 billion yuan (up 11.26% YoY), and adjusted net profit attributable to shareholders of 149.023 billion yuan (up 13.04% YoY).

In Q2 2025, the telecom industry maintained steady revenue growth with accelerated profitability. The sector achieved total revenue of 942.483 billion yuan (up 10.91% YoY), net profit attributable to shareholders of 98.682 billion yuan (up 12.33% YoY), and adjusted net profit attributable to shareholders of 91.262 billion yuan (up 12.94% YoY).

**Sector Analysis: Optical Modules, Telecom PCB, Network Equipment, and IoT Modules Show Superior Performance**

In H1 2025, the top five sectors by revenue growth were optical modules, telecom PCB, network equipment providers, IoT modules, and base station RF-related components. For net profit growth, the top five sectors were optical modules, telecom PCB, network security and visualization analysis, IoT modules, and network equipment providers.

In Q2 2025, optical modules, telecom PCB, network equipment providers, and IoT module sectors achieved high growth performance, with both revenue and net profit growth rates ranking in the top five.

**Industry Remains Underweight with High Computing Power Capex Growth**

Since 2024, NVIDIA has continued accelerating GPU capability upgrades, Broadcom's AI-related revenue and network-side switching chip shipments have grown rapidly, and North American cloud computing giants continue aggressive investments. This trend continues to drive outstanding performance for companies closely tied to overseas AI supply chains.

The analysis suggests that the AI computing power industry chain will continue accelerating development in 2025, combined with evolving inference-side demand, potentially creating broader growth opportunities. The telecom industry's related supply chains are expected to continue benefiting from these trends.

**Investment Recommendations**

**Optical Modules:** Zhongji Innolight (300308.SZ), Eoptolink (300502.SZ), Accelink Technologies (002281.SZ), Huagong Tech (000988.SZ), Deke Technology (688205.SH)

**CPO/Silicon Photonics:** Tianfu Communications (300394.SZ), Silex Microsystems (688313.SH), Yuanjie Technologies (688498.SH), Lightlibrary Technologies (300620.SZ), Changguang Huaxin (688041.SH), Taichen Optoelectronics (300570.SZ)

**PCB:** Shengyi Technology (002463.SZ), Shenznan Circuits (002916.SZ)

**Edge Solutions:** Fibocom (300638.SZ), ZTE Corporation (000063.SZ)

**IDC/Liquid Cooling:** Wangsu Science & Technology (300017.SZ), Aofei Data (300738.SZ), Guanghuan New Network (300383.SZ)

**Network Side:** ZTE Corporation, Ruijie Networks (301165.SZ), Tsinghua Unigroup (000938.SZ), FiberHome Technologies (600498.SH), PhiComm (301191.SZ)

**High-Speed Copper Cables:** Luxshare-ICT (300913.SZ)

**Telecom Operators:** China Mobile (600941.SH), China Telecom (601728.SH), China Unicom (600050.SH)

**Military Communications:** Haige Communications (002465.SZ), 712 Communications (603712.SH), Changying Precision Technology (688143.SH)

**US-Listed Related Stocks:** Credo (CRDO.US), MaxLinear (MXL.US), Arista Networks (ANET.US), 21Vianet (VNET.US), Coherent (COHR.US), Lumentum (LITE.US), Broadcom (AVGO.US), Marvell (MRVL.US), AXT (AXTI.US)

**Risk Factors**

Impact from US-China trade tensions; industry investment below expectations; demand below expectations.