Brokerage Morning Meeting Highlights | Total Capital Expenditure in Telecommunications Pressured by 2025 Focus on Structural Growth Opportunities such as Computing Power and 5G-A

The market hit bottom and rebounded yesterday, with the three major indexes showing mixed movements. The total turnover of the Shanghai and Shenzhen stock markets was 1.08 trillion yuan throughout the day, a decrease of 200.3 billion yuan compared to the previous trading day. In terms of sectors, the beauty and skincare, e-commerce, food, and banking sectors were among the top gainers, while the duty-free, port, Hainan, and rail transportation sectors were among the top losers. As of the close of yesterday, the Shanghai Composite Index rose by 0.15%, the Shenzhen Component Index fell by 0.27%, and the ChiNext Index fell by 0.13%. At today's brokerage morning meeting, China Securities Co., Ltd. proposed actively paying attention to the rare earth sector, which has both offensive and defensive capabilities; CICC believes that the total amount of telecommunications capital expenditure will be under pressure by 2025, focusing on structural growth opportunities such as computing power and 5G-A. China Securities Co., Ltd.: The rare earth sector currently has both offensive and defensive capabilities, and it is recommended to pay attention actively China Securities Co., Ltd. stated that the recent announcement by two ministries on the implementation of export control measures on seven types of medium and heavy rare earth-related items such as scandium, gadolinium, terbium, dysprosium, lutetium, lutetium, and yttrium, downstream performance has been strong under the dual driving forces of export control policies and release of terminal demand, purchasing activity has increased, pushing prices slightly up. Trump's tariff policy is aggressive. China has approximately 70% of the world's rare earth ore reserves, approximately 90% of rare earth refining and separation, and approximately 90% of rare earth magnetic material production capacity. The industry chain is complete, and the independent controllability is strong. Policy-side has introduced dual control measures for production and export, and has strong countermeasures against US tariff policies. On the demand side, rare earth magnetic materials are essential materials for high-performance, energy-saving motors. The use of rare earth permanent magnet material in a single humanoid Siasun Robot & Automation is over 2kg, which is equivalent to the amount used in a new energy vehicle. Musk estimates that the future demand for humanoid Siasun Robot & Automation will reach billions of units, far exceeding the demand for new energy vehicles, with a very broad future space. The rare earth sector currently has both offensive and defensive capabilities, and it is recommended to pay attention actively. CICC: Total telecommunications capital expenditure is under pressure in 2025, focusing on structural growth opportunities such as computing power and 5G-A CICC stated that the financial reports of the three major telecommunications operators in 2024 show that their total capital expenditure in 2024 was 318.9 billion yuan, a year-on-year decrease of 9.7%, which is higher than the initial guidance of 4.5% in 2024. Looking ahead to 2025, in terms of total amount, the three operators' total capital expenditure guidance is expected to decrease by 9.1% year-on-year to 288.9 billion yuan, with investment scale continuing to shrink. In terms of structure, the focus of operator investment is further tilting towards computing power networks, with China Mobile Limited / Telecom / Unicom guiding computing power inputs to increase by 0.5% / 22% / 28% year-on-year, while traditional mobile & fixed network construction is entering a period of focusing on investment efficiency for high-quality and stable development. Future upgrades such as 5G-A, 400G OTN, and 50G PON are expected to drive incremental investments in wireless/wired networks. This article is reprinted from "". Edited by GMTEight: Huang Xiaodong.