CITIC Securities: Profitability of the communication sector has improved, institutional holdings reach a new high.

CITIC Securities Research Report believes that in the second quarter of 2025, the revenue and net profit growth rate of the communications sector have increased compared to the same period last year, with gross profit margin and net profit margin reaching new highs since 2022. The performance of the AI computing power sector is impressive. The proportion of public funds and northbound funds' holdings in the communications industry market value has reached historical highs of 3.85% and 2.18% respectively. At present, the penetration rate of AI users is still relatively low, the development of large models is still in the early stages, the industrialization cycle is just beginning, and the investment in computing power brought by large models is flourishing, with capital expenditure increasing with the growth of large model income. The investment ceiling can be very high. AI computing power is a sector-wide major trend, and individual stocks in the industry chain generally have opportunities. It is recommended to continue to pay attention.