China Galaxy Securities: Next-generation communication networks are expected to be commercialized on a large scale. Proposals to seize the three main investment lines in the industrial chain
The Zhitong Finance App learned that China Galaxy Securities released a research report saying that China's 6G technology research and development continues to accelerate, industrial supporting policies are being introduced intensively, satellite communications, space-space integration, and global ubiquitous connectivity drive industry development. The track has broad scope for long-term growth. It is recommended to grasp the three main investment lines of the industry chain: (1) Operators: deeply involved in 6G R&D, satellite and ground integration business implementation, and continued capital development support; (2) 6G main equipment vendors: benefiting from network iteration and increased demand for integrated communication, sensing and intelligent equipment; (3) Satellite Internet: The construction of satellite internet is speeding up, The terminal satellite integration business is being implemented at an accelerated pace.
The main views of China Galaxy Securities are as follows:
Computing power/communication networks are the core of new infrastructure. The deployment of next-generation networks continues to advance and is expected to be commercialized on a large scale
The conference pointed out that it is necessary to actively adapt to the new round of scientific and technological revolution and industrial transformation, firmly grasp the opportunities for next-generation communication network construction, adhere to application leadership and moderately advance, promote the construction of basic networks, spatial networks, international networks, and integrated networks in an integrated manner, and consolidate and enhance the competitive advantage of China's information and communication industry. It is necessary to strengthen innovation drive and intelligent leadership, popularize and promote next-generation smart terminals, actively cultivate high-value scenarios such as smart cities and intelligent manufacturing, and continuously expand the industrial ecosystem. Looking at communication network construction, as of the first half of 2026, the number of 5G base stations reached 5.102 million, and the number of 10 GPON ports with gigabit network service capabilities reached 32.86 million. Actively promote the construction of 5G-A commercial networks, and achieve pilot deployment of 10,000 gigabit optical networks in residential areas, factories, parks, etc. China's intelligent computing power reached 2185 EFLOPS, an increase of 177% over the previous year. Overall, we are currently speeding up large-scale deployments such as 5G-A and 10,000 gigabit optical networks, speeding up the construction of new industrial networks, and forming an infrastructure system adapted to the needs of a smart economy and an intelligent society.
Expansion of connectivity agents, global coverage, capacity upgrades and functional integration, and steady improvement in communication innovation capabilities
Next-generation communication networks are a key innovation in digital information infrastructure for the intelligent age. From an innovative application point of view, connectivity capabilities have been greatly improved, such as certainty and stability, and connectivity targets have expanded from traditional individual users to diverse subjects such as people, machines, objects, and physical intelligence. The coverage area continues to expand, breaking through traditional ground restrictions and expanding to the integrated global coverage of space, earth and sea. Network functions speak in a more intelligent direction, evolving from simple information transmission to deep integration of multiple capabilities such as communication, perception, computing, intelligence, and security. Better meet the differentiated needs of industry applications. Overall, the innovative strength of the communication network industry is steadily improving. The types of 5G-based smart terminals are constantly being enriched, and products such as artificial smartphones and computers, intelligent robots, AI glasses, and AI toys have become new hot spots for information consumption.
6G communication networks open up a new construction cycle, consolidate key technology reserves, and empower 5G application innovation and promotion
The Ministry of Industry and Information Technology approved the license to use the 6G test frequency in the 6GHz band, accelerated the second phase of 6G technology testing, and formed more than 300 6G key technology reserves. Operators lead 6G research and development, and the number of 6G international standard projects set up ranks first among global operators. In terms of industry application empowerment, information and communication technology has deeply empowered the real economy. More than 80,000 virtual private networks have been built in the 5G industry, 5G and gigabit optical network applications have been integrated into 94 major national economic categories, more than 26,000 “5G+ industrial Internet” projects are under construction across the country, and 1,260 classified and characteristic 5G factories have been built. Overall, it continues to play a supporting role as a digital base for next-generation communication networks, and integrated development of intelligent connected vehicles with 5G-A/6G, satellite Internet, etc.
Risk warning: the risk of 6G technology development and iteration falling short of expectations; the risk of the satellite Internet networking process falling short of expectations; the risk of increased industry competition; the risk of domestic and foreign policy uncertainty, etc.