Shenzhen Sunway Communication

Against the backdrop of crowded trading in A-share technology hot sectors and amplified short-term volatility, institutions recommend that investors shift their attention to three major sectors: the low-altitude economy, humanoid robots, and commercial aerospace, seizing pullback windows to position at lower levels. CICC believes that the intensive rollout of low-altitude economy policies is resonating with technological iteration across the industry chain, and expectations for an industry inflection point are gradually strengthening. Guoyuan Securities analyst Gong Siwen suggests focusing on whole-machine names such as Wanfeng Auto Wheel, EHang, JOUAV, and Lvneng Huichong, as well as core component names such as Zongshen Power, Wolong Electric Drive, Yingliu Shares, and Inpower. On the humanoid robot front, Unitree Robotics recently entered the capital market and is expected to provide a clearer valuation anchor for the sector, driving a shift in capital from pure thematic speculation to growth-based pricing. Huayuan Securities analyst Zhao Mengni suggests focusing on Everwin Precision, Foresight Technology, Sanhua Intelligent Controls, Tuopu Group, Leader Harmonious Drive, Shuanghuan Transmission, Hengli Hydraulic, Zhejiang Rongtai, Moons' Electric, and Zhaowei Machinery & Electronics. In commercial aerospace, the Long March 10B and Zhuque-3 have successively completed successful recoveries, and reusable rocket technology is maturing. With falling launch costs resonating with demand for low-orbit constellation networking, industrialization is expected to accelerate. Guotai Haitong Securities analyst Yang Tianhao suggests focusing on Chengchang Technology, Tongyu Communication, Sunway Communication, Shanghai Hanxun, Aerospace Electronics, Feiwo Technology, Sirui Advanced Materials, and Western Metal Materials.

Xinwei Communication issued an announcement clarifying media reports that a certain North American company required suppliers to exclude Chinese employees and equipment. The company stated that the reports lack factual basis, and that the commercial cooperation terms with the client have not undergone any changes. Production, delivery, and research and development related to the commercial satellite communications business are all proceeding normally. The company already transferred the production line for commercial satellite communication products to overseas bases such as Vietnam last year, and the relevant production lines have achieved mass production and continue to deliver stably to the client. Revenue from the commercial satellite communications business accounted for less than 10 percent of the company's total operating revenue in 2025, and the risk of performance fluctuations is generally controllable. In the first quarter of 2026, Xinwei Communication achieved revenue of 1.992 billion yuan and net profit attributable to the parent company of 105 million yuan.

On July 23, the communication equipment concept rose 3.11% intraday. Among related constituent stocks, Sanwang Communication surged 19.99%, Changyingtong rose 7.52%, Xinwei Communication gained 6.91%, Tongding Interconnection climbed 6.38%, and Cambridge Technology advanced 5.94%. According to Securities Daily, ZTE and its partners jointly created a distributed all-optical interconnect chip and super-node application innovation solution. This solution builds a low-latency, ultra-high-bandwidth, scalable GPU computing network based on optical interconnect and optical switching technology, achieving full-stack autonomous control. A research report from Guotai Hainan Securities noted that the PON equipment market is undergoing a generational upgrade from 10G PON to 25G/50G PON. According to Frost & Sullivan forecasts, the global 25G/50G PON market size will reach 5.7 billion US dollars in 2029, with a compound annual growth rate as high as 99.8% from 2024. A research report from Guosheng Securities pointed out that the AI demand surge is driving high-speed growth in optical communication components. Data centers are transforming towards high density, low power consumption, and high speed, with optical module speed iteration accelerating. Related enterprises will fully benefit from AI infrastructure construction.

On the evening of July 14, multiple listed companies on the Shanghai and Shenzhen exchanges issued significant positive announcements. CICC’s application to absorb and merge Dongxing Securities and Cinda Securities has been accepted by the China Securities Regulatory Commission, though the transaction still requires review by the Shanghai Stock Exchange and approval from other regulatory bodies. Several companies disclosed first-half earnings forecasts, with Tianqi Lithium expecting a net profit attributable to shareholders of 2.85 billion to 4.25 billion yuan, a year-on-year increase of 3,276.35% to 4,934.91%; Litong Electronics forecasting a net profit of 650 million to 750 million yuan, up 1,172.53% to 1,368.31%; Yangtze Optical Fibre and Cable projecting a net profit of approximately 2.4 billion to 3 billion yuan, up 711% to 914%; and China Life Insurance anticipating a net profit of about 128.933 billion to 137.119 billion yuan, up 215% to 235%. In addition, Sieyuan Information plans to purchase high-performance computing servers for no more than 5.079 billion yuan, Runjian Co. intends to buy back shares worth 150 million to 300 million yuan, Sunway Communication plans to acquire a 55% stake in Yiyang Electronic Technology for up to 1.1 billion yuan to strengthen its high-end MLCC layout, and Andawell’s wholly-owned subsidiary has signed a memorandum of cooperation with Airbus to initiate the qualification certification process for galley insert products.

Tongwei Co. issued a performance forecast, estimating a first-half loss of 4.8 billion to 5.4 billion yuan. China Southern Airlines, LONGi Green Energy, Huafa Industrial, Air China, China Eastern Airlines, New Hope, Giant Star Animal Husbandry, Shuangliang Energy Conservation, Hongyuan Green Energy, Wingtech Technology, and Aisino Corporation also forecast losses ranging from hundreds of millions to several billion yuan. Sieyuan Information plans to purchase high-performance computing servers for up to 5.079 billion yuan, while Sunway Communication intends to acquire a 55 percent stake in Yiyang Electronic Technology and inject capital to strengthen its high-end MLCC product portfolio. In addition, Hongde Co. signed a procurement framework agreement with a key client, a wholly owned subsidiary of Andawell signed a cooperation memorandum with Airbus, and Cao Long, chairman of Gaoke Technology, along with others, has been placed under criminal investigation.