Huatai Securities released a third-quarter outlook report for the communications industry, predicting continued performance growth in the AI computing power chain and steady growth for operators. Using its coverage of 38 A-share and H-share companies in the communications sector as a sample, the company projects a 15% year-on-year increase in net profit attributable to shareholders of the communications sector in the third quarter of 2025. Excluding the three major operators and ZTE, the sector's net profit attributable to shareholders is projected to increase by 73% year-on-year. Specifically, telecom operators are expected to see steady profit growth. The optical communications sector is expected to continue delivering strong performance driven by continued high demand in both overseas and domestic markets, and the industry chain's prosperity is expected to continue to spread. IDC, benefiting from growing demand from intelligent computing centers both domestically and internationally, is expected to reach a turning point. The copper connectivity sector is expected to gradually deliver performance as capacity is released, and the optical fiber and cable market is expected to gradually recover.