The Zhitong Finance App learned that CITIC Construction Investment released a research report saying that in the first three quarters of 2026, the communications sector's revenue and net profit to mother increased 6.78% and 8.32% year-on-year respectively, and the Q3 growth rate increased further. Net profit from the test instrument, GPU/ASIC, and cable sectors increased by 1160%, 720%, and 214% respectively in the first three quarters, and the Q3 PCB upstream sector increased 661%. AI computing power and supporting demand continued to release 2026Q3 public fund communications industry's market value of 464.567 billion yuan. The share of holdings remained high, with holdings concentrated on AI optical communication leaders. On October 30, the PE-TTM Communications Index was 34.10 times higher. The early valuation premium was clearly absorbed, and the market paid more attention to performance delivery. North American CSP continues to increase investment in AI infrastructure. The bank has long been optimistic about the North American and domestic AI computing power industry chain, focusing on high-speed optical interconnection, GPU/ASIC, and supporting infrastructure.
CITIC Construction Investment's main views are as follows:
1. The revenue of the communications sector grew steadily, and profitability remained at a high level
In the first three quarters of 2026, the A-share communications sector achieved revenue of 2086.81 billion yuan, an increase of 6.78% year on year; net profit to mother was 211,525 billion yuan, up 8.32% year on year, and profit growth was faster than revenue growth. The overall gross margin of the communications sector in the first three quarters of 2026 was 28.2%, down 0.7 pct year on year, and the net margin was 10.7%, up 0.1 pct year on year.
2. Telecom operators were affected by VAT adjustments, and revenue and profit for the first three quarters were under pressure
The three major operators were affected by VAT adjustments, and revenue and profit declined. In the first three quarters of 2026, the three major operators achieved total revenue of 1457.3 billion yuan, a year-on-year decrease of 1.84%; realized net profit to mother of 145.7 billion yuan, a year-on-year decrease of 12.30%.
3. Profit growth in the test instrument, GPU/ASIC, and cable sectors was outstanding in the first three quarters of 2026, while Q3 PCB upstream sector profits increased sharply
Outstanding net profit performance in the first three quarters of 2026 includes: test instruments, GPU/ASIC, and cable. The top three sectors with net profit growth in 2026Q3 were GPU/ASIC (1,479 billion yuan, up 3342% year on year), test instruments (1,471 billion yuan, up 1929% year on year), and upstream PCB (799 million yuan, up 661% year on year). The growth rate of some sectors was affected by the low base for the same period last year, and needs to be judged comprehensively based on revenue growth and profit scale.
4. The public equity industry maintains a high share of heavy positions, with holdings concentrated on AI optical communication leaders
2026Q3, the market value of public fund communications industry holdings reached 464.567 billion yuan, accounting for 12.90% of industry holdings under the top ten stock holdings, maintaining a high position; Zhongji Xuchuang, Xinyisheng, and Tianfu Communications together account for 70% of the market value of public fund holdings in the communications industry, and the allocation is concentrated on AI optical communication leaders. As of October 30, 2026, the Shenwan Communications Index was 34.10 times the PE-TTM, at the 60.45% quantile in 5 years and 34.93% in 10 years. The early valuation premium was clearly digested, and market attention was further turned towards performance delivery and continued growth.
risk analysis
Changes in the international environment have an impact on the security and stability of the supply chain, affecting the progress of related companies' overseas expansion; the impact of tariffs exceeded expectations; the development of the artificial intelligence industry fell short of expectations, affecting the needs of companies related to cloud computing and computing power industry chains; increased market competition, leading to a rapid decline in gross margin; exchange rate fluctuations affected the exchange earnings and gross profit margin of export-oriented enterprises, including enterprises in the ICT equipment and optical module/optical device sector; the digital economy and digital China's construction fell short of expectations; telecom operators' cloud computing business development fell short of expectations; operators' capital expenditure fell short of expectations; cloud vendors Capital expenditure falls short of expectations; communication module and intelligent controller industry demand falls short of expectations.