Event overview:
On February 17, 2022, the four national ministries and commissions jointly issued a notice agreeing to start the construction of National Computing hub nodes in 8 places, including Beijing, Tianjin, Hebei, Yangtze River Delta, Guizhou, Gansu and Ningxia, and the “counting from the east to the west” project was officially launched.
The relay of “counting from the east to the west” ushered in continuous catalysis in the industry
China’s data center construction layout presents a situation of hot in the East and cold in the West. 79% of the existing cabinets and 75% of the new cabinets in 2021 are concentrated in Beijing, Shanghai, Guangzhou, Shenzhen and other Eastern first tier cities and their surrounding areas.
Data is divided into hot data, warm data and cold data from high to low according to the access frequency. The requirements of data storage at different levels are different. According to business types, high-frequency business calls such as online games and financial settlement have high requirements for network delay, while background processing, offline analysis, storage and backup do not have high requirements for network delay. Data and services with low delay requirements are expected to take the lead in moving west.
China West Construction Group Co.Ltd(002302) the data center has many advantages: sufficient energy supply, suitable climate conditions, low electricity price and land cost, sufficient energy consumption indicators, etc.
The implementation of “counting from the east to the west” is conducive to improving the overall computing power of the country on the one hand; On the other hand, it is conducive to promoting green development and driving the development of relevant industries in the West.
Investment advice
Chinese IDC enterprises and industrial chain related enterprises are expected to benefit from:
1) IDC leaders Shanghai Baosight Software Co.Ltd(600845) , Beijing Sinnet Technology Co.Ltd(300383) , Guangdong Aofei Data Technology Co.Ltd(300738) , Shanghai Athub Co.Ltd(603881) , and IDC enterprises Mcc Meili Cloud Computing Industry Investment Co.Ltd(000815) (Ningxia) and Capitalonline Date Service Co.Ltd(300846) (Gansu) with layout in the West.
2) server beneficiary Enterprises: Dawning Information Industry Co.Ltd(603019) , Inspur Electronic Information Industry Co.Ltd(000977) .
3) domestic operating system field: China National Software And Service Company Limited(600536) , Archermind Technology (Nanjing) Co.Ltd(300598) .
4) domestic CPU chip field: China Greatwall Technology Group Co.Ltd(000066) .
5) domestic GPU graphics card field: Changsha Jingjia Microelectronics Co.Ltd(300474) .
Risk tips
The progress of “counting from the east to the west” is less than expected; The market demand is less than expected; The intensification of competition in the industry has led to the decline of enterprise profitability.
