The supply side and demand side are developing well, and the domestic x86 ecosystem continues to evolve. With the promotion of industry information innovation and the construction of East digital West computing, the domestic basic computing power ecology has gradually improved, which is reflected in the x86 ecological perspective. 1) on the supply side, haiguang information revenue has continued to grow at a high level, the product series has been updated and iterated orderly, and the process of marketization has also continued to advance; 2) On the demand side, the proportion of customers in key industries in the downstream continued to increase, the large-scale centralized purchase orders related to the industry continued to be disclosed, and the construction of projects related to East data and West calculation was started. We believe that the healthy and sound development of domestic x86 ecology on the supply side and demand side is expected to enter a new stage, thus becoming one of the important pillars leading the domestic basic computing industry.
The revenue of haiguang information continues to grow, the products and technologies realize orderly iteration, and the downstream customers are constantly enriched. Haiguang information is a representative enterprise of domestic x86 ecology. The first and second generation products of its CPU have been successfully mass produced and commercialized. The third generation products are expected to be mass produced in 2022, and the fourth generation is also in the process of R & D. Moreover, the company has formed a 7000 series, 5000 Series and 3000 Series CPU product matrix, covering high, medium and low-end computing power fields respectively, meeting the computing power needs of different scenarios and specifications. The intergenerational upgrading not only leads to the increase of the average price and gross profit margin of products, but also promotes the further promotion and application of products in key industry markets (such as finance and Telecommunications), driving the growth rate of the company’s revenue to maintain a high level. The growth rate of revenue in 2020 and 2021 is more than 100%, the scale of revenue in 2021 exceeds 2 billion yuan, and the net profit attributable to the parent and non net profit deducted have become positive. In the field of DPU, the first generation of DCU deep computing has contributed revenue, and the second generation of deep computing is also in the research and development stage.
The industry’s Xinchuang centralized purchase orders continue to be disclosed, and x86 ecology and Kunpeng ecology jointly occupy an important position. On February 25, China Telecom Corporation Limited(601728) released the bid winning status of 20212022 server centralized procurement project. Among them, G series is domestic chip server, equipped with Kunpeng, haiguang or Feiteng chips, with a total of 53401 servers; On February 17, the official website of China Mobile announced the bid winning results of package 8 and package 13 of 20212022pc server centralized procurement project, including 28000 servers and 3775 servers, with a bid winning amount of about 2.5 billion yuan; Previously, on January 14, 2022, China Mobile announced the bid winning announcement of bid packages 3, 7, 11 and 12, including ZTE, Zhongke controllable and other companies, with a total bid winning amount of 1.3 billion yuan. We believe that the promotion of credit innovation in the financial industry and the operator industry is expected to enter a new stage in 2022, and domestic servers and related ecological manufacturers are expected to obtain development opportunities.
The East digital West computing project is launched, and the domestic computing ecology is expected to participate in it. On February 17, the national development and Reform Commission, the central network information office, the Ministry of industry and information technology and the National Energy Administration jointly issued a notice, agreeing to start the construction of National Computing hub nodes in 8 places, including Beijing, Tianjin and Hebei, the Yangtze River Delta, Guangdong, Hong Kong, Macao, Dawan District, Chengdu and Chongqing, Inner Mongolia, Guizhou, Gansu and Ningxia, and planned 10 national data center clusters. So far, the overall layout design of the national integrated big data center system has been completed, and the “counting from the east to the west” project has been officially launched. In some hubs in the East and West, such as Chengdu Chongqing hub, domestic x86 ecology is also expected to participate directly as an important technical support, so as to obtain broader development opportunities.
Investment proposal and investment object
1) it is suggested to pay attention to domestic x86 Ecology: Dawning Information Industry Co.Ltd(603019) ( Dawning Information Industry Co.Ltd(603019) , buy), haiguang information (to be listed).
2) pay attention to the enterprises related to the upstream industry chain of chips, Jiangsu Eazytec Co.Ltd(688258) ( Jiangsu Eazytec Co.Ltd(688258) , not rated). Both x86 and Kunpeng ecology are important components of the industry’s information innovation. It is suggested to pay attention to the manufacturer of Kunpeng complete machine Digital China Group Co.Ltd(000034) ( Digital China Group Co.Ltd(000034) , not rated) and the integrator of information innovation system in the financial industry Digital China Information Service Company Ltd(000555) ( Digital China Information Service Company Ltd(000555) , buy).
Risk tips
The implementation of relevant policies is less than expected, the risk of changes in the external international situation, and the R & D is less than expected
