Group 1 - Main capital inflow observed in sectors such as power equipment, electronics, and media, while defense, non-bank financials, and non-ferrous metals experienced capital outflow [1] - Specific stocks with significant net inflow include Yanshan Technology, Unisplendour, and Sungrow Power, attracting net inflows of 4.1 billion, 2.669 billion, and 1.789 billion respectively [1] - Stocks facing notable net outflow include Cambricon, Kweichow Moutai, and China Rare Earth, with net sell-offs of 1.511 billion, 0.954 billion, and 0.769 billion respectively [1]

Group 1 - The A-share market opened with a mixed performance, with sectors such as gaming, new energy, pharmaceuticals, and gold showing positive results, while the technology sector experienced adjustments [1] - The AI ETF (515070) saw a significant increase, with holdings in companies like Unisplendour rising over 10%, and other companies such as Zhongke Chuangda, Junsheng Electronics, and GigaDevice also performing well [1] - The AI ETF's fund size has surpassed 9 billion yuan, with continuous capital inflow for 11 consecutive days [1] Group 2 - CITIC Securities emphasizes that the core of global technological competition lies in computing power, highlighting the urgent need for China to build a self-controlled computing power foundation for its AI industry [1] - The development of the domestic computing power industry chain is considered one of the most certain long-term trends, supported by national policies and investments [1] - The AI ETF tracks the CS AI Theme Index (930713), selecting component stocks that provide technology, basic resources, and applications for AI, focusing on the midstream and upstream of the AI industry chain [1]

Group 1 - The top 20 stocks with significant capital inflow as of September 3 include: Yanshan Technology (2.424 billion), Unisplendour (1.400 billion), Sungrow Power (0.539 billion), and others [1] - Yanshan Technology experienced a price increase of 10.04%, with a capital inflow of 2.424 billion [2] - Unisplendour saw a price rise of 6.64% and attracted 1.400 billion in capital [2] Group 2 - Sungrow Power had a price increase of 6.98% with a capital inflow of 0.539 billion [2] - Jishi Media reported a price rise of 9.94% and received 0.466 billion in capital [2] - Heng Rui Medicine experienced a 4.14% increase in price with a capital inflow of 0.417 billion [2] Group 3 - The stock with the highest capital inflow, Yanshan Technology, is categorized under Internet Services [2] - Other notable sectors include Photovoltaic Equipment (Sungrow Power), Cultural Media (Jishi Media), and Chemical Manufacturing (Heng Rui Medicine) [2][3] - The banking sector, represented by Agricultural Bank, saw a slight decline of 0.28% with a capital inflow of 0.170 billion [3]

Core Viewpoint - The company reported strong revenue growth in the first half of 2025, driven by significant increases in its government and enterprise sectors, as well as international business expansion [1][2]. Financial Performance - In 1H25, the company achieved revenue of 47.425 billion yuan, a year-on-year increase of 24.96%, and a net profit attributable to shareholders of 1.041 billion yuan, up 2.19% [1]. - For Q2 2025, revenue reached 26.635 billion yuan, reflecting a year-on-year growth of 27.17%, while net profit was 0.692 billion yuan, increasing by 18.01% [1]. Business Analysis - The subsidiary, Xinhua San, experienced substantial revenue growth, with government and enterprise revenue approximately 18.78 billion yuan in Q2 2025, marking a year-on-year increase of 66% and a quarter-on-quarter increase of 53% [2]. - International business revenue was 0.87 billion yuan, showing a year-on-year growth of 48%, although it decreased by 17% quarter-on-quarter [2]. - The increase in government enterprise revenue is attributed to heightened demand for AI servers from internet clients and a rising proportion of revenue from 400G/800G high-speed switches [2]. - The company's gross margin in Q2 2025 decreased by 0.77 percentage points, primarily due to the higher proportion of lower-margin AI server sales [2]. Cost Management - The company demonstrated improved cost control, with both sales and management expense ratios declining quarter-on-quarter [3]. - The domestic AI chip replacement is accelerating, positioning the company to benefit from the increased adoption of domestic AI chips in its server business [3]. - The company reported a 66% year-on-year increase in contract liabilities in Q2 2025, laying a solid foundation for future revenue growth [3]. Market Position and Outlook - The company holds a 31.1% market share in the Ethernet switch market, ranking second overall, and is expected to achieve breakthroughs in the Scale-up domain due to strong demand for high-performance switches [3]. - The company is proactively launching new products, including the H3C S9825-8C-G 800G data center intelligent computing switch, which utilizes over 95% domestic components [3]. - The long-term outlook for the Scale-up Ethernet switch market is positive, driven by increasing demand for ultra-low latency and high throughput solutions [3]. Profit Forecast and Valuation - Revenue projections for 2025-2027 are estimated at 90.84 billion yuan, 103.59 billion yuan, and 114.75 billion yuan, with year-on-year growth rates of 15%, 14%, and 11% respectively [5]. - Expected earnings per share (EPS) for the same period are 0.74 yuan, 0.88 yuan, and 1.03 yuan, with price-to-earnings (PE) ratios of 38, 32, and 27 times [5].

Market Performance - The WiFi 6 concept sector experienced a decline of 5.15%, ranking among the top losers in the market [1] - Key stocks within the sector, such as StarNet Ruijie and Cambridge Technology, hit the daily limit down, while others like Lexin Technology and Ruijie Network also saw significant declines [1] Capital Flow - The WiFi 6 sector faced a net outflow of 5.017 billion yuan, with 51 stocks experiencing net outflows, and 15 stocks seeing outflows exceeding 100 million yuan [2] - Cambridge Technology led the outflow with 748 million yuan, followed by Unisplendour and Oulu Tong with outflows of 454 million yuan and 432 million yuan, respectively [2] Stock Performance - Notable stocks with significant declines include: - Cambridge Technology: -9.99% with a turnover rate of 16.56% and a net outflow of 748.2 million yuan [2] - Unisplendour: -5.78% with a turnover rate of 5.31% and a net outflow of 454.3 million yuan [2] - Oulu Tong: -11.14% with a turnover rate of 9.52% and a net outflow of 432 million yuan [2] ETF Overview - The Food and Beverage ETF (product code: 515170) saw a recent decline of 0.65% with a net outflow of 30.86 million yuan [5] - The Gaming ETF (product code: 159869) increased by 1.72% but had a net outflow of 643.65 million yuan [5] - The Semiconductor ETF (product code: 588170) rose by 3.70% with a net inflow of 5.4 million yuan [5] - The Cloud Computing ETF (product code: 516630) increased by 5.37% but experienced a net outflow of 743.6 million yuan [6]

Core Viewpoint - On September 2, Unisplendour Corporation experienced a decline of 5.02%, with a stock price of 27.63 yuan per share, a trading volume of 2.671 billion yuan, a turnover rate of 3.31%, and a total market capitalization of 79.024 billion yuan [1] Company Overview - Unisplendour Corporation, established on March 18, 1999, and listed on November 4, 1999, is located in Haidian District, Beijing, and primarily engages in IT services and value-added distribution of information electronic products. The company’s main business revenue is entirely derived from the information technology sector, accounting for 100% [1] Shareholder Analysis - Among the top ten circulating shareholders of Unisplendour, Huatai-PB Fund's Huatai-PB CSI 300 ETF (510300) reduced its holdings by 1.6992 million shares in the second quarter, now holding 35.7505 million shares, which represents 1.25% of the circulating shares. The estimated floating loss today is approximately 52.1958 million yuan [2] - The Huatai-PB CSI 300 ETF was established on May 4, 2012, with a current scale of 374.704 billion yuan. Year-to-date returns are 17.41%, ranking 2785 out of 4222 in its category; the one-year return is 39.31%, ranking 2308 out of 3781; and since inception, the return is 110.08% [2] Fund Performance - The fund manager of Huatai-PB CSI 300 ETF is Liu Jun, who has been in the position for 16 years and 95 days. The total asset scale of the fund is 466.972 billion yuan, with the best return during his tenure being 138% and the worst being -45.64% [3] Top Holdings - Huatai-PB Fund's Cloud Computing ETF (159738) also holds a significant position in Unisplendour, having reduced its holdings by 275,600 shares in the second quarter, now holding 748,400 shares, which constitutes 3.15% of the fund's net value. The estimated floating loss today is around 1.0927 million yuan [4] - The Cloud Computing ETF was established on January 18, 2022, with a current scale of 570 million yuan. Year-to-date returns are 74.83%, ranking 82 out of 4222 in its category; the one-year return is 151.28%, ranking 17 out of 3781; and since inception, the return is 86.05% [4] Fund Manager Profile - The fund manager of the Cloud Computing ETF is Li Qian, who has been in the role for 5 years and 304 days. The total asset scale of the fund is 39.351 billion yuan, with the best return during her tenure being 106.55% and the worst being -18.35% [5]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][4][12] Core Views - The company has shown impressive performance, benefiting significantly from the development of domestic clusters, with a revenue increase of 24.96% year-on-year in H1 2025, reaching 474.25 billion yuan [4][5] - The company's subsidiary, H3C, achieved a revenue of 364 billion yuan in H1 2025, marking a 37.7% year-on-year growth, with domestic and overseas enterprise business revenues increasing by 53.6% and 60.3% respectively [4][5] - The company is expected to continue benefiting from the ongoing development of AIGC, with anticipated growth in demand for AI servers, high-speed switches, and super nodes [4][5] - The company has a projected net profit of 25.67 billion yuan, 29.58 billion yuan, and 35.80 billion yuan for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 32.4, 28.1, and 23.2 [4][5] Financial Performance - In Q2 2025, the company reported a revenue of 266.35 billion yuan, a year-on-year increase of 27.17%, and a net profit of 6.92 billion yuan, up 18.01% year-on-year [4][5] - The company's ICT infrastructure and services business revenue reached 360.42 billion yuan in H1 2025, reflecting a 37.80% year-on-year growth [5] - The company has submitted an application for H-share listing, aiming to issue no more than 10% of the total share capital post-issue, which is expected to enhance its international brand influence and support R&D and acquisition funding [6] Market Position and Strategy - The company has established 22 overseas subsidiaries across Asia, Europe, Africa, and Latin America, serving over 180 countries and regions, with more than 3,300 overseas partners [6] - The launch of the UniPoD super node and 800G domestic switches is expected to significantly enhance the efficiency of training and inference for large-scale models, positioning the company favorably in the domestic computing cluster market [5]

Group 1 - The CPO concept sector leads the market with an increase of 3.09% [1] - Huagong Technology rises by 7.88% [1] - Unisplendour Corporation increases by 6.88% [1] - Zhongji Xuchuang sees a rise of 6.76% [1] - Tongfu Microelectronics, Changdian Technology, and Guangxun Technology all rise over 5% [1]

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Insights - The company reported revenue and profit exceeding expectations, with ICT infrastructure and services revenue increasing to 76% of total revenue [1] - The subsidiary, H3C, experienced significant revenue growth driven by government and enterprise business, with a 37.75% year-on-year increase [2] - The company is expected to increase its market share in AI servers, supported by a substantial rise in inventory and contract liabilities [3] - The company continues to deepen its "AI in ALL" strategy, achieving high growth in overseas markets and launching new AI products [4] - Profit forecasts for the company indicate a steady increase in net profit from 21.4 billion to 31.3 billion from 2025 to 2027 [5] Summary by Sections Financial Performance - In the first half of 2025, the company achieved operating revenue of 474.25 billion, a year-on-year increase of 24.96%, with net profit reaching 10.41 billion, up 4.05% [1] - The second quarter of 2025 saw a revenue of 266.35 billion, reflecting a 27.17% year-on-year growth [1] Business Segments - H3C's revenue for the first half of 2025 was 364.04 billion, with domestic government and enterprise business growing by 53.55% [2] - The company is expected to benefit from increased capital expenditure in AI infrastructure by leading domestic internet companies [2] Inventory and Liabilities - As of June 2025, the company's inventory reached 438 billion, an increase of 70 billion from the end of 2024, indicating a potential increase in AI GPU chip stock [3] - Contract liabilities also rose to 159 billion, suggesting strong future revenue potential [3] Strategic Initiatives - The company launched new AI products that significantly enhance training and inference efficiency, and it continues to expand its global presence [4] - Strategic partnerships have been established with leading ISVs in various countries to enhance its international market reach [4] Profit Forecasts - The company forecasts net profits of 21.4 billion, 28.1 billion, and 31.3 billion for 2025, 2026, and 2027, respectively, with corresponding PE ratios decreasing from 37 to 25 [5]

Group 1: Company Overview and Market Context - The international situation remains complex, adding uncertainty to the market, while the domestic economy shows strong resilience and continuous optimization of industrial structure [3] - The AI industry is experiencing rapid growth with innovations in large models and generative AI, driving high-quality development [3] - The company focuses on "computing power × connectivity" advantages, emphasizing intelligent computing technology and scenario-based applications [3] Group 2: Financial Performance - In the first half of 2025, the company achieved revenue of 474.25 billion yuan, a year-on-year increase of 24.96% [3] - The net profit attributable to shareholders was 10.41 billion yuan, with a year-on-year growth of 4.05% [3] - The second quarter saw revenue of 266.35 billion yuan, up 27.17% year-on-year and 28.12% quarter-on-quarter [3] Group 3: Product Development and Innovations - The company launched the UniPoD S80000 super node, improving training efficiency by 25% and inference efficiency by 63% compared to previous models [4] - New high-density liquid cooling solutions were introduced, supporting 64 high-performance AI accelerator cards or thousand-core CPUs [4] - The company released a new generation of lossless network solutions, enhancing effective bandwidth by 107% [4] Group 4: Market Expansion and Strategic Partnerships - The company is actively participating in digital transformation projects across various industries, including internet, finance, and smart manufacturing [5] - It has established strategic partnerships with leading software developers in countries like Germany and Kazakhstan to create customized solutions for international markets [7] - The company is expanding its presence in Southeast Asia, the Middle East, and Europe, with significant projects in Saudi Arabia and the UAE [9] Group 5: Future Outlook and Financial Strategy - The company plans to optimize its capital structure and reduce financial costs through communication with banks and replacing high-interest loans [10] - It has submitted applications for a public offering in Hong Kong, currently awaiting approval from regulatory bodies [10]