Core Insights - Guangdong has issued a total of 105 generative AI service registrations, ranking second in the country, with the latest batch including 11 new services across various sectors such as education, media, commercial real estate, and cross-border e-commerce [1][2][5] Policy Support - The policy framework in Guangdong is designed to foster an environment where AI can innovate freely while ensuring safety, transforming regulatory requirements into developmental momentum [1][5] - The establishment of the Guangdong-Hong Kong-Macao Greater Bay Area Generative AI Safety Development Joint Laboratory aims to support compliance and safety standards, thereby reducing compliance costs for enterprises [5][6] Enterprise Dynamics - The registration process serves as both a compliance entry ticket and a market trust certificate, indicating that companies can convert technological advantages into compliant products [7][8] - The AI industry in Guangdong has surpassed 220 billion yuan in scale, with over 1,500 core enterprises and 147 national-level specialized "little giant" companies, the highest in the country [7] Industry Landscape - The 105 registered models reflect a balanced structure of general and vertical models, with 54 industry-specific models and 51 general models covering various fields such as government, education, transportation, and agriculture [8][9] - The AI models are increasingly integrated into the real economy, with applications in education, smart home devices, and industrial sectors, showcasing the inclusive value of AI technology [9][10] Future Outlook - The joint laboratory plans to establish local service stations in cities like Hong Kong, Macau, Guangzhou, and others to provide policy consultation and technical evaluation services, enhancing regional collaboration in AI development [10][11] - The registration of 105 models marks a significant milestone in Guangdong's AI industry, indicating a shift towards a more controlled, active, and efficient AI ecosystem [11]

Core Viewpoint - Deepin Technology Co., Ltd. is a leading domestic player in network security and cloud computing, showcasing strong technical capabilities and market competitiveness in the information security sector [1] Group 1: Business Performance - In Q3 2025, Deepin reported revenue of 5.125 billion yuan, ranking 4th among 35 companies in the industry, with the top competitor, iFlytek, generating 16.989 billion yuan [2] - The net profit for the same period was -80.5638 million yuan, placing the company 22nd in the industry, while the leading company, Kingsoft Office, achieved a net profit of 1.164 billion yuan [2] - Revenue growth for the first three quarters of 2025 was 10.62%, while net profit showed a significant increase of 86.10% [6][7] Group 2: Financial Ratios - As of Q3 2025, Deepin's asset-liability ratio was 38.13%, higher than the industry average of 29.42% [3] - The company's gross profit margin was 60.94%, which is below the industry average of 63.59% [3] Group 3: Shareholder Information - As of September 30, 2025, the number of A-share shareholders increased by 11.92% to 30,900, while the average number of circulating A-shares held per shareholder decreased by 10.65% [5] Group 4: Management and Compensation - The chairman, He Chaoxi, received a salary of 398,000 yuan in 2024, reflecting a slight increase from 395,800 yuan in 2023 [4] Group 5: Market Position and Future Outlook - Deepin maintains a leading position in the domestic hyper-converged market with market shares of 15.9% and 26.5% in the overall and full-stack hyper-converged markets, respectively [7] - The company is expected to benefit from the growing demand for AI localization deployment, with projected revenues for 2025, 2026, and 2027 at 8.234 billion, 9.166 billion, and 10.340 billion yuan, respectively [6][7]

Core Viewpoint - The report from Dongfang Securities indicates that Deepin Technology achieved a significant improvement in net profit for the first three quarters, with a net profit of -0.81 billion (+86.10%), and a remarkable net profit of 1.47 billion in Q3 (+1097.40%), attributed to effective cost control [1] Group 1: Financial Performance - Deepin Technology's net profit for the first three quarters was -0.81 billion, reflecting an increase of 86.10% [1] - In Q3 alone, the company reported a net profit of 1.47 billion, marking a staggering increase of 1097.40% [1] Group 2: Strategic Focus - The company's overall R&D strategy is shifting towards AI intelligence, with the integration of AI-related technologies and capabilities across various products, including security GPT, AICP, AIPaaS, SAVE3.0, and AIOps [1] - The introduction of the "HCI + AICP next-generation super copy selection second transfer data fusion" solution allows users to quickly deploy and support enterprise-level large models like DeepSeek by adding just one GPU node to their existing cluster [1] Group 3: Market Position and Valuation - The company is expected to benefit significantly from the growing demand for localized deployment of large models due to its strong product innovation capabilities and comprehensive channel advantages [1] - Based on the comparable company's 25-year PS level, the company maintains a target price of 119.00 yuan, corresponding to a 25-year PS of 6.10 times, and retains a "buy" rating [1]

Group 1 - Over 7.6 billion in main capital has flowed into the software development industry, making it the second-highest sector in terms of capital inflow among all Shenwan secondary industries [1] - The Xinchuang ETF (562030), which heavily invests in the software development sector, has seen an increase of 2.14% in its market price, indicating strong buying momentum with a real-time premium rate of 0.37% [1] - Key stocks such as 360 and Foxit Software have hit the daily limit, while companies like Deepin, Qi Anxin, and Star Ring Technology have also shown significant gains [1] Group 2 - According to QuestMobile, the number of active mobile users in China's AI application sector has surpassed 700 million [3] - CITIC Securities notes that major companies like OpenAI and Google have updated their large model capabilities, which is beneficial for the implementation of AI applications, suggesting a potential turning point for domestic AI applications [3] - Huatai Securities highlights a shift in the AI industry from competition in large model technology to the penetration of application scenarios, recommending focus on cloud infrastructure service providers and advertising/vertical application sectors [3] Group 3 - Dongguan Securities indicates that the Xinchuang industry is progressing steadily with a dual drive of policy and market, expecting market growth rates of 17.84% and 26.82% in 2025 and 2026, respectively, with the market size projected to exceed 2.6 trillion yuan by 2026 [4] - The expansion of special government bonds and the implementation of debt reduction plans provide financial support for Xinchuang procurement, with detailed government procurement standards further solidifying the replacement pace [4] Group 4 - The Xinchuang ETF (562030) and its linked funds are designed to track the CSI Xinchuang Index, covering core segments of the Xinchuang industry chain, which includes hardware, software, application software, information security, and external devices [7] - The index is characterized by high growth and elasticity, with four key investment rationales: geopolitical disturbances necessitating self-control, increased local debt efforts, breakthroughs in technology by domestic manufacturers, and the critical timing of Xinchuang advancement [7]

Group 1: ETF Performance and Market Trends - The software ETF experienced a turnover of 7.16% during trading, with a transaction volume of 410 million yuan [3] - Over the past month, the software ETF's scale increased by 615 million yuan, indicating significant growth [3] - In the last 16 trading days, the software ETF attracted a total of 831 million yuan in inflows [3] - As of October 30, the software ETF's net value has risen by 12.61% over the past three years [3] - The highest monthly return since inception was 39.35%, with the longest consecutive monthly gains being three months and a maximum increase of 69.40% [3] - The average return during the months of increase was 10.06% [3] Group 2: Software Industry Performance - According to the Ministry of Industry and Information Technology, the software and information technology service industry in China showed a positive performance in the first three quarters of 2025, with software business revenue reaching 1111.26 billion yuan, a year-on-year increase of 13.0% [3] - The total profit of the software industry was 143.52 billion yuan, reflecting a year-on-year growth of 8.7% [3] - Software business exports amounted to 45.94 billion USD, marking a year-on-year increase of 6.6% [3] - Software product revenue maintained stable growth, reaching 238.54 billion yuan in the first three quarters, a year-on-year increase of 10.9%, accounting for 21.5% of the total industry revenue [3] - Basic software product revenue was 13.83 billion yuan, up 11.2% year-on-year, while industrial software product revenue was 23.59 billion yuan, reflecting a 9.8% increase [3] Group 3: Future Outlook and Investment Opportunities - Longjiang Securities noted that in the context of intensified Sino-U.S. technology competition, achieving complete autonomy in key areas is essential for China's technological development [4] - The domestic software systems have gradually developed innovative capabilities, transitioning from "usable" to "user-friendly" [4] - As key policy assessment years (such as 2025 and 2027) approach, the domestic chip and operating system industries related to the Xinchuang industry are expected to benefit [4] - As of September 30, 2025, the top ten weighted stocks in the CSI Software Service Index included companies like iFLYTEK, Tonghuashun, and Kingsoft Office, collectively accounting for 62.41% of the index [4] - Investors can also consider the software ETF linked fund (012620) to capitalize on AI software investment opportunities [4]

Core Viewpoint - The digital economy theme index has shown fluctuations, with specific stocks performing variably, while the government supports mergers and acquisitions in strategic emerging industries [1][2]. Group 1: Digital Economy Index Performance - As of October 31, 2025, the CSI Digital Economy Theme Index (931582) decreased by 1.44% [1]. - Leading stocks included Deepin Technology (300454) with a rise of 6.51%, while Lattice Technology (688008) led the decline with a drop of 7.24% [1][4]. - The digital economy ETF (560800) experienced a turnover of 1.41% during the trading session, with a total transaction value of 9.5176 million yuan [1]. Group 2: Market Trends and Government Support - The Beijing municipal government has issued opinions to support mergers and acquisitions aimed at promoting high-quality development of listed companies, focusing on strategic emerging industries [1]. - Key sectors for development include artificial intelligence, healthcare, integrated circuits, smart connected vehicles, cultural industries, and renewable energy [1]. Group 3: ETF and Index Composition - The digital economy ETF closely tracks the CSI Digital Economy Theme Index, which includes companies with high digitalization levels [2]. - As of September 30, 2025, the top ten weighted stocks in the index accounted for 54.31% of the total index weight, with Dongfang Fortune (300059) being the highest at 8.64% [2].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 119.00 CNY based on a 6.10x PS multiple for 2025 [3][5]. Core Insights - The company has shown continuous profit improvement, with AI presenting new growth opportunities [2]. - The company’s revenue for the first three quarters of 2025 reached 5.125 billion CNY, reflecting a year-on-year growth of 10.62%, while the net profit attributable to the parent company was -0.081 billion CNY, up 86.10% [8]. - The company is implementing an "AI FIRST" R&D strategy, enhancing product differentiation and competitiveness through AI technologies [8]. Financial Performance Summary - Revenue projections for 2025-2027 are 82.34 billion CNY, 91.66 billion CNY, and 103.40 billion CNY respectively, with expected growth rates of 9.5%, 11.3%, and 12.8% [3][4]. - The company’s gross margin is projected to stabilize around 61.2% to 61.6% from 2025 to 2027, while net profit margins are expected to improve from 4.0% in 2025 to 5.9% in 2027 [4][11]. - The company’s operating profit is forecasted to grow significantly, with an increase from 357 million CNY in 2025 to 650 million CNY in 2027, representing a growth rate of 68.8% in 2025 [4][11]. Market Position and Strategy - The company is well-positioned to benefit from the rising demand for localized AI deployment solutions, having launched innovative products that integrate AI capabilities [8]. - The report highlights the company's strong product innovation capabilities and its comprehensive channel advantages, which are expected to drive growth in the localized deployment market [8].

Investment Rating - The report maintains an "Accumulate-A" rating for the company [1][7] Core Views - The company has shown a significant improvement in net profit and accelerated revenue growth in the latest quarter, driven by robust performance in its cloud business and effective cost management [4][5] - The company is positioned as a leader in the domestic network security and cloud computing sectors, with expectations for rapid growth in cloud services due to the surge in AI demand [7] Financial Performance Summary - For the first three quarters of 2025, the company achieved revenue of 5.125 billion yuan, a year-on-year increase of 10.62%, while the net profit attributable to shareholders was -81 million yuan, reflecting an 86.10% increase year-on-year [4] - In Q3 2025, the company reported revenue of 2.116 billion yuan, a 9.86% year-on-year growth, and a net profit of 147 million yuan, marking a staggering 1097.40% increase year-on-year [4] - The gross margin for the first three quarters of 2025 was 60.94%, up 0.33 percentage points from the same period last year [4] - The company's operating cash flow improved from -731 million yuan in the previous year to 13 million yuan, primarily due to increased sales receipts and reduced payments for raw materials [4] Business Segment Performance - The company's hyper-converged infrastructure (HCI) and distributed storage (EDS) businesses are key growth drivers, with HCI maintaining a leading market share of 15.9% in the overall domestic market and 26.5% in the full-stack HCI market [5] - Over 600 central and state-owned enterprises have adopted the company's hyper-converged products for domestic transformation, with significant deployments reported [5] Earnings Forecast and Valuation - The projected earnings per share (EPS) for 2025, 2026, and 2027 are 1.23 yuan, 1.88 yuan, and 2.45 yuan, respectively, with corresponding price-to-earnings (P/E) ratios of 93.1, 61.0, and 46.8 [7][8] - The company is expected to see a revenue increase from 8.51 billion yuan in 2025 to 10.90 billion yuan in 2027, with a compound annual growth rate (CAGR) of 14.1% [8]

Core Viewpoint - The stock of Deepin Technology has shown significant volatility, with a year-to-date increase of 104.05% and a recent 5-day increase of 11.02%, indicating strong market interest and potential growth in the information security sector [1][2]. Financial Performance - For the period from January to September 2025, Deepin Technology achieved a revenue of 5.125 billion yuan, reflecting a year-on-year growth of 10.62%. However, the company reported a net profit attributable to shareholders of -805.638 million yuan, which is an increase of 86.10% compared to the previous year [2]. Stock Market Activity - As of October 30, the stock price of Deepin Technology was 117.00 yuan per share, with a market capitalization of 49.36 billion yuan. The trading volume was 271 million yuan, with a turnover rate of 0.85% [1]. - The company has seen a net outflow of 2.4477 million yuan in principal funds, with large orders accounting for 18.81% of purchases and 17.93% of sales [1]. Shareholder Information - As of September 30, 2025, the number of shareholders increased by 11.92% to 30,900, with an average of 9,008 shares per shareholder, a decrease of 10.65% [2]. - The top ten circulating shareholders include Hong Kong Central Clearing Limited, which holds 12.9537 million shares, a decrease of 460,400 shares from the previous period [3]. Dividend Distribution - Since its A-share listing, Deepin Technology has distributed a total of 297 million yuan in dividends, with 47.0074 million yuan distributed over the past three years [3].

Core Insights - The article discusses the allocation and performance of public funds in the computer industry, highlighting the absolute and relative configuration ratios of various stocks held by funds [2][6][10]. Group 1: Absolute Allocation of Public Funds - The absolute allocation ratio of public funds in the computer industry shows significant percentages for top holdings, with the highest being 13.36% [3]. - The data indicates a diverse range of allocation percentages among the top stocks, with several stocks holding between 4% to 6% of the total allocation [3][4]. Group 2: Relative Allocation of Public Funds - The relative allocation ratio reveals the most held stocks by the number of funds, with Industrial Fulian and Kingsoft Office being the most prominent [6][10]. - The market value held by funds also highlights key stocks, with Industrial Fulian and Kingsoft Office leading in total market value held [10][11]. Group 3: Fund Holdings and Changes - The top twenty stocks by fund holdings include notable companies such as Industrial Fulian, Kingsoft Office, and Deepin Technology, indicating strong investor interest [9][10]. - The article also notes which stocks have seen the most significant increases in fund holdings, with Industrial Fulian and Fangzheng Technology among the top gainers [9][10].