UCAP(SH:688228) Xin Lang Cai Jing·2025-10-10 12:29Core Viewpoint - The company is positioned as a leader in the domestic AI digitalization sector, acquiring Jintaike to enter the storage business, with expectations of exceeding performance growth due to a long-term boom in the storage chip industry and synergies from AI and energy businesses [1] Investment Highlights - Initial coverage with an "Overweight" rating, as the combination of storage chips, AI computing power, and energy is expected to drive growth, with the acquisition of Jintaike potentially opening up a growth curve in AI storage. If the acquisition is successful, projected revenues for the company's traditional business from 2025 to 2027 are estimated at 719 million, 953 million, and 1.191 billion yuan respectively, while Jintaike's revenues are expected to be 3.840 billion, 7.200 billion, and 10.000 billion yuan. The company is assigned a 175x PE for traditional business and an 80x PE for Jintaike's storage business, leading to a reasonable valuation of 20.223 billion yuan and a target price of 299.52 yuan per share [2] - Significant recovery in profitability in H1 2025, with R&D investments strengthening the technological moat. After a short-term performance pressure in 2024, H1 2025 revenue is expected to be approximately 160 million yuan, a year-on-year increase of 2.99%, with a net profit of approximately 3.78 million yuan, a substantial increase of 123%, successfully turning a profit. The AI computing power and large model business performed exceptionally well, with 2024 revenue projected at 124 million yuan, a year-on-year increase of 949.4% [2] AI Computing Power and Digital Energy Product System - The company has established a product system for AI computing power and digital energy, with government and content security solidifying its industry implementation capabilities. In 2024, digital energy revenue is expected to reach 305 million yuan, accounting for 49.3% of total revenue, while AI computing power and large model revenue is projected at 124 million yuan, making up 20.0% of total revenue. The company signed contracts for the Western Computing Center project early in 2024, with products like "KAIWU" industry large models and integrated machines being delivered in multiple locations. The virtual power plant smart control platform is operational at various administrative levels, and a technology research center has been established in collaboration with North China Electric Power University. The AI content security service "Jiumozhi" continues to serve central ministries and large enterprise clients [3] Acquisition of Jintaike and Storage Business - The acquisition of Jintaike aims to enhance AI storage capabilities, providing both scale and profit elasticity. Jintaike's storage business is projected to achieve revenues of 2.366 billion yuan and a net profit of 136 million yuan in 2024, with advantages in enterprise-level DDR4 and domestic DDR5 products, serving clients like Lenovo, Tongfang, and Haier. Major storage giants such as Samsung, Hynix, and Micron are expected to initiate production cuts starting at the end of 2024, with a 10%-15% capacity reduction planned for the first half of 2025, gradually phasing out older products. Demand from data centers and AI server enterprises is becoming dominant, driving both an increase in storage volume and quality, with significant enhancements in memory capacity and performance requirements. The demand for DDR5 and enterprise-level SSDs is expected to sustain long-term growth, with old products being phased out and high-end capacity becoming scarce, indicating a potential increase in both volume and price for the company's storage business orders [4]