Hygon Information Technology (SH:688041) Ping An Securities·2025-06-11 00:55Group 1: Key Recommendations - The report highlights that Haiguang Information (688041.SH) is a core player in the domestic computing chip sector, while Zhongke Shuguang leads in server systems. Their merger will create a closed-loop layout for the computing industry chain, maximizing resource utilization and enhancing industry competitiveness. The projected net profits for Haiguang Information from 2025 to 2027 are estimated at CNY 2.956 billion, CNY 4.314 billion, and CNY 6.153 billion, with corresponding PE ratios of 111.7X, 76.5X, and 53.6X based on the closing price on June 10, 2025 [2][9][10] - Beike-W (2423.HK) is recognized as a leading integrated real estate transaction service platform, with significant advantages in real estate brokerage. The company is expected to benefit from policy support for market recovery, with projected EPS for 2025 to 2027 at CNY 1.58, CNY 1.83, and CNY 2.11, corresponding to PE ratios of 28.7X, 24.8X, and 21.5X. The report gives a "recommend" rating for the stock [2][11][12] Group 2: Company Overview - Haiguang Information is a leading high-end processor design company in China, having developed various high-end processor products widely used in data centers across telecommunications, finance, and internet sectors. Zhongke Shuguang is a leading enterprise in high-end computing, focusing on high-end computers, storage, and data centers. The merger will enable Haiguang Information to achieve a closed-loop layout from high-end chip design to high-end computer systems, enhancing its competitive edge in the industry [8][9][10] - Beike has established a robust position in the real estate brokerage market, with a significant market share in both existing and new home transactions. The company’s "true housing source" standard and ACN network address service quality issues, creating a unique competitive advantage. The projected total transaction volume for 2024 is CNY 3.3 trillion, with net revenue reaching CNY 934.6 billion, marking a historical high [11][12] Group 3: Industry Insights - The computing industry is undergoing a transformation with a focus on domestic chip production and intelligent computing infrastructure. The merger of Haiguang Information and Zhongke Shuguang is expected to accelerate the localization of the computing industry in China, enhancing the overall competitiveness of the sector [8][9] - The real estate market is showing signs of recovery, supported by policy measures. Beike's diversified business model, including home decoration and rental services, positions it well for future growth. The company is expected to leverage its brokerage strength to drive growth in its ancillary services [11][12]