FII(SH:601138) Haitong Securities International·2025-08-15 09:36Investment Rating - The report assigns an "Outperform" rating for the company, indicating an expected total return over the next 12-18 months that exceeds the relevant market benchmark [19]. Core Insights - In the first half of 2025, the company achieved operating revenue of 360.76 billion yuan, a year-on-year growth of 35.58%, and net profit attributable to shareholders of 12.113 billion yuan, up 38.61% year-on-year, both hitting new historical highs for the same period [8][12]. - The second quarter saw revenue surpassing 200 billion yuan for the first time, reaching 200.345 billion yuan with a 35.92% year-on-year increase, while net profit surged 51.13% year-on-year to 6.883 billion yuan, significantly exceeding market expectations [8][9]. - The company's performance is driven by the growing demand for AI computing, with a net profit margin rising to 3.36% through scale effects and cost control [8][12]. Summary by Sections Revenue and Profit Growth - The company reported a significant increase in revenue and net profit, with Q2 revenue reaching 200.345 billion yuan, marking a 35.92% year-on-year growth, and net profit at 6.883 billion yuan, up 51.13% year-on-year [8][9][10]. AI Business Expansion - The AI business experienced explosive growth, with overall server revenue increasing over 50% year-on-year in Q2, cloud service provider server revenue surging 150%, and AI server revenue rising over 60% [9][10]. - The company is the largest supplier of AI server chip substrates for NVIDIA, securing exclusive orders for GH200 chip modules and holding a 55% market share in NVIDIA's H100/H200 chip substrate market [10][11]. Cloud Computing Growth - The cloud computing business is a core growth driver, benefiting from expanded capital expenditures by North America's top four cloud service providers, with AI servers accounting for 45% of cloud computing revenue in H1 2025, up from 38% in 2024 [10][11]. - The gross profit margin of the cloud computing business rose 0.8 percentage points quarter-on-quarter to 6.8% due to increased shipment growth [10][11]. Communication and Network Equipment - The communication and mobile network equipment business achieved structural upgrades, with 800G high-speed switches seeing shipments surge 280% year-on-year in H1, making it a core supplier for major clients like Meta and Google [11][12]. - The gross profit margin of the network equipment business increased by 1.2 percentage points year-on-year to 7.3% due to the high-end transformation of communication equipment [11][12]. Future Outlook - The company anticipates continued high demand for AI computing in H2 2025, with a significant increase in AI infrastructure capital expenditures among North American cloud service providers [12]. - The company has sufficient production capacity for next-generation AI servers, with a Mexico plant capable of producing 240,000 units annually and a 45-day delivery cycle for GB200 cabinets [12].