UCAP(SH:688228) ZHESHANG SECURITIES·2025-09-17 12:16Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [7]. Core Insights - The company aims to become a comprehensive AI service provider by integrating software and hardware through the acquisition of Jintai Storage, enhancing its capabilities in AI computing and applications [4][5]. - The company’s revenue for 2024 is projected to be 620 million yuan, with a year-on-year decrease of 11%, while the net profit is expected to be 20.59 million yuan, down 50% from the previous year, primarily due to increased equity payment expenses [2][5]. - The company’s three main business segments are AI large models and computing, AI industry applications, and AI content security, with expected revenue contributions of 20%, 64%, and 15% respectively in 2024 [2][3]. Summary by Sections Business Overview - The company focuses on a full-stack AI strategy encompassing AI computing, intelligent agents, and smart applications, providing integrated solutions across various sectors including media, government, energy, and education [15][17]. - The company has developed proprietary products such as the "KAIWEN" AI large model and "KAIWEN Magic Box" edge AI integrated machine, which combine computing power and industry applications [2][19]. Acquisition of Jintai Storage - The company plans to acquire 100% equity of Jintai Storage, a leading domestic storage module manufacturer, to enhance its AI integrated solutions [4][5]. - Jintai's market share in global SSD and DRAM modules ranks fourth, and the acquisition is expected to significantly boost the company's market position and capabilities [4]. Financial Projections and Valuation - The company’s estimated market value post-acquisition is projected to be 20 billion yuan, with a reasonable market value of 6.2 billion yuan for 2025 [5]. - Revenue forecasts for 2025-2027 are 720 million, 800 million, and 890 million yuan, reflecting year-on-year growth rates of 16%, 11%, and 12% respectively [5]. Market Trends - The AI large model and computing market is expected to experience explosive growth, with the general computing market in China projected to reach 140.1 EFLOPS by 2028, growing at a compound annual growth rate (CAGR) of 18.8% [42]. - The data element market in China is also expanding rapidly, with a projected market size of 196.8 billion yuan by 2025, driven by policy support and technological advancements [46]. Competitive Position - The company has established a strong foothold in the digital government sector, serving over 2,100 government clients and covering more than 80% of provincial governments [62][63]. - The company’s AI content security product "Jiumozhi" has been deployed for comprehensive risk control in large model applications, enhancing its competitive edge in the market [67].