Key Points - Fengshan Group clarified that its sales do not involve solid-state battery electrolyte materials [1] - Zhiwei Co., Ltd. plans to invest approximately 1.5 billion yuan in the construction of high-end cast steel pump and valve components manufacturing project [1] - Tianyong Intelligent won a bid for a 58.8 million yuan DHE high-efficiency platform production line engine assembly line project [1] - Hanwei Technology intends to sell 65% of its stake in Hanwei Zhiyuan [1] - Huaxin Environmental plans to repurchase shares worth between 40 million to 80 million yuan [1] - Xin Nuo Wei is planning to issue E-shares and list on the Hong Kong Stock Exchange [1] - Shareholders of Run Da Medical, Zhu Wenyi and Liu Hui, plan to reduce their holdings by no more than 2.99% [1] - Feng Assistant intends to raise no more than 984 million yuan through a private placement to actual controllers [1] - Jiaotong Sino's chairman Li Wei has been placed under detention [1] Investment Projects - Nong Shang Environment's subsidiary plans to invest in the construction of intelligent computing center infrastructure [1] - Sai En Si (Fujian Longli Chemical) plans to invest no more than 300 million yuan in the expansion of the selection agent project [1] - Bin Hua Co. intends to invest 1.421 billion yuan in the construction of an integrated source network load storage project [1] Contracts and Acquisitions - Zhong Wu Drone signed a major contract worth 615 million yuan [1] - Xin Nuo Wei plans to acquire a 29% stake in Ju Shi Bio [1] - Huaheng Biological submitted an application for H-share issuance and listing on the Hong Kong Stock Exchange [1] - Kete Power plans to issue shares overseas (H-shares) and apply for listing on the Hong Kong Stock Exchange [1]

Group 1 - Hainan Huatie announced the termination of the "Computing Power Service Agreement" with Company X, which was originally signed for a contract amount of 3.69 billion yuan over a service period of 5 years [1] - The termination was attributed to significant changes in the market environment and supply-demand situation since the agreement was signed, with no purchase orders received since then [1] - Hainan Huatie primarily engages in equipment leasing and has expanded into intelligent computing services, focusing on providing comprehensive solutions for computing power [1] Group 2 - The company plans to invest 1 billion yuan in building a computing power center, aiming to provide high-end GPU-level computing resources and value-added technical services [2] - The computing power center will involve procurement of chips and servers, and will collaborate with universities and industries such as AI, autonomous driving, and high-end manufacturing [2] - As of March 2025, Hainan Huatie has signed computing power service agreements totaling 6.67 billion yuan, with over 900 million yuan in asset delivery completed [2] Group 3 - In the first half of the year, Hainan Huatie achieved total revenue of 2.805 billion yuan, a year-on-year increase of 18.89%, and a net profit of 341 million yuan, up 1.85% [3] - The company is planning to list on the Singapore Stock Exchange to enhance its international strategy and accelerate the establishment of overseas computing power centers [3]

Investment Rating - The report maintains an "Add" rating for the company [2][6]. Core Insights - The company is set to acquire a 39.2% stake in Wu Tongshu Technology, a leading AIDC service provider, which is expected to significantly enhance its position in the intelligent computing center market valued at over 1 trillion yuan [4][44]. - Wu Tongshu Technology has committed to achieving a net profit of no less than 400 million yuan from 2025 to 2027, indicating strong growth potential [4][44]. - The report highlights four key advantages of Wu Tongshu Technology: superior server performance, excellent liquid cooling technology, strong profitability, and a solid presence in the education sector [43][44]. Summary by Sections 1. Company Overview - The company, established in 1999, specializes in landscape lighting design, construction, and operation services, with rapid revenue and profit growth from 2015 to 2021 [14]. - The company has expanded its business scope by acquiring Holovis and is now pursuing the acquisition of Wu Tongshu Technology to enhance its capabilities in computing services and immersive experiences [24]. 2. AIDC Business - The domestic intelligent computing center market is projected to reach 288.6 billion yuan by 2028, with a CAGR of 27% [27][40]. - Wu Tongshu Technology's server performance is reported to be at 80%-90% of international leading levels, with a significant cost advantage [43][56]. - The company has a strong order reserve of 3.55 billion yuan, with a high probability of fulfilling its performance commitments [4][43]. 3. Financial Projections - The report forecasts the company's net profit to grow significantly from 101.75 million yuan in 2025 to 153.49 million yuan in 2027, reflecting a growth rate of 392.04% and 23.45% respectively [6][7]. - The expected revenue for 2025 is projected at 1.29 billion yuan, with a growth rate of 87.97% [7]. 4. Market Trends - The report notes that the AI industry is experiencing rapid growth, with the Chinese AI market expected to reach 352.2 billion yuan by 2025, driven by advancements in large model technologies [28][30]. - The demand for intelligent computing is expected to rise sharply, with the market size for intelligent computing projected to reach 259 billion yuan by 2026 [35].

Core Viewpoint - The major asset restructuring of *ST Yushun (002289.SZ) has been successfully completed, marking the largest cash transaction merger among ST companies in A-shares this year, which is expected to transform the company significantly [1] Group 1: Company Restructuring - *ST Yushun held an extraordinary shareholders' meeting on September 29 to discuss the acquisition of data center assets, with all proposals approved [1] - Following the acquisition of the Zhong'en Cloud project, *ST Yushun is projected to turn a profit, with net profit increasing from -14.42 million to 159 million, and revenue surpassing 1 billion [1] - The acquisition is seen as a starting point, with potential future acquisitions by the major shareholder still under observation [1] Group 2: Strategic Developments - The major shareholder, Shanghai Fengwang Industrial Co., Ltd., has already gained control of significant intelligent computing assets, including a 52% stake in Hebei Aihua Data Technology Co., Ltd., which is involved in the UnionPay Cloud Intelligent Computing Center project [1] - The Hebei Aihua project is larger than the Zhong'en Cloud project, with plans to install approximately 12,384 cabinets, significantly exceeding the 8,000 cabinets of Zhong'en Cloud, valued at 3.35 billion [2] - The strategic intent of Shanghai Fengwang to upgrade from data centers to more advanced intelligent computing centers is becoming increasingly clear, with ambitions to position *ST Yushun as a leading player in computing power [2]

Core Viewpoint - The company holds an 18.18% stake in Zhejiang Shusi Technology and is exploring opportunities in the supercomputing and intelligent computing center business through this partnership with Huawei [1] Group 1 - The company currently owns 18.18% of Zhejiang Shusi Information Technology Co., Ltd [1] - The company is monitoring the development of its investee and will explore related opportunities based on actual conditions [1]

Group 1 - Alibaba Group is actively advancing its AI infrastructure construction with an investment of 380 billion yuan and plans for larger scale investments [1] - The competition among technology companies in AI infrastructure is intensifying, benefiting the development of related industries such as data center construction, chip manufacturing, and software development [1] - The proportion of intelligent computing power in China's total computing power is expected to increase from 3% in 2016 to 35% by 2025, indicating rapid development in intelligent computing center construction [1] Group 2 - The investment scale of China's intelligent computing center market is expected to reach 288.6 billion yuan by 2028, driven by various factors [2] - Qinhuai Data plans to invest 24 billion yuan to build three zero-carbon super-large intelligent computing parks in Zhongwei City, with a total capacity of 1.2 GW [2] - Unisplendour is expanding its Turing Town project and has established strategic cooperation with several provinces, with seven Turing Towns currently built or under construction [2] Group 3 - Unisplendour launched a high-density liquid cooling cabinet solution in the first half of 2025, supporting the deployment of 64 high-performance AI accelerator cards or thousand-core CPUs [3]

Group 1 - Alibaba Group is actively advancing its AI infrastructure construction with an investment of 380 billion yuan and plans for larger investments [1] - The competition among technology companies in AI infrastructure is intensifying, benefiting the development of related industries such as data center construction, chip manufacturing, and software development [1] - The proportion of intelligent computing power in China's total computing power is expected to increase from 3% in 2016 to 35% by 2025 [1] Group 2 - The investment scale of China's intelligent computing center market is expected to reach 288.6 billion yuan by 2028 [2] - Beijing Qinhuai Data Co., Ltd. plans to invest 24 billion yuan to build three zero-carbon super-large intelligent computing parks in Zhongwei City, with a total capacity of 1.2 GW [3] - Unisplendour Corporation is expanding its intelligent computing center construction and has established strategic cooperation with several provinces, with seven Turing Towns currently built or under construction [4] Group 3 - Unisplendour has launched a high-density liquid cooling cabinet solution that supports 64 high-performance AI accelerator cards or thousand-core CPUs, meeting the stringent energy consumption requirements of high-computing clusters [4]

Core Viewpoint - The company has experienced significant growth in its second curve revenue, particularly in computing power and terminal products, which have nearly doubled year-on-year and now account for over 35% of total revenue [3]. Group 1: Revenue Growth - The company's server and storage revenue has increased by over 200% year-on-year [3]. - AI server revenue constitutes 55% of the total server revenue [3]. Group 2: Market Position and Orders - The company has recently secured the top share in a collective procurement for AI general computing devices (inference type) [3]. - The company is actively expanding its order acquisition efforts [3]. Group 3: Technological Advancements - The company has developed self-research capabilities for switching chips, achieving a key chip forwarding capacity of 12.8T [3]. - The company aims to upgrade its key chip forwarding capacity from 12.8T to 51.2T [3]. Group 4: Industry Outlook - The evolution of AI technology and its applications is expected to drive the construction of intelligent computing centers and increase business volume on the consumer side [3]. - This growth is anticipated to boost network construction and become a primary engine for ICT industry investment growth over the next 3-5 years [3]. - Cloud vendors are continuously investing in computing power, and the company's intelligent computing and terminal layout is expected to empower future growth [3].

Group 1 - ZTE Corporation's stock increased by over 5%, reaching HKD 35.62 with a trading volume of HKD 1.318 billion [1] - Tianfeng Securities reported that in the first half of this year, ZTE's revenue from computing power and terminal products grew nearly 100% year-on-year, accounting for over 35% of total revenue [1] - The company's server and storage revenue increased by over 200% year-on-year, with AI server revenue making up 55% of this segment [1] Group 2 - ZTE has recently won a bid for AI general computing devices from China Mobile, securing the largest share of the total procurement [1] - The company has self-research capabilities for switching chips and has achieved a key chip forwarding capacity of 12.8T, with ongoing technological advancements aimed at upgrading this capacity to 51.2T [1] - The evolution of AI technology and its applications is expected to drive the construction of intelligent computing centers and increase business volume on the consumer side, which may become a major engine for ICT industry investment growth over the next 3-5 years [1] Group 3 - Cloud vendors are continuously investing in computing power, and ZTE's strategy of integrating intelligent computing with terminal products is anticipated to empower future growth [1]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative increase of over 15% compared to the CSI 300 index within the next six months [30]. Core Views - The company reported a revenue of 2.496 billion yuan for H1 2025, representing a year-on-year growth of 15.31%, while net profit decreased by 9.48% to 882 million yuan [4]. - The company is experiencing significant growth in its AIDC business, with a revenue increase of 36.95% year-on-year, contributing 35% to total revenue [5]. - The IDC business revenue grew by 6.15% year-on-year, with a gross margin of 46.92%, although it saw a decline compared to the previous year [5]. - The company has delivered a substantial amount of computing power, with 220MW delivered in H1 2025, and expects to deliver a total of 440MW by the end of the year [6]. - The company is actively seeking quality acquisition targets to strengthen its position in the industry and enhance its leadership in intelligent computing [10]. Financial Performance - For H1 2025, the company achieved a revenue of 2.496 billion yuan, with a net profit of 882 million yuan, reflecting a decline in profitability [4]. - The AIDC segment's gross margin decreased by 16.73% year-on-year, while the IDC segment's gross margin fell by 4.44 percentage points [5]. - The company anticipates a strong revenue growth trajectory, with projected revenues of 5.963 billion yuan in 2025, 7.996 billion yuan in 2026, and 10.335 billion yuan in 2027 [10]. Business Segments - The AIDC business is a key growth driver, with significant revenue contributions and high gross margins despite recent declines [5]. - The IDC business is recovering, with improvements in data center utilization and revenue growth expected as upgrades are completed [5][8]. - The company is focusing on expanding its computing power delivery capabilities, with ongoing construction and upgrades to data centers [9].