Investment Rating - The report maintains an "Outperform" rating for the industry [1] Core Insights - The CSP cloud providers are entering the 2.0 era of AI arms race, with rapid development in intelligent computing center interconnection technology. Since 2023, the "large model revolution" ignited by ChatGPT 3.5 has led to significant investments in AI model research and intelligent computing center construction by major tech companies [2][18] - By 2025, the combined capital expenditure (Capex) of major overseas CSPs like Amazon, Google, Microsoft, and Meta is expected to reach $361 billion, a year-on-year increase of over 58%. Domestic companies like ByteDance, Tencent, and Alibaba are projected to exceed 360 billion yuan in Capex [2][19] - NVIDIA, as a leading AI chip manufacturer, is experiencing a supply-demand imbalance for its AI chips, while CSPs are increasing investments in intelligent computing centers, making self-developed ASIC chips a core focus of the new development phase in the AI arms race [2][3] Summary by Sections 01 CSP Arms Race Continues, AI Computing Infrastructure Shows High Prosperity - The competition among major tech companies in AI is intensifying, leading to a surge in token consumption and training demands for large models [9][10] 02 Chip Manufacturers Accelerate Iteration, Driving Industry Development - NVIDIA is accelerating the iteration of its AI chip performance, with upgrades occurring every two years instead of four, and the scale of AI chip clusters is increasing significantly [3][59] 03 CSP Cloud Providers Develop ASIC Chips and Data Center Networks - Major CSPs like Google, AWS, and Meta are actively developing their own ASIC chips and data center architectures to support their AI development paths [4][29] 04 New Technologies: CPO/OCS/Copper Backplane/OIO/PCIe Switch/DCI - The market for optical communication and copper connections is rapidly growing, with significant increases in the expected shipments of 800G and 1.6T optical modules [5] 05 Investment Recommendations - The report recommends focusing on optical module manufacturers such as Zhongji Xuchuang, Xinyi Technology, and Huagong Technology, as well as communication device manufacturers like ZTE and Unisoc [5]

Core Viewpoint - The company, Cloud Factory (02512), has issued a total of 45.985 million new shares at a subscription price of HKD 4.98 per share, raising approximately HKD 228 million in net proceeds after expenses [1] Fund Utilization - Approximately 13.2% of the net proceeds (or HKD 30 million) will be used to enhance the core business, specifically for IDC solutions and edge computing services, including procurement of high-performance edge computing hosts and hardware, development of distributed heterogeneous computing management platforms, and algorithm optimization research [1] - About 36.8% of the net proceeds (or HKD 84 million) will be allocated for business expansion, focusing on launching new services covering the entire lifecycle of intelligent computing, which includes hardware procurement, development of high-speed lossless networks, and establishment of large-scale distributed storage and computing management platforms [1] - Approximately 40.4% of the net proceeds (or HKD 92 million) will be used to establish the company's own intelligent computing center, which will provide intelligent computing services, including land and property acquisition, equipment procurement and installation, and internal renovations [1] - About 9.6% of the net proceeds (or HKD 22 million) will be allocated for working capital and general corporate purposes, such as employee expenses and office rent [1] Cash Flow Projections - By June 30, 2025, it is expected that approximately 64.0% of the company's cash and cash equivalents will be used to repay bank loans between July and October 2025, while about 36.0% will be used to settle outstanding supplier procurement costs and other expenses incurred in daily operations [1]

Core Viewpoint - Midea Group is collaborating with leading domestic internet companies on the development of intelligent computing centers, focusing on liquid cooling systems and key components [1] Group 1 - Midea Group is engaged in deep cooperation with top domestic internet enterprises [1] - The collaboration involves the joint development of liquid cooling systems for intelligent computing centers [1] - Midea Group is supplying products such as CDU (Cooling Distribution Unit) as part of this initiative [1]

Core Insights - Midea Group is collaborating with leading domestic internet companies on the development of liquid cooling systems and key components for intelligent computing centers [1] Group 1 - The company is engaged in deep cooperation with top domestic internet enterprises [1] - The focus of the collaboration is on the research and development of liquid cooling systems for intelligent computing centers [1] - Midea Group is supplying products such as CDU (Cooling Distribution Unit) as part of this initiative [1]

Core Viewpoint - Hainan Huatie, primarily engaged in equipment leasing, has gained significant attention in the Web 3.0 space due to its foray into digital collectibles, leading to a substantial increase in its stock price [1][2]. Group 1: Digital Collectibles and Stock Price Surge - The company launched a digital collectible on July 15, which saw its price rise from 2,000 yuan to over 5,000 yuan shortly after its release, contributing to a stock price increase of over 40% [1][5]. - Hainan Huatie's stock price reached a high of 12.77 yuan on July 24, up from 9.06 yuan on June 23, marking a significant rise in market interest [5]. - The digital collectible is linked to cash dividend benefits, with holders eligible for dividends equivalent to 5,000 shares of Hainan Huatie stock, potentially yielding around 3,800 yuan over three years [8]. Group 2: Strategic Investments and Market Positioning - The company completed a strategic investment in Nanchang Exim Technology Co., acquiring a 5% stake, which positions it for future NFT initiatives [3]. - Hainan Huatie has also announced the issuance of 10 million yuan in non-financial RWA products, further stimulating market sentiment [5]. - The company has been actively promoting various concepts, including a partnership with the Shanghai Data Exchange to establish a data center, enhancing its market presence [15]. Group 3: Financial Performance and Challenges - Despite revenue growth from 2.607 billion yuan in 2021 to 5.171 billion yuan in 2024, net profit has shown significant volatility, indicating a "revenue without profit" scenario [6]. - The company reported a decline in overall revenue in 2024 due to weak macro demand and expanded operational scale [7]. - Hainan Huatie's debt ratio has been increasing, reaching 72.95% by the end of 2024, highlighting ongoing financial pressures [17].

Market Overview - On August 6, a total of 77 stocks in the A-share market hit the daily limit, with 63 stocks remaining after excluding 14 ST stocks, resulting in an overall limit-up rate of 75.49% [1] - The highest limit-up order volume was recorded by Tongling Nonferrous Metals, with 833,800 hands, followed by China Shipbuilding Industry, Zhong An Keji, and Beiwai Technology, with limit-up orders of 646,600 hands, 288,300 hands, and 230,000 hands respectively [1] Limit-Up Stocks Summary - The top three stocks by limit-up order funds were Beijiajie (5.06 billion), Changcheng Jincheng (3.46 billion), and Tongling Nonferrous Metals (3.36 billion) [1] - Beijiajie closed at 44.97 yuan with a turnover rate of 3.99%, driven by probiotics, the three-child policy concept, oral care, and exports [2] - Changcheng Jincheng closed at 46.98 yuan with a turnover rate of 5.88%, influenced by military equipment restructuring, ammunition and weaponry, and a narrowed mid-term loss [2] - Tongling Nonferrous Metals closed at 4.03 yuan with a turnover rate of 7.75%, supported by share buybacks, copper foil expansion, and state-owned enterprise reform [2] - China Heavy Industry closed at 5.15 yuan with a turnover rate of 4.24%, boosted by absorption and merger, shipbuilding, and state-owned enterprise reform [2]

Core Viewpoint - The successful implementation of a national-level intelligent computing hub project in Tibet by Vertiv demonstrates the company's exceptional product strength, project management capabilities, and high-quality rapid delivery ability, overcoming extreme environmental challenges and tight deadlines [1][8][14]. Group 1: Project Overview - The project was initiated in April and required completion within a stringent 40-day timeline, encompassing design, manufacturing, transportation, and deployment [1][3]. - Vertiv achieved a remarkable delivery standard of "0 exceptions, 0 rework, 0 delays" during the project [7][14]. Group 2: Challenges Faced - The project faced five significant challenges due to the high-altitude environment: thin air affecting cooling efficiency, frequent voltage fluctuations, intense UV radiation, drastic temperature drops at night, and physiological limits for construction personnel [3][4]. - These challenges created multiple technical barriers, testing both product performance and the responsiveness of equipment manufacturers [3]. Group 3: Solutions Implemented - Vertiv completed a comprehensive solution design in just 5 days, leveraging its customization capabilities [4]. - The cooling system utilized Vertiv™ Liebert® PEX4 Plus precision air conditioning, while the power supply relied on Vertiv™ Liebert® APM2 series UPS, achieving an efficiency of 97.5% [5]. - The overall power distribution system was based on the new generation Vertiv™ APT2.0 prefabricated power module, significantly shortening the construction period [5]. Group 4: Delivery Mechanism - Vertiv broke down the 40-day timeline into 960 hours, ensuring precise control over each hour [6]. - The company implemented a detailed production management system, prefabricated solutions, resilient logistics, and digital delivery control to ensure timely project completion [6]. Group 5: Project Outcome - The project was completed ahead of schedule, with the system powered on by the 35th day, showcasing Vertiv's engineering capabilities and high-quality delivery [7]. - The successful execution of the project highlighted Vertiv's comprehensive strengths in product performance, project management, and rapid delivery capabilities [8][14]. Group 6: Company Background - Vertiv, formerly Emerson Network Power, is a global leader in digital infrastructure solutions with over 50 years of experience, serving various sectors including telecommunications, data centers, and renewable energy [14][15]. - The company has a strong presence in China with three R&D centers and two manufacturing bases, providing reliable products and professional services across the country [15].

Group 1 - The company has engaged in providing engineering testing and energy efficiency assessment services for smart computing centers and data centers in certain cities, although the contract amounts are relatively small [2] - Investors have inquired about the company's participation in bidding for smart computing centers and data centers, highlighting the potential for large orders from other companies [2] - The company aims to leverage its advantages in major cities like Shenzhen to capture relevant project orders [2]

Core Viewpoint - The company, China Bester Group Telecom Co., Ltd., is planning to issue A-shares to specific investors, aiming to raise funds for its ongoing projects in 5G infrastructure and intelligent computing services, while also addressing its financial obligations [1][9]. Company Overview - The company is based in Wuhan, Hubei Province, and was established on December 29, 1999, with a registered capital of 433,978,322 yuan [1]. - It specializes in communication network technology services and is expanding into intelligent computing, aiming to become a leading service provider in this field [2][3]. Main Business Activities - The company provides services related to 5G infrastructure, including network planning, design, implementation, and maintenance [3]. - It operates in various regions, including domestic provinces and international markets along the Belt and Road Initiative, serving major telecom operators [3]. - The company is also involved in intelligent computing solutions, offering design, construction, and operational services for computing clusters [3]. Financial Data - As of March 31, 2025, the total assets amounted to 796,889.50 million yuan, with total liabilities of 582,744.48 million yuan, resulting in total equity of 214,145.02 million yuan [4][5]. - The company reported a revenue of 54,948.16 million yuan for the first quarter of 2025, with a net profit of 1,696.63 million yuan [5][10]. - The asset-liability ratio was 73.13% as of March 31, 2025, indicating a high level of leverage [5]. Fundraising and Investment Plans - The company plans to raise up to 192,023.48 million yuan through this issuance, which will be allocated to projects including intelligent computing centers and 5G network construction [13]. - The total investment for these projects is estimated at 213,654.24 million yuan, with the company prepared to adjust funding allocations based on actual fundraising outcomes [13]. Issuance Details - The A-shares will be issued to no more than 35 specific investors, including qualified institutional investors and other eligible entities [11][12]. - The pricing for the shares will be based on the average trading price over the 20 trading days prior to the pricing date, with adjustments for any corporate actions [12]. Risk Factors - The company faces potential risks related to the pace of 5G infrastructure development and competition in the intelligent computing sector, which could impact its operational performance [7][8]. - The company’s increasing capital expenditure and rising asset-liability ratio may pose challenges if financing conditions worsen or if there are significant changes in the industry environment [8].

Investment Rating - The report maintains an "Accumulate" rating for the industry, specifically in the power equipment sector [5]. Core Insights - The intelligent computing center industry is experiencing rapid expansion driven by a combination of policy support, local government initiatives, and surging market demand. The investment scale in China's intelligent computing center market reached 87.9 billion yuan in 2023, representing a year-on-year growth of over 90%. It is projected to reach 288.6 billion yuan by 2028 [1][20]. - Local governments and basic telecom operators are the primary participants in the construction of intelligent computing centers, accounting for over 50% of the projects in operation, under construction, or planned as of August 2024. Internet and cloud service providers contribute approximately 17.7% of the projects [20][21]. Summary by Sections 1. Demand Driven Growth in AIDC - The investment scale of intelligent computing centers is significantly increasing due to the resonance of policy support and the demand for large models. The rapid growth in data volume driven by large model applications is pushing the intelligent computing center into an expansion phase [16][17]. - Major telecom operators and internet companies are ramping up their investments in computing power. For instance, China Mobile plans to invest 37.3 billion yuan in computing power, which will constitute 25% of its capital expenditure in 2025 [2][27]. 2. Evolution of Data Center Power Supply Architecture - The current power supply systems in data centers primarily utilize UPS, but there is a gradual shift towards HVDC and Panama power systems. HVDC systems offer significant advantages in reliability, efficiency, and economic viability compared to traditional UPS systems [3][26]. - The Panama power system demonstrates clear advantages in investment costs and operational efficiency, achieving a conversion efficiency of 97% [3][26]. 3. Future Trends in Power Supply Architecture - The transition towards medium and high voltage power supply systems is becoming a trend, with a focus on high-density and energy-efficient solutions in the AIDC era [3][38]. - The report suggests that companies like Kehua Data and Kstar, as well as leaders in HVDC and Panama power systems like Zhongheng Electric, are well-positioned to benefit from the increasing capital expenditures by internet companies [4][38].