Investment Rating - The report maintains an "Accumulate" rating for the company [3] Core Views - The company achieved significant revenue growth in H1 2025, with total revenue reaching 10.437 billion yuan, a year-on-year increase of 282.64% [1][7] - The net profit attributable to the parent company for H1 2025 was 3.942 billion yuan, reflecting a year-on-year growth of 355.68% [1][7] - The strong performance is attributed to the mass shipment of 800G optical modules and improvements in yield rates [1][7] - The company is expanding its production capacity in Thailand, with total optical module capacity increasing by 43.4% to 15.2 million units by the end of H1 2025 [7] Financial Data and Valuation - Projected total revenue for 2025 is 25.61 billion yuan, with a year-on-year growth of 196% [2] - Expected net profit for 2025 is 9.38 billion yuan, with a year-on-year growth of 231% [2] - The company’s PE ratio is projected to decrease from 407.2 in 2023 to 29.9 in 2025, indicating a potential valuation re-rating [2][7] Performance Metrics - The company’s point-to-point optical module sales volume reached 6.95 million units in H1 2025, a year-on-year increase of 112.5% [7] - The gross margin for point-to-point optical modules improved to 47.78%, up 4.12 percentage points year-on-year [7] - The company’s return on equity (ROE) is projected to be 72.8% in 2025, indicating strong profitability [2] Market Position and Future Outlook - The company is well-positioned to benefit from the increasing demand for high-speed optical modules driven by AI data center construction [7] - The report anticipates further growth in revenue and net profit for 2026 and 2027, with projected revenues of 36.86 billion yuan and 45.90 billion yuan, respectively [2][7] - The company is expected to continue enhancing its product offerings, including advancements in 1.6T and LPO optical modules [7]

Group 1: Central State-Owned Enterprises Innovation-Driven ETF Performance - The Central State-Owned Enterprises Innovation-Driven ETF (515900) has seen a recent increase of 0.90%, marking its third consecutive rise, with the latest price at 1.57 yuan [3] - As of August 21, 2025, the ETF has achieved a net value increase of 16.62% over the past year, with a maximum single-month return of 15.05% since inception [5] - The ETF's trading volume has been significant, with a turnover rate of 0.65% and a transaction value of 22.96 million yuan on the latest trading day [3] Group 2: Index Composition and Performance Metrics - The Central State-Owned Enterprises Innovation-Driven Index (000861) includes 100 representative listed companies evaluated for innovation and profitability, with the top ten stocks accounting for 34.11% of the index [6] - The ETF has demonstrated strong recovery metrics, with a relative drawdown of 0.08% year-to-date and the fastest recovery time of 105 days among comparable funds [5] - The ETF's management fee is 0.15%, and the custody fee is 0.05%, which are the lowest among comparable funds [5] Group 3: Liquid Cooling Technology and Humanoid Robotics - The liquid cooling technology is expected to see a significant increase in penetration within AI data centers, rising from 14% in 2024 to 33% in 2025, driven by the release of NVIDIA's GB200 NVL72 servers [4] - The humanoid robotics industry is experiencing rapid advancements, highlighted by the success of the "Tiangong" robot at the World Humanoid Robot Games, showcasing substantial progress in perception and control technologies [4]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 39.71 per share [7][5]. Core Views - The company reported a 1H25 revenue of RMB 8.886 billion, a year-on-year increase of 21.76%, and a net profit attributable to shareholders of RMB 212 million, up 69.32% year-on-year, driven by accelerated data center construction in the internet sector [1]. - The demand for network equipment remains strong, particularly in the data center segment, with expectations for continued high growth in internet capital expenditures in the second half of the year [4][5]. - The company is focusing on optimizing internal operations while benefiting from external market conditions, which is expected to accelerate performance growth [1]. Summary by Sections Financial Performance - In 1H25, the company achieved a gross margin of 30.46%, down 2.30 percentage points year-on-year, primarily due to strong purchasing power from internet clients and intensified industry competition [3]. - The company’s sales expense ratio, management expense ratio, and R&D expense ratio were 9.38%, 4.61%, and 11.17%, respectively, showing significant optimization compared to the previous year [3]. Product Segmentation - The company’s revenue from enterprise network equipment products reached RMB 6.459 billion, a year-on-year increase of 41.7%, with data center switch products from its subsidiary, Ruijie Networks, seeing a remarkable growth of 110% [2]. - The network terminal segment reported a revenue of RMB 320 million, down 23.1% year-on-year, indicating a challenging market environment for cloud and payment terminals [2]. Market Outlook - The company is expected to benefit from the easing supply of H20 and the gradual release of domestic GPUs, which will likely sustain high growth in internet capital expenditures [4]. - The company is also expanding into the metaverse and AI sectors, with its subsidiary, StarNet Vision, focusing on immersive experience spaces [4]. Profit Forecast and Valuation - The net profit forecasts for 2025, 2026, and 2027 have been adjusted to RMB 806 million, RMB 1.092 billion, and RMB 1.358 billion, respectively, reflecting slight upward adjustments based on business conditions [5]. - The company is assigned a PE valuation of 29x for 2025, with a target price of RMB 39.71 per share, indicating a positive outlook based on expected performance growth [5].

Core Viewpoint - InnoLux (02577) has officially announced a partnership with NVIDIA to promote the large-scale implementation of 800VDC power architecture in AI data centers, which is expected to drive growth in the related supply chain [1][1]. Company Summary - InnoLux's stock price increased by over 6% in early trading, currently up 4.71% at HKD 79, with a trading volume of HKD 339 million [1]. - The company launched its third-generation (Gen3) 700V enhanced GaN power device series on August 18 [1]. - A board meeting is scheduled for August 28 to consider and approve the interim results [1]. Industry Summary - According to Yongxing Securities, the high power consumption of AI server clusters necessitates a focus on reducing power consumption, which is a common goal in the industry [1]. - The collaboration between InnoLux's GaN devices and NVIDIA is expected to continuously introduce new power devices into the supply chain, fostering the development of related industries such as GaN and SiC [1]. - Jefferies highlighted that InnoLux's inclusion in NVIDIA's 800V DC power supplier list is significant for both GaN technology and InnoLux [1].

Core Insights - The report by TrendForce indicates a significant shift towards liquid cooling technology in AI data centers, with penetration expected to rise from 14% in 2024 to 33% in 2025, driven by the release of NVIDIA's GB200NVL72 server [1] - AI servers are increasingly utilizing GPU and ASIC chips with high power consumption, necessitating the adoption of liquid-to-air (L2A) cooling technology, as traditional air cooling systems cannot handle the thermal design power (TDP) of 130kW-140kW [1] - The transition to liquid-to-liquid (L2L) cooling architecture is anticipated to accelerate from 2027 onwards, as new data centers are completed and AI chip power consumption continues to rise [1] Industry Developments - Major cloud service providers (CSPs) in North America are expanding AI infrastructure, with new data center constructions in North America, Europe, and Asia, incorporating liquid cooling compatible facilities [2] - Companies like Google and AWS have initiated modular buildings with liquid cooling capabilities in various European countries, while Microsoft plans to standardize liquid cooling systems by 2025 [2] - The demand for cooling modules, heat exchange systems, and related components is increasing due to the rising penetration of liquid cooling technology [2] Key Components - The fluid distribution unit (CDU) is crucial for heat transfer and coolant distribution in liquid cooling systems, with the market currently dominated by Sidecar CDU, led by Delta [3] - In-row CDU, supplied by Vertiv and BOYD, is gaining traction due to its superior cooling capabilities for high-density AI cabinet deployments [3] - Quick disconnect (QD) connectors are essential for the reliability and safety of liquid cooling systems, with major players like CPC, Parker Hannifin, Danfoss, and Staubli leading the NVIDIA GB200 project [3] Product Trends - NVIDIA's Blackwell platform, including products like GB200Rack and HGX B200, is ramping up production, with the new B300 and GB300 series entering sample validation [4] - The new Blackwell GPU is expected to account for over 80% of NVIDIA's high-end GPU shipments this year [4] - New data centers are increasingly designed with a "liquid cooling ready" concept to enhance thermal management efficiency and flexibility [4]

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [8]. Core Insights - The company's data center business is performing well, with a positive outlook for the HVDC and liquid cooling technologies. The product matrix includes UPS, precision air conditioning, micro-modules, power modules, and battery systems, serving key industries such as finance, communication, and healthcare [5]. - The storage business is gradually recovering, with a focus on expanding into new markets, particularly in Europe, the Asia-Pacific, and Africa. The European market is showing signs of recovery after a competitive phase [7]. - Revenue forecasts for 2025-2027 are projected at 48.21 billion, 65.20 billion, and 82.15 billion yuan, respectively, with corresponding EPS of 0.96, 1.39, and 1.87 yuan. The current stock price corresponds to PE ratios of 33.7, 23.2, and 17.3 times for the respective years [8]. Summary by Sections Data Center Business - The company has a strong presence in data center infrastructure, with domestic and overseas revenues evenly split. The data center revenue growth has improved in Q1 2025 and is expected to maintain high levels throughout the year [5]. Storage Business - The storage business is recovering, particularly in Europe, and the company is actively exploring new market channels in emerging regions such as the Middle East and Southeast Asia [7]. Financial Projections - The company anticipates a revenue increase from 4.82 billion yuan in 2025 to 8.22 billion yuan in 2027, with a significant recovery in net profit from 559 million yuan in 2025 to 1.09 billion yuan in 2027 [11].

Group 1 - The core viewpoint of the article highlights the increasing adoption of liquid cooling technology in AI data centers, driven by the upcoming release of NVIDIA's GB200 NVL72 server in 2025, which is expected to significantly enhance the penetration rate of liquid cooling from 14% in 2024 to 33% in 2025, with continued growth in subsequent years [1][3] Group 2 - TrendForce indicates that the power consumption of GPUs and ASIC chips in AI servers has significantly increased, with the NVIDIA GB200/GB300 NVL72 system having a thermal design power (TDP) of 130kW-140kW, surpassing the limits of traditional air cooling systems, leading to the initial adoption of Liquid-to-Air (L2A) cooling technology [3] - Due to the limitations of existing data center structures and water circulation facilities, L2A will serve as the mainstream transitional cooling solution in the short term, while Liquid-to-Liquid (L2L) architecture is expected to accelerate in popularity starting in 2027, providing higher efficiency and stable thermal management capabilities [3] - Major cloud service providers (CSPs) in North America are ramping up AI infrastructure, initiating a new wave of data center expansions in North America, Europe, and Asia, with companies like Google and AWS already implementing liquid cooling-capable modular buildings in various locations [3] Group 3 - The rising penetration of liquid cooling is driving demand for cooling modules, heat exchange systems, and peripheral components, with cold plates being a core component, supplied by companies such as Cooler Master, AVC, BOYD, and Auras, with three of them expanding liquid cooling capacity in Southeast Asia to meet high demand from US CSP clients [4] - Fluid distribution units (CDUs) are critical modules in liquid cooling systems responsible for heat transfer and coolant distribution, categorized into In-row and Sidecar types, with Sidecar CDU currently being the market leader, and Delta being the leading supplier [4] - Quick disconnects (QDs) are essential components in liquid cooling systems, ensuring the safety and stability of the cooling architecture, with the NVIDIA GB200 project being led by major international companies such as CPC, Parker Hannifin, Danfoss, and Staubli, leveraging existing certification systems and advanced application experience [5]

Core Insights - The article highlights the anticipated growth of liquid cooling technology in AI data centers, driven by the release of NVIDIA's GB200NVL72 server in 2025 [1] Group 1 - Liquid cooling technology is expected to transition from early trials to large-scale adoption as cloud operators upgrade their AI data center architectures [1] - The penetration rate of liquid cooling in AI data centers is projected to increase significantly from 14% in 2024 to 33% in 2025 [1] - This growth trend is expected to continue in the following years, indicating a robust market for liquid cooling solutions [1]

Investment Rating - The report maintains a rating of "Accumulate" for the company [5][11]. Core Views - The aluminum processing industry is facing intensified competition, leading to a slowdown in profit growth for the company. However, with the gradual easing of international trade frictions and the ramp-up of new products, the company's performance is expected to return to a rapid growth trajectory [2][11]. - The company achieved a net profit attributable to shareholders of 570 million yuan in H1 2025, representing a year-on-year increase of 2.15%. In Q2 2025, the net profit was 304 million yuan, a slight decrease of 0.22% year-on-year but an increase of 14.24% quarter-on-quarter, aligning with expectations [11]. - The company is advancing its capacity construction steadily, with a current finished product supply capacity of 500,000 tons and an ongoing project for 450,000 tons of high-end aluminum plates for new energy vehicles [11]. - New growth opportunities are anticipated in the AIDC, air conditioning, and energy storage sectors, driven by the increasing demand for heat dissipation performance and the application of liquid cooling technology [11]. Summary by Sections Financial Performance - In H1 2025, the company reported a net profit of 570 million yuan, with a year-on-year growth of 2.15%. The Q2 2025 net profit was 304 million yuan, down 0.22% year-on-year but up 14.24% quarter-on-quarter [11]. - The company adjusted its EPS forecasts for 2025-2027 to 1.40, 1.58, and 1.82 yuan respectively, down from previous estimates [11]. Market Position and Strategy - The company maintains a competitive edge in aluminum thermal transmission materials, despite the pressure on processing fees due to industry competition [11]. - The introduction of new products and continuous upgrades in product structure are expected to enhance profitability and market share [11]. Future Outlook - The report anticipates that the company's performance will benefit from the easing of international trade tensions and the launch of new products, positioning it for a return to rapid growth [2][11]. - The expansion into new application areas, particularly in AIDC and energy storage, is expected to open new growth avenues for the company [11].

Core Viewpoint - The company, Unisoc (紫光国微), has indicated that its switch chips are currently not involved in AI data center applications, although it is monitoring this market direction [1]. Company Summary - Unisoc's switch chips do not currently cater to AI data center applications [1]. - The company is paying attention to the developments in the AI data center market [1].