Core Insights - China Mobile has established a dual "Ten Thousand Card" intelligent computing center and upgraded 1,500 edge computing nodes, achieving a total computing power scale exceeding 61 EFLOP (exaflops) [1] - The company has collaborated with dozens of third-party computing power partners to realize the integration of four computing types: communication, intelligence, supercomputing, and large-scale computing [1] - The cloud intelligence computing platform has aggregated hundreds of models and thousands of intelligent agents, covering various modalities such as text, images, audio, and video, serving over 100 industries, 200 ecosystem partners, and more than 100,000 customers [1] - China Mobile, in partnership with industry players, launched the country's first "Chip Integration" heterogeneous super-converged comprehensive adaptation platform, adopting a new model of "chip + platform + certification + service" to effectively connect the upstream and downstream of intelligent computing in China [1]

Group 1 - The 21st CCF National High-Performance Computing Academic Conference opened in Ordos, Inner Mongolia, focusing on the theme "Green Computing Power and Super Intelligence Integration" [1] - The conference gathered numerous distinguished guests, including 11 academicians, Gordon Bell Award winners, authoritative experts, senior scholars, and industry elites [1] Group 2 - The rapid development of intelligent computing has led to the establishment of the High-Throughput Ethernet Alliance by Alibaba Cloud and the Chinese Academy of Sciences, aimed at standardizing high-throughput protocols for intelligent computing scenarios [3] - The alliance announced several significant achievements, including the launch of domestic chips such as 400G network card chips and 25.6G switch chips to build intelligent computing center networks [3] Group 3 - The first industry standard for "Super Intelligence Integration Cluster Capability Requirements" was officially released at the conference, addressing common industry issues such as poor cross-vendor compatibility and low cluster collaboration efficiency [5] - The conference featured 43 high-quality thematic forums and over 500 speakers, showcasing cutting-edge breakthroughs in high-performance computing across multiple fields [5] - Notable technologies such as liquid cooling solutions were highlighted, with multiple companies presenting related solutions [5]

Group 1 - The Hang Seng Index rose by 0.62%, gaining 156 points to close at 25,426 points, while the Hang Seng Tech Index increased by 1.96%. The early trading volume in Hong Kong stocks reached HKD 172 billion [1] - Chinese brokerage stocks continued their upward trend, with the Shanghai Composite Index hitting a nearly ten-year high, indicating a growing trend of active investment behavior among residents. Guotai Junan (601456) rose by 5.93%, China International Capital Corporation (601995) increased by 5.31%, and CITIC Securities (06030) gained 4% [1] - The film and television sector showed strength in early trading, driven by a surge in summer box office revenues and positive reviews for major films, leading to a recovery in audience demand. Lemon Films (09857) surged by 37%, while Maoyan Entertainment (01896) rose by 6.05% [1] - The performance of China Literature Group (00772) exceeded expectations, with the stock rising over 20% as the market focused on the company's IP commercialization progress [1] Group 2 - ZTE Corporation (00763) saw a rise of over 9%, with its A-shares hitting the daily limit, as the company has been actively expanding its smart computing and AI terminal businesses [2] - Continental Aerospace Technologies (00232) surged by over 26%, with expected net profit growth of nearly seven times for the first half of the year, as it is a manufacturer of general aviation piston engines [2] - Soundon Technology (02495) increased by nearly 40%, with expected net profit exceeding 50 million yuan, marking a turnaround from losses year-on-year [3] - Dongwu Cement (00695) experienced a mid-day surge of over 25%, with a cumulative increase of over 100% in the month, and an expected reduction in losses by approximately 67.6% year-on-year [4] - Tsunami Machine Tool China (01651) rose by over 14%, as the company actively explores new markets in AI liquid cooling connectors and electric brake systems for vehicles [4] - Jiufang Intelligent Investment Holdings (09636) increased by over 14%, reaching a new high as its subsidiary Jiufang Zhiyuan entered the "Mosu Space" [5] Group 3 - Standard Chartered Group (02888) fell by 2.58% amid allegations from U.S. lawmakers regarding public sentiment disturbances, following significant fluctuations in its London stock price [6]

Core Viewpoint - ZTE Corporation's stock has surged over 9%, reaching a limit up in A-shares, driven by the increasing demand for AI data centers and related technologies [1] Group 1: Stock Performance - ZTE's stock price increased by 9.16%, trading at 29.32 HKD, with a transaction volume of 1.508 billion HKD [1] Group 2: Industry Trends - The global AI development is accelerating, leading to a significant rise in demand for AI data center (AIDC) infrastructure [1] - New generation computing chips have higher power consumption, increasing the requirements for data center power systems and liquid cooling technologies [1] Group 3: Company Developments - ZTE is developing a comprehensive data center solution tailored for intelligent computing scenarios, including self-developed liquid cooling products and modular air handling units [1] - The company has been expanding its second curve business (intelligent computing, AI terminals, etc.), with expectations that this segment will account for over 35% of revenue by Q1 2025 [1] - ZTE's government and enterprise business revenue has doubled year-on-year, contributing over 20% to total revenue, helping the company return to a growth trajectory [1] - The company anticipates significant revenue growth in server and storage segments, with intelligent computing server orders expected to exceed 60% [1]

Core Viewpoint - ZTE Corporation (00763) shares rose over 9%, with A-shares hitting the daily limit, driven by increasing demand for AI data centers and related technologies [1] Group 1: Company Performance - ZTE's stock increased by 9.16%, reaching HKD 29.32, with a trading volume of HKD 1.508 billion [1] - The company has been expanding its second curve business, including intelligent computing and AI terminals, with expectations that revenue from this segment will exceed 35% by Q1 2025 [1] Group 2: Industry Trends - The global AI development is accelerating, leading to a surge in demand for AI data center (AIDC) solutions [1] - New generation computing chips have significantly increased power consumption, raising the requirements for data center power systems and liquid cooling technologies [1] Group 3: Product Innovations - ZTE is developing a comprehensive data center solution for intelligent computing scenarios, introducing self-developed products such as immersion cooling, cold plate cooling, external cooling units, and modular air handling units [1] - The company is experiencing strong growth in server and storage revenue, with over 60% of orders coming from intelligent computing servers [1]

Core Insights - Qingdao is accelerating the construction of intelligent computing infrastructure to empower the transformation of the real economy and the upgrade of digital cities, forming a fertile ground for intelligent computing development driven by policies, scenarios, and ecosystem aggregation [1] - China Mobile Shandong is leveraging its technological capabilities and resource advantages to provide a one-stop solution for advanced manufacturing enterprises in Qingdao, supporting their needs in model development, deployment, and business integration [1][3] Group 1: AI Service Model - Shandong Mobile has developed a self-research computing management platform that dynamically allocates IT resources, providing efficient, flexible, and secure computing services to advanced manufacturing [3] - The introduction of technologies such as vGPU and computing super-splitting allows for elastic expansion and time-sharing of computing resources, reducing computing rental costs by over 40% [3] - The "Qilu Smart Gathering Platform" offers a one-stop MaaS service for small and medium-sized manufacturing enterprises, significantly lowering the entry barrier to AI [3] Group 2: Infrastructure and Resource Integration - Shandong Mobile is responding to the "Shandong Province Action Plan for High-Quality Development of Computing Infrastructure" by creating a new model for intelligent computing center construction and operation through government-enterprise collaboration and ecosystem co-construction [4] - The company provides high-power liquid-cooled cabinets and OTN dedicated networks to meet the high availability needs of large-scale AI computing platforms [5] - The overall scale of domestic computing resources provided by Shandong Mobile reaches 192P, supporting interconnectivity and resource complementarity with heterogeneous computing [5] Group 3: Regional Development and Future Outlook - The integration of "industry + communication + intelligent computing" is driving the demand for high-quality computing resources in key sectors such as intelligent manufacturing and industrial internet within Shandong [5] - The established computing platform has successfully served leading manufacturing enterprises like Haier and research institutions such as Harbin Institute of Technology, aiding in local industrial structure upgrades [5] - Looking ahead, Shandong Mobile aims to leverage its advantages in network quality, customer scale, and technological innovation to create an AIDC intelligent computing product and service ecosystem, further reducing AI usage costs for advanced manufacturing enterprises [5]

Core Viewpoint - The report highlights the financial performance and operational status of Hengwei Technology (Shanghai) Co., Ltd. for the first half of 2025, indicating a significant decline in revenue and profit compared to the same period last year, while emphasizing the company's strategic focus on network visualization and intelligent systems. Financial Performance - The total revenue for the first half of 2025 was approximately CNY 488.40 million, representing a decrease of 23.19% compared to CNY 635.89 million in the same period last year [3] - The total profit for the period was CNY 17.06 million, down 77.11% from CNY 74.55 million year-on-year [3] - The net profit attributable to shareholders was CNY 17.82 million, a decline of 75.16% from CNY 71.74 million in the previous year [3] - The basic earnings per share decreased by 75.41% to CNY 0.0556 from CNY 0.2261 [4] Industry Overview - The network visualization industry has evolved over the past decade, transitioning from basic operational analysis to intelligent management of data services, leveraging new technologies such as big data and IoT [6] - The industry is currently in a rapid growth phase, driven by the integration of AI and the increasing demand for intelligent operations in data centers and smart computing [6][7] - The company is recognized as one of the earliest entrants in the network visualization field, maintaining a leading position in technology and market share [6] Business Operations - The company's main business includes the development and provision of intelligent system solutions, focusing on network visualization and intelligent system platforms [7] - The network visualization business involves real-time data collection and analysis to enhance network management and security, while the intelligent system platform provides hardware and software solutions for various industries [8] - The company has expanded its product applications to intelligent computing centers, integrating network visualization with computing resource management [8] Strategic Focus - The company aims to leverage its technological expertise to enhance its offerings in the intelligent computing sector, particularly in the context of national strategies promoting domestic information technology and smart computing [11] - The focus on domestic information technology has led to partnerships with local chip manufacturers to develop competitive products and solutions [11] - The company is actively involved in the development of AI-integrated solutions, addressing the growing demand for intelligent systems across various sectors [12]

Core Viewpoint - The collaboration between China Mobile International and Hong Kong Cyberport aims to enhance Hong Kong's position as an international innovation and technology center through the deployment of the SJC2 submarine cable and AI+ smart financial solutions [1][4]. Group 1: SJC2 Submarine Cable - The SJC2 submarine cable, which is 10,500 kilometers long, is set to be operational by July 16, 2025, with a design capacity of 126 Tbps [3]. - The cable will serve as a core node in Hong Kong, extending its reach to other major countries and regions in the Asia-Pacific, significantly improving Hong Kong's status as a global digital hub [3]. - China Mobile has deployed the first commercial hollow-core fiber connecting Hong Kong and Shenzhen, achieving an industry-leading end-to-end latency of less than 1 millisecond [3]. Group 2: AI+ Smart Financial Solutions - The AI+ smart financial solutions leverage the low-latency connection provided by the SJC2 cable, integrating large models, intelligent algorithms, and edge computing to enhance financial institutions' capabilities in areas such as intelligent risk control, real-time trading, and smart customer service [3]. - This initiative aims to promote high-quality, low-cost development in digital finance [3]. Group 3: Collaboration with Hong Kong Cyberport - A memorandum of cooperation has been signed between China Mobile International and Hong Kong Cyberport to jointly build an AI ecosystem, facilitating the entry of mainland enterprises into Hong Kong and supporting Hong Kong tech companies in expanding globally [3][4]. - The collaboration is expected to create a highly efficient computing power system that supports more enterprises and aligns Chinese standards with global standards [6]. Group 4: Government Support and Future Goals - The Hong Kong government emphasizes the importance of the SJC2 cable and AI+ solutions in creating a super channel connecting global capital, data, and computing power [6]. - China Mobile aims to empower Hong Kong and the Greater Bay Area to become an international intelligent computing center, a financial technology hub, and an AI innovation center, injecting strong momentum into the development of new productive forces [6].

Core Insights - The rapid development of China's computing power industry is highlighted by significant advancements in infrastructure and technology, with a focus on high-quality development and strategic initiatives like the "East Data West Computing" project [1][4][9] - The demand for intelligent computing (智算) is surging, with its scale reaching 748 EFlops, accounting for 35% of the total computing power in China, and projected to grow to 1037.3 EFlops by 2025 [2][3] - The integration of computing resources across the nation is being prioritized to enhance accessibility and efficiency, with initiatives like the establishment of a national computing network and the "Computing Power Internet" [4][5][7] Industry Developments - The computing power infrastructure in China is expanding, with over 1,043 million standard computing racks in use, marking an 18.5% increase from 2024 [2] - Major telecom companies are enhancing their computing capabilities, with China Telecom's central computing center in Wuhan expanding by 2 EFlops to support AI applications [3] - The "East Data West Computing" initiative has seen the total computing power of eight major hubs reach 215.5 EFlops, with intelligent computing accounting for 80.8% of this total [3] Technological Advancements - The introduction of advanced technologies, such as liquid cooling, is significantly improving energy efficiency in data centers, with reductions in energy consumption by 50%-60% [8] - The deployment of high-capacity optical transmission networks is facilitating efficient computing resource allocation, with companies like China Mobile and China Unicom achieving significant advancements in network capabilities [6][7] Policy and Strategic Initiatives - The Chinese government is actively promoting policies to drive the integration of computing power and energy efficiency, aiming for a PUE value below 1.35 in existing data centers by 2027 [8] - The establishment of a national computing network and the "Computing Power Internet" is expected to enhance the efficiency of resource allocation and support over 7,000 computing entities in meeting demand [4][5]

Core Viewpoint - The company, as a leader in traditional servers and industrial IoT, possesses a first-mover advantage in AI-enabled industries, with rapid growth in intelligent computing business expected to exceed forecasts [1] Investment Highlights - The company is initiating coverage with a buy rating, predicting EPS of 1.05, 1.27, and 1.46 yuan for 2025-2027, and setting a target price of 88.51 yuan based on PS and PE valuation methods [2] - Traditional sectors are driven by technological and product innovation, while the emerging intelligent computing business is experiencing rapid growth, suggesting future performance may exceed expectations [2] - The company holds a leading position in the overall IoT solutions sector, with its three main traditional business segments covering industrial IoT, ICT infrastructure, and industry terminals, benefiting from a unique supply chain and customer resource advantage [2] - The company is expected to leverage significant policy and industry catalysts in large models and intelligent IoT, leading to substantial upgrades in traditional business segments and high growth in emerging intelligent computing [2] Core Logic - The establishment of the subsidiary Tengyun Intelligent Computing in early 2024 has opened new growth avenues, with the intelligent computing industry characterized by high growth potential and high gross margins, effectively driving a recovery in company performance [3] - Tengyun Intelligent Computing is positioned as a full lifecycle solution provider for AIGC large model computing infrastructure, having developed the AI supercomputing server SYS-8043, suitable for deep learning training and inference applications [3] - The company is expected to become a key supplier for AI computing center construction due to its advantages in GPU server delivery and computing power scheduling platform development, following the implementation of relevant policies in the intelligent computing center industry [3] - AI technology is driving product upgrades in traditional sectors, opening new market opportunities in industrial control machines and industrial robots [3] - The acceleration of technological innovation and domestic substitution in industrial robots enhances the company's competitive edge with its "AI + Robotics" integrated solutions, covering mobile robots, industrial arms, and humanoid robots [3] Catalysts - High growth in intelligent computing revenue and the continuous implementation of AI computing-related policies are expected to act as catalysts for the company's performance [4]