Investment Rating - The report maintains an "Increase" rating for the industry [7] Core Viewpoints - The strategic merger between Haiguang Information and Zhongke Shuguang marks a significant moment for the domestic computing power ecosystem, leading to a revaluation of domestic computing power [2] - The merger will allow Haiguang Information to inherit all assets, liabilities, and rights from Zhongke Shuguang, enhancing the competitive capabilities of the combined entity in the computing power industry [2][3] - The integration of Haiguang's chip technology with Zhongke Shuguang's infrastructure capabilities is expected to create synergies that will strengthen the overall computing power ecosystem in China [3] Summary by Sections Merger Details - Haiguang Information plans to absorb Zhongke Shuguang through a share swap, issuing 8.08 billion shares at a swap ratio of 1:0.5525, with a swap price of 143.46 CNY per share for Haiguang and 79.26 CNY for Zhongke [2] - The swap prices represent a premium of 5.4% and 28.0% over the last closing prices of Haiguang and Zhongke, respectively [2] Financial Performance - In Q1 2025, Haiguang's contract liabilities surged to 32.37 billion CNY, a 258.47% increase from the previous year, indicating strong demand in the domestic computing power sector [4] - The inventory level reached 57.94 billion CNY, reflecting the company's confidence in future growth [4] Industry Outlook - The report suggests focusing on the computing power ecosystem, particularly in the server sector, highlighting companies such as Zhongke Shuguang, Haiguang Information, and others as key players [4]

Investment Rating - The report maintains an "Accumulate" rating for the industry [7] Core Viewpoints - The strategic merger between Haiguang Information and Zhongke Shuguang marks a significant moment for the domestic computing power ecosystem, leading to a revaluation of domestic computing power assets [2] - The merger will allow Haiguang Information to inherit all assets, liabilities, and rights from Zhongke Shuguang, enhancing the competitive edge against international leaders in the computing power industry [2][3] - The combined strengths of Haiguang Information in chip technology and Zhongke Shuguang in complete machine and data center infrastructure will create synergies that enhance technological breakthroughs and industry resilience [3] Summary by Sections Merger Details - Haiguang Information will conduct a share swap to absorb Zhongke Shuguang, issuing a total of 808 million shares at a swap price of 143.46 CNY per share for Haiguang and 79.26 CNY per share for Zhongke, reflecting premiums of 5.4% and 28.0% respectively compared to their last closing prices [2] Financial Performance - In Q1 2025, Haiguang's contract liabilities surged to 3.237 billion CNY, a 258.47% increase from the previous year, indicating strong demand in the domestic computing power sector [4] - The inventory level reached 5.794 billion CNY, up 6.80% from the previous quarter, showcasing the company's confidence in future growth [4] Industry Outlook - The report suggests focusing on the computing power ecosystem, particularly in the server sector, highlighting companies such as Zhongke Shuguang, Haiguang Information, and others as key players to watch [4]