Core Viewpoint - The article emphasizes the significant market potential and growth opportunities for Huawei's supply chain, particularly focusing on the high-speed backplane module, which has the highest value compared to other components like optical modules and liquid cooling systems [2][4]. Summary by Sections High-Speed Backplane Module - The demand for the high-speed backplane module is projected to reach 40,000 units for the 910B chip in 2025, with a market space of 45 billion yuan and a net profit margin of 20% [3]. - The total market space for the high-speed backplane module is expected to grow to 136.5 billion yuan by 2027, with a corresponding market capitalization of 819 billion yuan [3]. Company Background - Huafeng Technology, a leading domestic high-speed connector company, has a history dating back to 1958 and specializes in high-speed interconnect technology [9]. - The company has a diversified product portfolio and serves major clients including Huawei, ZTE, and BYD, solidifying its market position [10]. Business Segments - In the communications sector, Huafeng's core products include high-speed backplane connectors and modules, which are crucial for AI servers and data centers [12]. - The defense sector features products like FMC series high-speed data connectors, achieving international advanced levels and supporting domestic defense enterprises [13]. - The industrial sector, particularly in new energy vehicles, has seen significant growth, with a 40% increase in revenue from high-pressure connectors and harnesses [14]. Financial Performance - The company reported a revenue of 1.105 billion yuan in the first half of the year, a 128.26% increase year-on-year, with a net profit of 151 million yuan [16]. - The growth is attributed to strong performance in both communications and industrial segments, with the communications business seeing a 40% increase in sales for high-speed backplane connectors and power products [16][18]. Market Outlook - The company anticipates continued growth in the second half of the year, particularly from internet clients, with expected revenue increases of several million to 100 million yuan [17]. - The high-speed backplane module's profitability is expected to remain strong, despite potential pricing pressures, with a net profit margin projected around 17% [17][18]. Strategic Partnerships - Huafeng has established a strategic relationship with Huawei, which holds a 2.95% stake in the company through Hubble Investment [4][10]. - The company is also set to benefit from new orders from Alibaba, which could significantly contribute to its revenue and profit growth [6][19].

Group 1 - Zhongsoft International (00354) saw a morning increase of over 6%, currently up 5.5% at HKD 6.12, with a trading volume of HKD 496 million [1] - On August 5, at the Ascend Computing Industry Development Summit, Huawei's rotating chairman Xu Zhijun announced the full open-source of Huawei's Ascend hardware enabling CANN [1] - The commercialization process of the Ascend ecosystem is accelerating, particularly in the finance, energy, and manufacturing sectors [1] Group 2 - By May 2025, the Ascend ecosystem is expected to develop over 6.65 million developers, more than 8,800 partners, and complete over 23,900 solution certifications [1] - The Cyberspace Administration of China recently interviewed NVIDIA regarding the security risks of the H20 chip, indicating a focus on domestic replacement strategies [1] - Zhongsoft International has maintained a long-term comprehensive cooperation with Huawei across various domains, including basic software and hardware, AI platforms, intelligent agents, and industry applications [1]

Group 1 - The main index failed to break through the 3400 mark, with southbound capital reaching 26.1 billion, the third highest since 2014 [1] - The Shanghai Composite Index peaked at 3392.41 points but closed with a total trading volume of nearly 1.7 trillion, an increase of 13.62% from the previous day [1] - Southbound capital showed volatility, with a net sell of 4 billion after a record high of 29.6 billion, indicating a complex trading environment [1] Group 2 - The AI computing power sector experienced a surge in the morning, with nearly 20 related stocks hitting the daily limit, but faced significant differentiation in the afternoon due to rumors regarding HXDX credit approval [2] - The market dynamics in the AI computing sector are influenced by the interplay between domestic and NVIDIA computing power, as well as competition among service providers [2] - The long-term demand for domestic computing power is confirmed, but market speculation remains intense, leading to a search for less competitive segments [2] Group 3 - The upcoming financial reporting period in March and April poses risks for high-valuation tech stocks, but core positioning may present opportunities [3] - Significant events in March related to AI computing and applications are anticipated, including major conferences and financial reports from key players like NVIDIA and Tencent [3] - The investment focus in the tech sector is shifting towards AI and robotics, with potential benefits for domestic server manufacturers and new technology breakthroughs [4] Group 4 - Major companies such as Alibaba, Tencent, and ByteDance are expected to have significant project tenders and launches in March, which could act as catalysts for the market [4] - The AI application sector is expected to see surprises, particularly in government AI and robotics from Huawei, Tencent, and ByteDance [4] - The current low institutional holdings in tech stocks may lead to valuation recovery if financial reports show order or revenue growth [4]