Investment Rating - The report initiates coverage with a rating of "Accumulate" for the company [6]. Core Insights - The company is a leader in IT infrastructure, actively promoting a domestic ecosystem in the server and storage sectors, which are expected to maintain high growth [2][11]. - The merger with Haiguang Information is anticipated to provide significant growth opportunities, with projected EPS for 2025-2027 being 1.71, 2.16, and 2.62 yuan respectively [11][18]. - The target price for the company is set at 133.91 yuan based on valuation methods including PE and PS [21]. Financial Summary - Total revenue is projected to grow from 14,353 million yuan in 2023 to 20,522 million yuan in 2027, with a CAGR of approximately 15.8% [5]. - Net profit attributable to the parent company is expected to increase from 1,836 million yuan in 2023 to 3,830 million yuan in 2027, reflecting a CAGR of 21.3% [5]. - The company’s net asset return rate is forecasted to rise from 9.8% in 2023 to 13.5% in 2027 [5]. Revenue and Profit Forecast - The IT equipment business is expected to see revenue growth of 15%, 18%, and 16% for 2025-2027, with gross margins of 28.34%, 29.34%, and 30.34% respectively [15][16]. - The software system integration and technical services related to high-end computers are projected to grow at rates of 12%, 15%, and 14% for the same period, with stable gross margins [15][16]. Industry Overview - The server market in China is projected to reach 249.21 billion yuan in 2024, with a year-on-year growth of 41.3%, and is expected to grow to 282.35 billion yuan in 2025 [15]. - The global server market is anticipated to reach 366 billion USD in 2025, with a year-on-year growth of 44.6% [32]. - The storage market in China is also expected to grow steadily, with the semiconductor storage market projected to reach 458 billion yuan by 2025 [41]. Competitive Landscape - The domestic server market is dominated by local manufacturers, with Inspur holding a 30.8% market share in the x86 server segment in 2024 [45][49]. - The company’s storage products include a comprehensive range, such as ParaStor distributed storage series and FlashNexus centralized all-flash storage series, which are well-positioned to benefit from market growth [47].

Core Viewpoint - The Tianjin Municipal Government has issued the "Tianjin Action Plan for Promoting Innovation and Development of Artificial Intelligence (2025-2027)", focusing on enhancing computing power technology and platform construction [1] Group 1: Support for Technology Development - The plan emphasizes support for breakthroughs in computing power technology and the construction of platforms [1] - It aims to promote the development of secure and reliable underlying technologies [1] - The establishment of high-performance intelligent chip R&D platforms is a key focus, including support for the research and iteration of core chips such as CPUs and GPUs [1] Group 2: Chip and System Development - The initiative supports the development of reconfigurable and integrated storage-computing systems, open-source instruction set architectures (RISC-V), edge computing chips, and high-speed communication network cards [1] - It promotes the research and development of AI operating systems, AI databases, and industrial software that integrate "cloud, edge, and terminal" technologies [1] - Support is also provided for the development of autonomous all-flash storage systems, AI servers, chip-on-board systems, and intelligent equipment [1] Group 3: Diverse Computing Power Platforms - The plan encourages the construction of diversified computing power platforms, including national supercomputing internet platforms and integrated computing power platforms that combine supercomputing, intelligent computing, and storage [1] - It aims to leverage the municipal computing power trading platform for the efficient coordination and scheduling of diverse computing resources [1] - The initiative includes plans for pilot testing of a national integrated computing power network monitoring and scheduling system [1] - There is a forward-looking layout for aerospace computing [1]

Group 1 - The core viewpoint of the articles highlights a renewed optimism among Wall Street regarding Chinese assets, driven by advancements in technology and supportive government policies [1][2] - Chinese stock markets have shown strong performance this year, with the Hang Seng Index rising nearly 20%, contrasting with declines in the S&P 500 and Nikkei 225 [1] - Major Chinese tech companies like Alibaba, Xiaomi, and BYD have experienced double-digit stock price increases, indicating a positive market sentiment [1][2] Group 2 - Financial executives from various institutions expressed confidence in investing in China, with Franklin Templeton's CEO stating that "China is absolutely worth investing in" [1][2] - The interest in Chinese technology sectors is growing among international investors, who are actively seeking partnerships with local institutions to access the mainland market [2] - The emergence of AI companies like DeepSeek has sparked significant interest, contributing to a 20 percentage point lead of the MSCI China Index over its U.S. counterpart this year [1][2] Group 3 - Concerns over inflation and tariffs have led to a prolonged downturn in the U.S. stock market, with significant declines in major tech stocks [3] - The volatility of U.S. government policies is causing global investors to seek safer markets, such as China, for investment opportunities [3]