Summary of Conference Call on NVIDIA's Rubin CPX Solution and PCB Industry Company and Industry Involved - **Company**: NVIDIA - **Industry**: PCB (Printed Circuit Board) and related equipment Key Points and Arguments NVIDIA's Rubin CPX Solution - The Rubin CPX solution integrates 36 CPUs, 144 GPUs, and 144 CPX GPUs, significantly enhancing computing efficiency, with performance improvements of approximately 650% compared to the GB 300 NVA 72 cabinet when processing large contexts [1][2] - The new cabinet design includes 8 additional CPX chips, necessitating the addition of two PCBs: one for supporting the CPX chips and another for the new orthogonal middle plane connection, replacing traditional copper cable connections, which enhances reliability and reduces failure points [2][5] - The power density of the new CPX cabinet is increased to 370 kW, compared to the conventional 190 kW, requiring advanced cooling systems and higher demands on power supply and PCB layout [2][4] Impact on PCB Industry - The introduction of the CPX chips is expected to increase the number of PCB layers from 20-30 layers to 70-80 layers or even over 100 layers, significantly increasing drill bit consumption and reducing the lifespan of drilling materials like the 麻九 material to below 200 holes [3][9] - The new design is projected to add approximately $150-$200 in value per single chip PCB, with shipments expected to start in the second half of 2026, further impacting both PCB and upstream equipment materials [3][10] Material and Structural Upgrades - The orthogonal middle plane requires high signal transmission standards, necessitating material upgrades such as the use of 麻九 material, which will increase demand for both equipment and materials, leading to a rise in both quantity and price [6][8] - Future developments in the Rubin series will continue to focus on material and structural upgrades, with confirmed use of 麻九 material in the exchange tray section, while the calculation tray's material is still under verification [7][8] Recommendations and Market Outlook - Companies such as 鼎泰高科 and 大族数控, which are leaders in mechanical drilling, are expected to benefit significantly from the increased demand for high-layer PCBs [3][9] - Forward-looking investment suggestions include focusing on ultra-fast laser technology companies like 大族数控 and 迪尔激光, as well as high-end exposure equipment leaders like 芯碁微装, which are positioned to capitalize on the evolving market dynamics [11][12] Other Important Insights - The transition to wireless designs is deemed necessary due to the increased complexity and density of the new systems, which will drive further advancements in the PCB industry towards higher density and reliability [4]

Core Viewpoint - The Shanghai Municipal Communications Administration has announced a special action plan for the high-quality development of computing power infrastructure by 2025, focusing on optimizing the layout of computing power centers and enhancing their capabilities [1] Group 1: Infrastructure Development - The plan aims to accelerate the construction of computing power centers that have already obtained energy consumption indicators, with a target of establishing at least 5 large-scale computing power centers by the end of 2025 [1] - The city aims to achieve a computing power scale of over 100 EFLOPS (FP16) for its computing power centers by the end of 2025 [1] Group 2: Edge Computing and Collaboration - The initiative includes the completion of at least 5 edge computing node construction cases in industrial parks, research institutes, and universities [1] - Proposed computing power centers are required to strengthen coordination with the city's power planning layout, ensuring that the design plans include feasible external power access solutions [1] Group 3: Storage Capacity and Resource Management - The plan emphasizes the need to enhance the proportion of advanced storage capacity in computing power centers, targeting over 30% by the end of 2025 [1] - It explores a "separation of storage and computing" model for deployment within a 100-kilometer metropolitan area, promoting compatibility and efficient integration between storage resources and intelligent computing multi-cloud container platforms [1]

Summary of the Conference Call for Zhongcai Technology Industry Overview - The conference call primarily discusses Zhongcai Technology's performance in the high-end materials market, particularly focusing on OPE (Optical Performance Enhancer) and carbon hydrogen resin sectors [2][3]. Key Points and Arguments 1. **OPE Orders and Delivery**: Zhongcai Technology has a robust order book for OPE, with expected deliveries of 30-35 tons this month. The company anticipates a significant increase in carbon hydrogen resin deliveries from 40 tons in July to 50-60 tons in Q4, indicating strong growth momentum [2][3]. 2. **AI Development Impact**: The advancement of AI necessitates improvements in both computing power and algorithms. Domestic large models are lagging in speed and performance compared to international counterparts, primarily due to hardware patent restrictions. This has led to increased capital market interest in computing power enhancements [2][4]. 3. **International Market Development**: The high-speed digital business has transitioned from materials like Ma 6 and Ma 7 to Ma 8, which is now mature in international markets. The company plans to start transitioning to Ma 9 in Q3, with expectations of a significant ramp-up in Q4 and a full-scale explosion in 2026, positioning Zhongcai as a mainstream supplier [2][5]. 4. **Material Composition Changes**: The Ma 9 numerical system reduces OPE components while increasing the use of carbon hydrogen resin. This change aims to optimize medium loss from 8/10,000 in Ma 8 to between 5/10,000 and 6/10,000, catering to lower-tier market demands [2][6][7]. 5. **Carbon Gold Product Production**: The production of carbon gold products is expected to reach 40 tons in July, increasing to 50-60 tons in Q4. Demand from major clients has doubled, with the company capturing 70-80% of the domestic market share in special carbon fiber quality [2][8][9]. 6. **Capacity and Demand**: Zhongcai Technology does not face capacity bottlenecks, with a monthly production capacity of 80 tons and an annual capacity of 3,500 tons at the Meishan plant. The increase in orders in the second half of the year is attributed to rising market demand rather than taking market share from other suppliers [2][11][12]. 7. **Pricing Trends**: The price of Ma 9 resin is expected to be five times that of Ma 8, with Ma 8 carbon fiber priced around 500,000 yuan per ton and Ma 9 projected to be between 2-4 million yuan per ton. Variations in carbon fiber structures among manufacturers may limit the potential for changes post-stabilization [2][19][20]. 8. **Market Dynamics**: There are currently no explicit price reduction demands from clients, and high-end products like gold paper have not seen price declines. The market remains stable, with companies focusing on their supplier situations [2][14][16]. 9. **Future Production Plans**: The Meishan base's capacity release is scheduled for 2026, with the potential to support production volumes of several hundred tons after upgrades [2][15]. 10. **Competition and Market Share**: The OPE market share is difficult to predict, but if demand doubles by the end of 2026 and existing suppliers cannot meet it, Zhongcai Technology may increase its market share [2][17]. Additional Important Insights - **Technical Barriers**: The chemical industry faces significant technical barriers due to the experience required for production. Many companies are interested in entering the field, but achieving stable mass production and customer certification remains challenging [2][24]. - **Client Preferences**: Domestic downstream clients currently prefer using carbon hydrogen materials over PTFE materials, indicating a shift in material preferences [2][21]. - **Future Projections**: The expected shipment volume for special carbon crystals in 2026 is projected to reach at least 10 tons, with a total annual volume of around 180 tons, which is substantial given the high price range [2][26].

Investment Rating - The report assigns an "Accumulate" rating for the company, marking the first coverage [6]. Core Views - The company is a leader in the communication power supply industry, benefiting from the increase in computing power in AI data centers [1][15]. - The growth in data center power supply is driven by the rapid increase in computing power and the expansion of 5G networks, which significantly boosts energy demand [2][31]. - The company has a strong position in the HVDC market, which is expected to see accelerated penetration due to its advantages over traditional UPS systems [2][36]. - The renewable energy installation in China is projected to reach new heights, driving demand for new power systems [3][51]. - The company is well-positioned to benefit from the growth in electric vehicle charging infrastructure, with a significant increase in the number of new energy vehicles [3][56]. Summary by Sections Communication Power Supply Industry - The company has been focused on the power supply sector for 29 years and is recognized as a leader in the industry [15]. - The revenue from data center power supply is expected to grow significantly, with a projected increase of 111.05% year-on-year [17]. - The company maintains a stable shareholding structure, reflecting management's confidence in future growth [20]. Data Center Power Supply & Site Energy - The global computing power scale has grown rapidly, with a CAGR of 46.5% from 2020 to 2023, reaching 1369 EFLOPS [2][31]. - The number of 5G base stations in China is expected to reach 4.251 million by the end of 2024, with a CAGR of 53.24% [2][43]. - The power consumption of 5G base stations is significantly higher than that of 4G, necessitating upgrades to power systems [2][47]. Power Supply & Charging Piles - The new energy installation capacity in China is projected to reach 358 million kilowatts in 2024, accounting for 82.6% of new energy installations [3][51]. - The number of new energy vehicles registered in China is expected to grow by 51.49% in 2024, driving demand for charging infrastructure [3][56]. - The company is one of the earliest players in the new energy vehicle charging pile market, with a comprehensive product line [3][58]. Financial Forecast and Valuation - The company is expected to achieve total revenues of 28.47 billion, 38.91 billion, and 47.96 billion yuan from 2025 to 2027, with year-on-year growth rates of 45.1%, 36.7%, and 23.3% respectively [3][68]. - The net profit attributable to the parent company is projected to be 1.57 billion, 2.13 billion, and 2.76 billion yuan for the same period, with growth rates of 43.2%, 36.0%, and 29.5% respectively [3][68].