Industry Investment Rating - The industry investment rating is "Outperform the Market" and is maintained [2][9] Core Viewpoints - The report highlights significant advancements in AI computing power, particularly with the launch of OpenAI's GPT-5, which has reduced error rates and improved efficiency, leading to increased demand for reasoning computing power [5] - The report notes that major cloud service providers in North America are expected to significantly increase capital expenditures, particularly in AI cloud infrastructure, which will drive demand for high-end AI servers [5] - There is uncertainty regarding the supply-demand dynamics of the H20 chip in China, but long-term demand for reasoning computing power remains strong due to advancements in large model capabilities and domestic chip performance improvements [6] Summary by Relevant Sections Industry Basic Situation - The closing index is at 5119.4, with a 52-week high of 5440.49 and a low of 2805.53 [2] Recent Developments - The report discusses the successful mass production of the GB200 series by Industrial Fulian, with server revenue growth exceeding 50% in Q2 2025, driven by AI-related business [5] - The report emphasizes the importance of AI computing power supply chains and the potential impact of geopolitical factors on the availability of H20 chips [6] Investment Recommendations - The report suggests focusing on opportunities within the AI computing power industry chain, including: 1. GPU and servers: companies like Cambrian, Digital China, and others 2. Liquid cooling solutions: companies such as Invec, Shuguang Data, and others 3. Power supply solutions: companies like Megmeet, European Communication, and others 4. Diesel power generation: companies such as Weichai Heavy Machinery and others 5. AIDC: companies like Data Port, Kehua Data, and others 6. Optical modules: companies such as Zhongji Xuchuang, Tianfu Communication, and others [7]

Core Insights - The report highlights the ongoing growth and investment in the AI computing infrastructure, driven by both domestic and international demand for AI applications [3][6][10] - The report emphasizes the strong performance of Industrial Fulian, with significant revenue and profit growth in the first half of 2025, indicating a robust business model and market position [9][11] AI Computing Industry - The AI computing supply chain is expected to accelerate, supported by rising domestic advanced process yields and collaborative efforts among various industry players to build a robust AI computing foundation [3][6] - Alibaba plans to invest over 380 billion yuan in cloud and AI hardware infrastructure over the next three years, indicating a strong capital expenditure trend in the domestic AI sector [6] - The report notes that the yield of Huawei's Ascend 910C chip has reportedly reached 40%, reflecting significant improvements in manufacturing processes and management [7] - The Chinese government is actively promoting the "Artificial Intelligence +" initiative, aiming to enhance the commercialization of AI technologies across various sectors [7] Industrial Fulian - Industrial Fulian reported a revenue of 360.76 billion yuan and a net profit of 12.11 billion yuan in the first half of 2025, representing year-on-year growth of 35.58% and 38.61% respectively [9] - The company’s cloud computing business saw server revenue growth exceeding 50%, with AI server revenue increasing by over 60% year-on-year [11] - The report anticipates significant capital expenditure growth from major North American cloud service providers in 2025, particularly in AI infrastructure, which will drive demand for high-end AI servers [10]

Investment Rating - The industry investment rating is "Outperform the Market" [12] Core Viewpoints - The AI computing power supply chain is accelerating, driven by advanced processes and policies supporting domestic production. The report anticipates a rapid increase in domestic AI applications and a robust ecosystem [1] - The report highlights that with the improvement in the yield of advanced processes, the supporting supply chain is expected to see accelerated growth, maintaining the "Outperform the Market" rating [1] - The report emphasizes the importance of domestic AI computing power as a foundational support for AI technology, with significant capital expenditure expected in the domestic AI sector [5] Summary by Sections Investment Suggestions - Recommended companies to focus on include: - Computing Chips: Cambrian, Haiguang Information - Advanced Manufacturing: SMIC, Huahong Group, Yongxi Electronics - HBM: Huahai Chengke, Lianrui New Materials - PCB/CCL: Shenzhen Circuit, Founder Technology, Nanya Technology, Shengyi Technology - High-speed Backplane Modules: Huafeng Technology - Power Capacitors: Taijia Co., Oulu Tong, Jianghai Co. - Liquid Cooling: Feirongda, Shenling Environment, Shuguang Digital Innovation, Hongrid [3] Supporting Rating Points - The report notes that the yield of Huawei's Ascend 910C has reportedly reached 40%, indicating significant improvements in manufacturing processes and management, which is expected to lead to increased shipments of the 910C series products [5] - The report mentions the Chinese government's commitment to implementing the "Artificial Intelligence +" initiative, which aims to promote the large-scale commercialization of AI applications across various sectors, leveraging China's complete industrial system and large market scale [5]

Key Insights - The report highlights a focus on the humanoid robot industry, which has seen a significant increase in market attention, with the National Securities Robot Industry Index rising by 7.6% from July 7 to July 18, 2025 [6][8] - Major factors driving this resurgence include substantial orders from leading companies, capital acquisitions, influential statements from industry leaders, and supportive government policies aimed at fostering innovation in humanoid robotics [7][8] - The report also notes that the active equity fund median position reached 90.63% in Q2 2025, indicating a historical high and a shift towards increased allocations in TMT, Hong Kong stocks, and machinery sectors [9][10] Humanoid Robot Industry - The humanoid robot market is experiencing a revival, with key players like China Mobile placing significant orders, which serve as a validation of product functionality and market readiness [6][7] - The report identifies a trend of increased capital activity, with companies pursuing mergers and acquisitions to enhance their market positions [7] - Government initiatives are also playing a crucial role, with policies aimed at promoting the development of humanoid robots and related technologies [8] Active Equity Fund Analysis - The report indicates that the highest allocation sectors for active equity funds in Q2 2025 were TMT (23.37%), Hong Kong stocks (20.41%), and machinery (19.68%), reflecting a strategic shift in investment focus [9][10] - The report emphasizes that the current allocation levels are above historical averages for several sectors, indicating a bullish sentiment among fund managers [9][10] AI Computing Industry - The AI computing supply chain is entering a phase of maturity, driven by advancements in generative AI and large language models, leading to a closure of the demand-supply loop [11][12] - The report highlights that the infrastructure for AI computing is expected to see continued investment, with significant growth in demand for high-end AI servers [12][13] - The competition in the PCB industry is intensifying due to the rising demand for AI servers, with a projected 150% increase in demand for high-density interconnect (HDI) boards [13]

Market Overview - On July 17, the trading volume of North Exchange A-shares reached 21.16 billion yuan, an increase of 1.28 billion yuan from the previous trading day[3] - The North Exchange 50 Index closed at 1428.1, up 0.9%, with a PE TTM of 67.79 times[3] - The North Exchange Specialized and New Index closed at 2438.2, up 0.8%[3] Stock Performance - Among 268 companies on the North Exchange, 140 rose, 11 remained flat, and 117 fell[3] - The top five gainers were: Huiwei Intelligent (14.8%), Hongyu Packaging (11.8%), Jiahe Technology (10.8%), Guangxin Technology (9.8%), and Wuxin Tunnel Equipment (8.7%)[3] - The top five losers were: Guangzi International (-7.3%), Yunchuang Data (-6.3%), Benlang New Materials (-4.8%), Fangsheng Co. (-3.5%), and Taipeng Intelligent (-3.3%)[3] Key News - National electricity load reached a historical high of 1.506 billion kilowatts, an increase of 0.055 billion kilowatts from last year[5] - The adjustment of consumption tax policy for ultra-luxury cars now applies to vehicles priced at 900,000 yuan or above (excluding VAT)[5] Investment Recommendations - Focus on sectors like AI computing, innovative pharmaceuticals, humanoid robots, and power grid construction as key market drivers[6] - The report suggests paying attention to specialized and new companies with strong performance certainty, especially in new productivity areas[6]