Core Viewpoint - The report from Guosheng Securities highlights that Inspur Information achieved a net profit attributable to shareholders of 799 million yuan in the first half of the year, representing a year-on-year increase of 34.87% [1]. Financial Performance - The net profit attributable to shareholders after deducting non-recurring gains and losses was 672 million yuan, showing a year-on-year growth of 61.1%, which aligns with market expectations [1]. Product Innovation - The company launched the Yuan Nao R1 inference server, which is the first in the industry to support 16 standard PCIe double-width cards in a single machine [1]. - Inspur Information released the Yuan Nao Qizhi DeepSeek integrated machine to empower customers and partners for rapid deployment of large models [1]. - In the storage sector, the company introduced the high-end storage product HF18000G7, featuring an innovative Yuan Pan architecture and iTurbo 7.0 intelligent engine [1]. Comprehensive Solutions - The company provides a full lifecycle overall solution for liquid-cooled data centers, from planning and design to construction and implementation, aimed at creating green and energy-efficient data center turnkey projects for users [1]. Patent and Standardization Efforts - Inspur Information is actively engaging in patent layout in the liquid cooling field and is leading standard construction, laying the foundation for excellent domestic liquid cooling solutions to enter the global market [1]. Industry Outlook - In the medium to long term, the rapid development of AIGC (Artificial Intelligence Generated Content) in China and vigorous investment in computing power are expected to benefit the company as a leading server manufacturer amid technological advancements [1].

Core Viewpoint - The company reported strong financial performance in the first half of 2025, with significant growth in revenue and profit, indicating sustained high demand for computing power in the domestic market [1][2]. Financial Performance - In H1 2025, the company achieved revenue of 80.192 billion yuan, a year-on-year increase of 90.05%, and a net profit attributable to shareholders of 799 million yuan, up 34.87% year-on-year [1]. - In Q2 2025, the company recorded revenue of 33.334 billion yuan, a year-on-year growth of 36.30%, and a net profit of 336 million yuan, reflecting a 15.63% increase year-on-year [1]. - The company's gross margin in Q2 2025 was 6.09%, an increase of 2.64 percentage points quarter-on-quarter, while the net profit margin was 1.01%, up 0.03 percentage points quarter-on-quarter [1]. Market Position - The company maintains a leading position in the server market, with its server and storage products consistently ranking among the top globally [1]. - In Q1 2025, the company held the second-largest global market share in servers and the largest in China, while its storage installation capacity ranked among the top three globally and first in China [1]. Innovation and Development - The company has been increasing its R&D investment to drive innovation in computing power and algorithms [2]. - In 2025, the company launched the Yuan Brain R1 inference server, which supports 16 standard PCIe double-width cards, and introduced the Yuan Brain CPU inference server for efficient deployment of new generation inference models [2]. - The company also rolled out the Yuan Brain Enterprise Intelligence DeepSeek integrated machine and the EPAI platform to facilitate AI application development across various industries [2]. Liquid Cooling Strategy - The company has adopted a comprehensive strategy for liquid cooling, leading the domestic market in this area for four consecutive years [3]. - The Yuan Brain computing factory, which began operations in early 2025, has improved the load capacity of air-cooled cabinets to 50kW and liquid-cooled cabinets to 130kW, achieving a PUE value below 1.1 [3]. Investment Outlook - As a leading domestic server manufacturer, the company is expected to benefit from the growth of the AI industry and increasing demand for liquid cooling solutions [3]. - The projected EPS for 2025 and 2026 are 2.05 yuan and 2.72 yuan, with corresponding PE ratios of 31 and 23 times [3].

Investment Rating - The report maintains a "Buy" rating for Inspur Information (000977) [5][8] Core Views - The company achieved double-digit growth in revenue and profit in the first half of 2025, confirming the sustained high demand for computing power in China [6] - Inspur Information holds a leading position in the server market, with a global market share ranking second in servers and among the top three in storage products [6] - The company is actively investing in R&D to drive innovation in computing power and algorithms, launching several new products and platforms to enhance AI application development [6] Financial Performance Summary - For the first half of 2025, the company reported revenue of 801.92 billion yuan, a year-on-year increase of 90.05%, and a net profit attributable to shareholders of 7.99 billion yuan, up 34.87% [6] - In Q2 2025, revenue reached 333.34 billion yuan, growing 36.30% year-on-year, with a net profit of 3.36 billion yuan, reflecting a 15.63% increase [6] - The company's gross margin improved to 6.09% in Q2 2025, up 2.64 percentage points from the previous quarter [6] Market Position and Innovations - Inspur Information's server and storage products maintain a strong market presence, with the company being the top player in liquid-cooled servers in China for four consecutive years [6] - The launch of the Yuan Brain R1 inference server and other innovative products positions the company to meet the growing demand for high-performance computing solutions [6] - The company has signed partnerships with 166 seed partners for its EPAI platform, promoting the rapid deployment of large models across various industries [6] Earnings Forecast - The projected total revenue for 2025 is 156,531.11 million yuan, with net profit expected to reach 3,017.20 million yuan, resulting in an EPS of 2.05 yuan [7] - The company anticipates continued growth, with EPS estimates of 2.72 yuan for 2026 and 3.32 yuan for 2027, reflecting a PE ratio of 23 and 19 respectively [7]

Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company has shown continuous high revenue growth, leading the liquid cooling field standard construction [6] - The company's server business is leading the global market, with significant revenue contributions from server products [6] - The company is focusing on AI technology integration and innovation, enhancing its competitive advantage in the intelligent computing sector [6] Financial Performance Summary - In H1 2025, the company achieved revenue of 80.192 billion yuan, a year-on-year increase of 90.05% [6] - The adjusted net profit attributable to the parent company was 799 million yuan, with a year-on-year growth of 34.87% [6] - The gross profit margin for H1 2025 was 4.55%, showing a decline compared to previous periods [6] - The company is expected to generate revenues of 156.036 billion yuan, 176.488 billion yuan, and 196.135 billion yuan for the years 2025, 2026, and 2027 respectively [4][6] Market Position and Product Development - The company maintains a leading position in the server and storage market, ranking second globally in server market share and first in China as of Q1 2025 [6] - The company has launched several innovative products, including the Yuan Brain R1 inference server and high-end storage solutions, enhancing its product portfolio [6] - The company has been recognized as the top player in the liquid cooling server market in China for four consecutive years [6] Profitability Forecast - The forecasted net profit attributable to the parent company for 2025, 2026, and 2027 is 2.811 billion yuan, 3.231 billion yuan, and 3.806 billion yuan respectively [4][6] - The expected earnings per share (EPS) for the same years are projected to be 1.91 yuan, 2.20 yuan, and 2.59 yuan respectively [4][6]