Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][5]. Core Insights - The company's public cloud business shows steady growth, with hybrid and private cloud segments performing exceptionally well. The product matrix includes computing, networking, storage, databases, and cloud security, catering to various sectors such as mobile internet, entertainment, education, finance, and government [1]. - The AI computing platform and overseas expansion are driving growth, with a clear strategic layout. The "Kongming" AI computing platform supports diverse GPU access and offers distributed training capabilities, while the UModelVerse platform allows quick AGI application setup [2]. - Revenue projections for 2025-2027 are estimated at 1.84 billion, 2.23 billion, and 2.66 billion yuan, with net profits expected to be -76 million, 28 million, and 95 million yuan respectively, indicating a significant turnaround in profitability [3][4]. Financial Summary - The company's revenue for 2023 is projected at 1.515 billion yuan, with a decline of 23.17% from the previous year. However, a recovery is expected with a growth rate of 22.42% in 2025 [4]. - The net profit margin is expected to improve from -16.0% in 2024 to 3.6% in 2027, reflecting a positive trend in profitability [4]. - The company has a total market capitalization of approximately 17.12 billion yuan, with a share price range of 16.60 to 40.10 yuan over the past 12 months [5].

Core Insights - The global chip industry is experiencing a new wave of technological iteration and market growth driven by advancements in artificial intelligence, smart driving, and industrial intelligence [1] - Domestic chip research and manufacturing have become a strategic focus in national technological competition, emphasizing the need for independent development [1] Group 1: Challenges in Chip Design - The chip design process faces increasingly complex simulation and verification tasks, requiring high computational power, storage performance, and resource flexibility [1] - Traditional self-built data center models are struggling to meet the rapid iteration demands due to limitations in scalability, high costs, and complex operations [1] Group 2: UCloud's Solutions - UCloud has developed a centralized "computing power zone" at the Shanghai Qingpu Intelligent Computing Center, supporting rapid delivery and private deployment of over a thousand physical servers [2] - This zone provides high-performance GPU/CPU servers and low-latency networks, enabling a hybrid cloud architecture that connects securely with clients' local data centers [2] - UCloud's solutions allow chip companies to flexibly allocate resources based on project progress, significantly reducing cost pressures from idle computing power and shortening product development cycles [2] Group 3: High-Performance Storage Development - UCloud has independently developed the UPFS parallel file storage product, which addresses the I/O performance, scalability, and stability demands of EDA tools during chip design [3] - UPFS offers microsecond-level latency and terabyte-per-second throughput, supporting linear performance and capacity expansion even with increasing parallel tasks [3] - The product has been successfully implemented in several chip companies' simulation environments, enhancing their ability to conduct large-scale netlist simulations and physical verifications [3] Group 4: Comprehensive Support for Chip Localization - UCloud provides extensive support for chip companies across various dimensions, including network, security, and operations [4] - The Qingpu Intelligent Computing Center offers high-quality network access and low-latency transmission, while UCloud's self-developed UXR hybrid cloud gateway cluster enables T-level cross-cloud network forwarding [4] - UCloud's chip cloud solutions have served numerous leading domestic chip design firms, covering a range of fields from autonomous driving chips to AI acceleration chips, facilitating the entire development process from architecture exploration to prototype verification [4] Group 5: Commitment to Future Development - UCloud is committed to the rise of domestic chips through continuous innovation and iteration of foundational infrastructure [4] - The company plans to increase investment in high-performance computing, storage, and chip cloud solutions, optimizing resource scheduling and ecosystem service capabilities [4] - UCloud aims to support the construction of a secure, efficient, and open research environment for China's chip industry, achieving critical breakthroughs in global technological competition [4]