Recently, the three major domestic communication operators announced the purchase of servers, and the proportion of domestic servers is very large. With the start of the "East Number West Calculation" project, domestic servers may usher in a period of accelerated development of the industry. And which of these representative companies?
On February 26, according to the official website of China Telecom, China Telecom's centralized server procurement project for 2022-2023 has completed the review, and the bidding scale is estimated to be 200,000 units, of which domestic servers account for more than 25%. On February 17, China Mobile released the "Centralized Procurement of PC Servers from 2021 to 2022 (Batch 1) (Standard Package 8 and 13)", in which domestic server manufacturers won a total of about 2.5 billion yuan. On February 25, China Unicom released the "2022 China Unicom Artificial Intelligence Server Centralized Procurement Project Bidding Candidate Announcement", the proportion of localization servers is also very high, Xiangjiang Kunpeng won the bid for package two, the total bidding price of 145 million, the share of 50%.
Recently, with the launch of one of the new infrastructure projects, "East Counting and West Counting", a wave of enthusiasm has emerged in the related computer communication industry. Dongxing Securities believes that "East Number West Calculation" drives the expansion of the industry, which is good for upstream server manufacturers.
In the above procurement projects, the localization server accounts for a large proportion of the procurement of the three communication operators, but this is not a sudden but a long history. Taking China Telecom as an example, this is not the first large-scale procurement of domestic servers by China Telecom, and the two centralized procurements from 2020 to 2022 have greatly increased the scale of demand for domestic servers, which shows the mature application of localization servers in the operator industry. The "East Counting West" project may accelerate the rapid growth of the localization server market.
The growth of the server industry is very obviously affected by downstream demand and policies, and the expansion of the industry is crucial to the growth of leading manufacturers. Recently, a number of ministries and commissions jointly issued a notice agreeing to start the construction of national computing power hub nodes in 8 places and planning 10 national data center clusters, and the "East Counting West" project was officially launched.
Up to now, the scale of domestic IDC has reached 5 million standard racks, and the computing power has reached 130EFLOPS, and it is expected to maintain a growth rate of more than 20% per year. The landing of the "East Counting West Calculation" policy once again reaffirms the basic role of the computing power foundation in the trend of digital transformation, and various localities have also successively introduced relevant landing policies to promote the computing power improvement project.
The bearing object of "East Number West Calculation" is IDC and cloud computing IAAS vendors, etc., the most basic hardware form of IDC and cloud computing is all kinds of servers, computing power expansion directly increases server demand, and the expansion of the domestic market is bringing significant market opportunities to server manufacturers. With the planning and construction of data center clusters, the demand for servers is strongly supported, and the average shelf rate of data centers in the planned clusters should reach at least 65%, and server manufacturers are expected to benefit. In addition, the current domestic production rate of the server market is still at a low level, and the increase in the domestic substitution ratio is doubly beneficial to domestic server manufacturers.
Sugon is a leading domestic server company. The company is the largest shareholder of Haiguang Information, a leading manufacturer of domestic x86 processors, holding 32.1% of the shares, and is an important promoter of the industrialization of scientific and technological achievements of the Chinese Academy of Sciences, promoting the landing of the domestic server market, and is expected to take the lead in benefiting. The author once wrote in the article "Chip Giants Staged the "Romance of the Three Kingdoms": Three Families Returning to Jin or Fighting Each Other? The current CPU architecture has been introduced.
The three most critical architectures for CPUs today are X86, ARM, and RISC-V. The x86 architecture is a very important architecture in the server market (also the personal PC market), and it is almost a monopoly position in terms of market share. And so far, the only companies that have the X86 permanent license are Intel and AMD, both of which are American companies. At this time, the importance of server localization is self-evident, which is related to the height of strategic security.
In this context, As a leading domestic server enterprise, Sugon has undertaken a special mission.
On February 23, Sugon announced the release of the 2021 performance express:
In 2021, the total operating income was 11.183 billion yuan, an increase of 10.06% year-on-year, the net profit attributable to the mother was 1.135 billion yuan, an increase of 37.98% year-on-year, and the non-net profit was 753 million yuan, an increase of 43.23% year-on-year. The increase in the Company's net profit was mainly due to the increase in the Company's gross profit and the increase in the net profit of associated enterprises recognized investment income. In the single quarter of Q4, the revenue was 4.691 billion yuan, an increase of 11.32% year-on-year, the net profit attributable to the mother was 668 million yuan, an increase of 34.14% year-on-year, and the non-net profit was 517 million yuan, an increase of 37.50% year-on-year.
In addition to the performance growth, Haiguang Information is about to be listed, and Sugon is expected to benefit from the revaluation of value. According to the announcement of Haiguang Information, in 2020, the market share of Haiguang information chips in the server chip is about 5%, and the operating income of that year is 1.022 billion yuan, an increase of about 170% year-on-year, and the development momentum of Haiguang is rapid. (The following information comes from The Prospectus Of Haiguang Information)
Haiguang Information's main products are Haiguang General Purpose Processor (CPU) and Haiguang Coprocessor (DCU). Haiguang CPU series products are compatible with x86 instruction set and international mainstream operating systems and application software, excellent performance, rich software and hardware ecology, safe and reliable, has been highly recognized by domestic users, has been widely used in telecommunications, finance, Internet, education, transportation and other important industries or fields. Based on the GPGPU architecture, Haiguang DCUs are compatible with the general CUDA-like environment and the international mainstream commercial computing software and artificial intelligence software, with rich software and hardware ecology, and can be widely used in big data processing, artificial intelligence, commercial computing and other application fields.
At present, Haiguang CPU series products Haiguang No. 1 and No. 2 have achieved commercial applications, since 2018, inspur, Lenovo, New H3C, Tongfang and many other well-known domestic server manufacturers' products have been equipped with Haiguang CPU chips, and successfully applied to ICBC, Bank of China and other financial sector customers, PetroChina, Sinopec and other energy and chemical industry customers, and have been widely used in the data center business of telecom operators. At the same time, Haiguang No. 3 is in the verification stage, and Haiguang No. 4 is in the research and development stage.
Haiguang DCU series product Shensuan No. 1 has achieved small batch production, and Shensuan No. 2 is in the research and development stage. From 2018 to 2020, Haiguang Information achieved revenue of 0.48, 3.79 and 1.022 billion yuan, an increase of 255%, 686% and 170% year-on-year. On November 8, 2021, Haiguang Information's application for listing on the Science and Technology Innovation Board has been accepted, and at present, Sugon holds 32.1% of the equity of Haiguang Information, and the company is expected to benefit from its revaluation.
In terms of market conditions, at present, many securities companies have disclosed that they are optimistic about investing in "gold stocks" in March. As of February 28, from the perspective of the number of recommended stocks, GUANGZHOU AUTOMOBILE Group, Zhongke Shuguang and Bank of Ningbo have all received joint recommendations from 3 securities companies. Divided into Shenwan first-level industries, the above stocks belong to the automotive, computer, and banking sectors.
However, it should be reminded that The company announced on February 23 that the relevant data of the company's performance express (announcement number: 2022-001) disclosed on the same day has included the asset impairment provision of this provision for about 2021 (of which the inventory impairment is about 100 million and the intangible asset impairment is about 700 million), an increase of 500 million over the overall asset impairment in 2020. Dongxing Securities believes that "mainly the fluctuation of inventory prices has a certain controllable impact".
Xu Yuanyao