The emerging track has ushered in an upward cycle, and the performance of listed companies in related sectors has continued to improve. On April 29, Hong Kong-listed company Shandong High Holdings (00412. HK) released its 2023 annual report, benefiting from the improvement of the investment business in the emerging industry of green power + computing power, with a revenue of HK $5.529 billion, a year-on-year increase of 31.85%, and a profit of HK $548 million, a year-on-year increase of 221.62%.
Driven by performance growth, the share price of Shandong High Holdings hit a new high of HK$7.31 per share, closing up 4.15% at HK$7.28 per share on the day. As an important overseas investment, financing and industrial holding platform under Shandong High-speed Group, Shandong High Holdings has accelerated the cultivation of new quality productivity led by green computing power through capital empowerment since its transformation into an industrial investment group. Up to now, the assets of emerging industries of Shandong High Holdings have reached HK$58.6 billion, accounting for nearly ninety percent of the total assets.
Policies continue to catalyze the acceleration of domestic computing power and promote greening
Since 2023, the integration of computing power and energy has been frequently mentioned.
At the policy level, in October 2023, the Ministry of Industry and Information Technology and other six departments jointly issued the Action Plan for the High-Quality Development of Computing Infrastructure, proposing quantitative indicators for development by 2025 from four aspects: computing power, carrying capacity, storage capacity, and application empowerment, and deploying 25 key tasks in six aspects, including promoting the development of green and low-carbon computing power. A month later, the National Development and Reform Commission and other departments jointly issued the "Implementation Opinions on Accelerating the Construction of a National Integrated Computing Network for the In-depth Implementation of the "Eastern Data and Western Computing" Project", proposing that by the end of 2025, a two-way coordination mechanism for computing power and electricity will be initially formed, and the proportion of green electricity in new data centers in national hub nodes will exceed 80%, drawing a clear line for the energy supply and electricity consumption of data centers.
In the industry, it has become a consensus to increase the utilization rate of green electricity in data centers, and source-grid-load-storage is expected to become an important starting point for improving the stability of data centers and increasing the proportion of renewable energy applications.
Companies in the industry are already seeing this trend. Since last year, many enterprises have planned to lay out the "computing power + electricity" model, and in the past six months, the bidding amount of the national intelligent computing center has exceeded 10 billion. It can be said that with the continuous catalysis of policies, clarifying the development direction of new quality productivity will effectively enhance the confidence of investors and enterprises in the industry.
Aiming at the emerging track, Shandong Gao Holdings has also already laid out. Since the second half of 2021, Shandong High Holdings has promoted the strategic transformation to an emerging industry investment holding group, focusing on the new quality productivity in the era of computing power, and has successively completed the layout of new energy + new infrastructure industry, ranking among the concept stocks of "computing power + power". Specifically, in 2022, Shandong Gao Holdings Holdings acquired Hong Kong-listed company Shandong New Energy (01250. HK), a key step in strategic transformation. At the end of last year, CSHL entered the computing power track by investing in VNET, China's first US-listed IDC company, and promoted the formal formation of a synergistic linkage pattern between its green energy industry and data center industry.
It is not difficult to see that CSHL continues to promote the integrated development of digital intelligence, artificial intelligence and energy and power sectors, and a series of measures to optimize the layout of new energy according to local conditions, which not only meets the national requirements for clean energy development, but also enjoys market dividends under the guidance of policies.
Sample of capital empowerment industrial transformation CSHL helps cultivate new quality productivity
In recent years, the mainland's renewable energy and new energy industries have developed rapidly, and investment in the new energy sector has also soared. With the proposal of new quality productivity and being included in the 2024 government work report for the first time, it has become one of the keywords that has attracted the most attention at present and in the future, and how finance can empower the development of new quality productivity with high quality has become an important proposition of great concern to all sectors of society.
Niu Wenxin, chief commentator of China Economic Weekly, said in an article that building a healthy Chinese equity capital market is of great strategic value for the development of new quality productivity and the promotion of high-quality development. He pointed out that the capital to support innovation should be based on long-term capital finance, of which equity capital finance should be the mainstay, supplemented by debt capital finance. He believes that only equity investors are "expected investors", and their attention to the future of enterprise development is far greater than the company's past and current earnings, which is an indispensable key source of capital for the development of innovative enterprises.
Taking equity investment as the starting point and firmly developing emerging industry assets is exactly the moment of CSTL. As an overseas investment and financing and emerging industry holding platform of Shandong High-speed, a state-owned enterprise, the two major emerging track investments that have been carried out by Shandong High Holdings are focused on long-term returns.
In 2022, after subscribing for new shares, CSH has carried out all-round and powerful investment and management empowerment in terms of capital, resources, brand and mechanism, and has achieved remarkable results.
In 2023, Shangao New Energy, a subsidiary of Shandong High Holdings, added 1.6GW of wind and solar development indicators, not only recovering the incremental business in an orderly manner, but also successfully obtaining the bid for a total installed wind power capacity of 387.5MW in Heze City in the competition for centralized onshore wind power projects in Shandong Province, becoming the largest wind power project independently developed by the company. In addition, SEA New Energy has successively tailored comprehensive green energy management solutions for leading enterprises in the industry such as COFCO, SF Group, BEWG, Honglu Steel Structure, etc., and its competitiveness and influence in the new energy industry have been significantly improved. On the basis of the HK$4.7 billion injection from CSN, CSV has also successfully introduced RMB 5 billion investment from Ping An Asset Management Co., Ltd., providing sufficient financial guarantee for future business development.
It is worth mentioning that when promoting the strategic investment in VNET, the Shandong New Energy team of Shandong Gao Holdings has jointly carried out the preliminary cooperation with the VNET team on the "source-grid-load-storage integration" project. According to reports, Shangao New Energy can provide a stable supply of green electricity, and has the basis for "integration" with VNET in the stock project, while VNET can provide stable power consumption, and the two sides can serve as a source-grid-load-storage integrated energy complex of "green energy supply (power generation side) + computing infrastructure (consumption side)".
It can be said that the series of measures of CSHL are highlighting the essence of the return of finance to entities in the new era, empowering industrial development, and realizing the "two-way rush" and virtuous cycle of finance and industry.
Behind the high increase in the share price of Seco Holdings: the popular track maintains the "long board effect" and the low valuation of individual stocks
CSTL, which has achieved remarkable results in transformation, is quite sought after in the secondary market. Wind data shows that in the past week, southbound funds have bought Seco Holdings for 4 consecutive days, with a cumulative net purchase of 4.571 million shares in the past 5 trading days and a total of 8.115 million shares in the past 30 trading days, accounting for 24.55% and 7.42% of the trading volume in the same period, respectively. At the same time, the share price of Shandong High Holdings has risen by more than 40% in the past five trading days, and hit a new high of HK$7.31 per share on April 29.
This is not unrelated to the industry in which CSTL operates. Computing power and new energy have always been popular tracks in recent years, and the popularity of AI in 2023 has ushered in a general rise in related sectors such as computing power and data that has lasted for nearly half a year.
Prior to March, CSTL, VNET and Ulanqab Municipal Government reached a strategic cooperation, and the three parties are jointly promoting a major demonstration project of deep integration of green power and intelligent computing power driven by DC, and comprehensively cooperate in the field of SPEAR energy technology innovation projects such as computing power center, source-grid-load-storage integration, green DC, virtual power plant, and new power system. The strategy of "Eastern Data and Western Computing" has been implemented in depth.
It is obvious that the firm layout of CSTL in the new energy and new infrastructure track has made it stand at the forefront of market hotspots and attracted a large amount of capital inflow. Compared with the current A-share listed companies in the industry, it is not difficult to see that CSHL has been at a low value for a long time, providing a large space for value revaluation. In the past two years, through strategic investment and industrial layout, CSHL has not only greatly improved its fundamentals, but also attracted more value investors, driving the growth of its stock price and trading volume.
Behind the record high stock price, it also means that the market has more positive expectations for the future development and profitability of CSA Holdings. In particular, the continuous investment in the field of new energy and computing power is expected to bring long-term and stable income to the company.
CSHL said that it will maintain the strategic intent of "consistent" and the strategic flexibility of "changing with the times", take the strategic stake in VNET as an opportunity to build a low-carbon, efficient and safe clean energy system, promote the integration of data centers, cloud computing, and big data in the new computing network system, and continue to deepen cooperation in the integration of "green power + computing power" The "CSN model" of integrated operation of "green power + computing power" will be deeply cultivated. While achieving their own strategic goals, emerging industries such as new infrastructure will promote the sustainable development of society and the common prosperity of partners, forming a complementary, embedded and mutually beneficial ecosystem of Shandong High Holdings.