Chaoxun Communications signed a large operating order. On December 25, 2023, Supercom Communications announced that Chaoxin Equipment, a wholly-owned subsidiary of the company, signed a “Sales Contract” with Jining Gaoxin Ninghua Big Data Co., Ltd., to provide customers with GPU module procurement and sales services. The contract amount including tax is approximately RMB 472 million, mainly providing Nvidia H800 NVLink GPU module sales services.
The industry's computing power base has taken shape, and computing power is expected to be “inclusive”. On December 20, at the National Integrated Computing Network National Hub Node (Gansu) Qingyang Data Center Cluster Green Inclusive Computing Power Action Promotion Conference, construction of the Suihong Qingyang Green Computing Power Platform with a total plan of 20,000 P and an early construction of 5,000 P began. After completion, Gansu's green, high-performance, and cost-effective computing power resources will be continuously exported to regions such as Beijing, Shanghai, and Shenzhen where the artificial intelligence industry is rapidly developing and computing power demand is strong, and it will become an inclusive resource that micro, small and medium-sized enterprises can use. Wuhan has taken the lead in building the China Mobile Intelligent Computing Center project. According to the Hubei Provincial Department of Economics and Information, Hubei Province will take the lead in creating a central hub for the national computing power network to build the country's leading computing power and big data center clusters.
In terms of industrial scale, we aim to reach 100 billion yuan this year, 120 billion yuan next year, and surpass 150 billion yuan by 2025, accounting for more than 10% of the country's total scale.
Lay out key computing power nodes to seize the new wave of intelligent computing. On October 27, Chaoxun Intelligent Computing (Lanzhou) Technology Co., Ltd., a wholly-owned subsidiary established by Chaoxun Communications in Lanzhou, was formally established. The main business covers intelligent computing power, computing power equipment, cloud computing, Internet data services, data processing and storage support services, and 5G communication technology services. Lanzhou is one of China's top eight computing power nodes. According to the top-level design of the Development and Reform Commission, the Gansu node should build a non-real-time computing power guarantee base for the whole country, be positioned to continuously improve the quality and utilization efficiency of computing power services, give full play to its resource advantages, consolidate basic guarantees such as networks, and actively undertake non-real-time computing power requirements such as offline analysis, storage and backup for back-office processing nationwide. We believe that the company has now fully grasped the direction of computing power and deployed separate computing power centers in the Beijing-Tianjin-Hebei and Gansu regions, which is expected to open up the entire offline training+online reasoning computing power industry chain.
Investment advice: Optimistic about the burgeoning demand for East Digital and Western computing power, the company is seizing the opportunity to further develop the communications and Internet of Things business, and transform into an IDC integrated service provider. We expect the company's net profit to be 0.64/ 122/181 million yuan in 2023-2025, respectively, and the PE multiples corresponding to the current market value are 89x/47x/32x. Maintain a “Recommended” rating.
Risk warning: The construction of the computing power cluster falls short of expectations, and downstream demand falls short of expectations.