Jinghong series of high-performance intelligent computing modules and complete machine products for application fields such as AI training, AI reasoning, and scientific computing have been successfully developed and will be promoted to the market as soon as possible. The Jinghong series is a high-performance intelligent computing module and complete machine product for AI training, AI inference, scientific computing and other application fields. It supports mixed precision computation such as INT8, FP16, FP32, FP64, etc., supports new multi-card interconnection technology to expand computing power, can support current mainstream computing ecosystems, deep learning frameworks and algorithm model libraries, and greatly shorten the user adaptation verification cycle. The new products launched by the company can enrich the company's high-performance intelligent computing product line for the computing field, broaden the company's market business in application fields such as AI reasoning, AI training and scientific computing, consolidate the company's market competitiveness and market share in related fields, and promote the implementation of the company's long-term development strategy.
A fixed increase plan was announced to raise 3,974 billion yuan for research and development of high-performance general-purpose GPU chips.
In June 2023, the company announced a fixed increase plan to raise no more than 3,974 billion yuan in total capital for distribution to specific targets. It plans to raise 3,029 billion yuan for high-performance general-purpose GPU chip R&D and industrialization projects and 945 million yuan for general-purpose GPU advanced architecture R&D center construction projects, aiming at the application direction of GPUs in the field of artificial intelligence, building a domestic GPU application ecosystem, and gradually narrowing the development gap with leading foreign companies.
Optimistic about the company's card space and scarcity in the domestic GPU field, it is expected to accelerate the iteration of domestic computing power chip products and fully benefit from the big wave of AI. Recently, overseas AI has made significant progress in both investment and application fields. OpenAI Sora was released, which can generate high quality videos of up to 1 minute; Google Gemini 1.5 was released, which can support up to 10 million tokens and ultra-long contexts; Sam Altman is raising funds to support the ambition of “self-made AI chips”; Nvidia released Chat With RTX, a large model for local deployment, etc. We are optimistic about Jingjiawei's card space and scarcity in the domestic GPU field. Under the AI wave, the government, central state-owned enterprises, and special industries are expected to have strong demand for large-scale model training and reasoning. The company will raise 4 billion dollars in capital, which is expected to accelerate the iteration of domestic computing power chip products and fully benefit from the AI wave.
Profit forecast: It is predicted that in 2023-2025, the company will achieve net profit of 58 million yuan, 407 million yuan, and 614 million yuan. The corresponding EPS (latest dilution) is 0.13, 0.89, and 1.34 yuan/share, respectively, giving it a “buy” rating.
Risk warning: Xinchuang's bidding was delayed; competition intensified; major power games; profit forecasts fell short of expectations.