Recently, Runjian Co., Ltd. won the bid for the operation and maintenance project of a unit intelligent computing center in Inner Mongolia, the world's largest single intelligent computing center, to provide a full range of intelligent operation and maintenance services for the intelligent computing center.

Following the big manufacturers, large operator computing power operation and maintenance orders were added, and large-scale computing power service capabilities continued to be verified.

Runjian Co., Ltd.'s computing power management and maintenance service has been implemented in various supercomputing centers such as the National Supercomputing Center in Shenzhen and the China-ASEAN Artificial Intelligence Supercomputing Center. As an excellent A-level supplier of China Mobile, the company has established long-term in-depth cooperation with operators in traditional communication operation and maintenance. This bid for the world's largest single intelligent computing center is a reflection of the company's high-quality customer resources and close cooperation. The Inner Mongolia Data Center Industrial Park covers an area of more than 1,000 acres and provides an installed capacity of more than 200,000 standard racks. It has introduced more than 100 customers from the Party, government, military, financial and securities companies, and Internet enterprises. The total investment in the computing power construction part of the park's intelligent computing center exceeds 2 billion dollars, and the computing power can reach 6EFLOPS. It realizes collaboration between intelligent computing and total computing resources, creates a unified technical base, and establishes a unified operating system. The localization rate exceeds 80%. The company has set up an operation and maintenance team covering cloud computing, network security, electricity, HVAC, weak electricity, digital communication, etc., to build rapid response capabilities.

In November 2023, Wuxiang Cloud Valley, a holding subsidiary of Runjian Co., Ltd., signed a “Cooperation Agreement” with Alibaba Cloud on computing power services and digital cloud, which mainly includes two in-depth cooperation between intelligent computing cloud and digital economy innovation center. In February 2024, Runjian Co., Ltd. signed a cooperation agreement with Huawei Digital Energy Technology Co., Ltd. to jointly build an end-to-end solution for technological transformation. As the “Baidu Intelligent Cloud Strategic Partner of the Year”, the company deployed Baidu Big Model to the Wuxiang Cloud Valley Intelligent Computing Center in April 2024. Major Internet companies and operators are the main consumers of cloud computing in China. They have high requirements for technology and large-scale computing power cluster operation and maintenance capabilities. Runjian Co., Ltd. cooperates with operators and major manufacturers to fully verify technology and service capabilities. The computing power management and maintenance service network covers 29 provinces/municipalities, 200 prefectures and cities, and 1,200 districts and counties across the country.

The basic communication network operation and maintenance infrastructure is stable, and there is a high increase in the operation and maintenance of new energy sources. The company won the bid for China Mobile's comprehensive network maintenance service procurement project from 2023 to 2026. The winning provinces continued to rank first in number, share, and amount, breaking new breakthroughs in communication operation and maintenance services in key provinces such as Shanghai, Jiangxi, Hubei, Liaoning, and Zhejiang, and its market share increased steadily. The new energy business increased 61.71% over the same period in '23, and its share of revenue increased from 13.99% to 20.91%. Self-branded drones have provided inspection and multi-spectral and water washing auxiliary operation services for the South Network; the RunDo PV Pipeline Maintenance Platform V3.2.0 has been launched and has been connected to nearly 3GW of power plants. The number of power plants is nearly 2,000, and functions such as SVG management, configuration monitoring, and power generation warning have been added. RunDobidder virtual power plants have been launched in Shenzhen, Guangzhou, Fujian, Zhejiang and other provinces.

Relying on the “curve ruler” platform, rich data accumulation and scenarios promote the implementation of the AI+ industry. Runjian Co., Ltd. independently develops a “curved ruler” AI open platform to help customers quickly build various software and hardware industry solutions, and empower the existing three major business lines. The company has two major elements of AI model implementation: 1) Data: in the field of communication networks, the company accumulates more than 10 million communication management and maintenance data sets, and more than 200 communication management and maintenance quality inspection and security inspection scenarios; in the field of information networks, the company has more than 30 million government and enterprise industry segment scenario data sets; in the field of energy networks, it forms more than 10 million photovoltaic power plant power generation and environmental data sets, photovoltaic power plant low performance data sets, and electricity load characteristics data sets. 2) Scenario: Runjian Co., Ltd. built the first urban management command platform in the country to achieve four-level linkage between municipal district, county, and street offices; smart campus solutions have been implemented in more than 300 schools; more than 100 digital village solutions have been implemented; smart communities and park businesses continue to maintain ecological co-creation with the China Mobile Internet of Things, etc., and has implemented nearly 100 projects since 2023. Rich data accumulation and downstream scenarios promoted the implementation of the company's AI+ industry solutions. The company signed cooperation agreements with Baidu, Guangzhou Institute of Electronics of the Chinese Academy of Sciences, Dahua, etc., and relied on the “curve ruler” platform to promote the implementation of large models internally and externally.

Profit forecast and investment advice: The company's total revenue for 2024-2026 is expected to be RMB 106.41/129.00/15.465 billion, respectively, corresponding growth rates of 20.56%/21.23%/19.89%; net profit to mother is RMB 6.14/9.04/1.01 billion, up 40.13%/32.87% year on year. The corresponding EPS is 2.19/3.22/4.28 yuan, corresponding to PE 17/12/9. Maintain a “Recommended” rating.

Risk warning: risk of major customer concentration, risk of communication business development falling short of expectations, market competition and technology development risk.