A leading enterprise in intelligent manufacturing, globalization lays the foundation for growth. IFF is committed to becoming the world's leading intelligent manufacturing and industrial Internet solution service provider. With “intelligent manufacturing+industrial Internet, big data+robotics” as the core of the “2+2” driving strategy, it has developed a global production layout in 12 countries and regions in Asia, Europe and North America. Production shows cross-regional attributes, and core customers show cross-industry characteristics.
Welcome AI development opportunities and deeply bind major North American customers. This article will analyze and explain the company's cloud computing business from the following perspectives: 1) Company perspective, product innovation+major customer cooperation to build the company's α competitive advantage. 2) From a historical perspective, data centers present two major evolutionary characteristics: horizontal expansion of the development cycle and countercyclical increase in CAGR, helping accelerate the AI infrastructure construction process.
3) From a capital perspective, major cloud vendors are speeding up infrastructure investment and starting an era of global computing power investment. 4) From an industry perspective, demand side: model commercialization, generalized catalytic inference computing power demand is increasing; supply side: data center clustering and cloud-native service construction feed back innovation at the model layer and application layer to achieve collaborative promotion at the hardware and software layers, and the AI equipment OEM model is beneficial in the long term.
The industrial Internet continues to ferment, enabling enterprises to prosper for a long time. The policy has had remarkable driving effects, continuously catalyzing the penetration of the industrial Internet into thousands of industries and creating a beta advantage; the Lighthouse Factory led the industry out of the pilot dilemma and achieved intelligent transformation and upgrading, and AI enabled superposition and differentiated service strategies to promote the steady development of the company's business and strengthen the Fulian moat.
The communications market is under pressure in the short term, and telecom-side resources are skewed towards data networks. The capital expenditure of operators has now been structured, and the importance of computing power networks and scheduling has increased markedly, opening up market space for data interconnection equipment; the company has achieved mass production and delivery of 100G, 200G, 400G and other high-speed switches, and 800G switches have also entered the NPI stage, so there is great potential for the development of the high-speed switch business.
Investment advice
First coverage, giving a “buy” rating. The company's revenue for 24-26 is estimated to be 565.821 billion yuan, 663.688 billion yuan, and 717.946 billion yuan, respectively; net profit to mother is 27.419 billion yuan, 31.971 billion yuan, and 35.668 billion yuan, corresponding to EPS of 1.38 yuan, 1.61 yuan, and 1.80 yuan.
Risk warning
Competitive advantage maintains the risk of uncertainty; the risk of price fluctuations in upstream raw materials; the risk of changes in the international landscape and increased trade frictions.