event:

1. zhongbei communication announced on November 16 that it had signed a computing power service framework contract to provide Beijing zhongke xinyuan technology co., ltd. with a total of 1920PAI computing power technical services, providing a total of 128 sets of high-performance computing power integrated cabinets, with a single cabinet computing power of not less than 15P.

2. huina technology announced on November 14 that huina technology co., ltd. plans to simultaneously increase the computing service charges of the high-performance computing server embedded with Avida A100 chip entrusted to it by 100.

comments:

under the influence of foreign AI chip export ban, computing resources are tight. Under the influence of the export control regulations for AI chips issued by the U.S. government in October, the export of a series of Nvidia computing products to China has been restricted. In this context, there is a short-term gap in the resources of the computing power supply side, which has affected the price of the computing power supply link. China's listed company Huina Science and Technology announced that due to the substantial increase in the demand for computing power of high-performance computing servers embedded with Avida A100 chips, the price of related high-performance computing equipment has increased, and the computing power resources continue to be tight, resulting in the company's increased charging pricing for the affected computing power services; the unit price per P/year of the contract signed by China Bay Communications on November 16 is 180000 yuan, up 50% from the 120000 yuan per P/year of the computing service framework agreement disclosed in its announcement on September 7.

downstream applications continue to land, computing power infrastructure construction to get policy supply. In addition to OeanAI, an important foreign generative AI manufacturer, releasing a series of products with new functions at the first developer conference, OPPO has launched a AndesGPT with a maximum support of 100 billion parameters. Aliyun's 100 billion parameter large-scale model has 2.0 realized the landing. China Telecom has released a 100 billion parameter star semantic large-scale model. Large-scale models in many fields in China have landed one after another, thus creating a continuous demand for computing power infrastructure. The Ministry of Industry and Information Technology and other six departments issued the Action Plan for High-quality Development of Computing Infrastructure on October 9, which proposes that by 2025, the scale of computing power will exceed the target of 300 EFLOPS, and the construction of computing power is expected to advance steadily under the continuous growth of downstream demand and strong support from the policy environment.

The localization process needs to be accelerated, and relevant manufacturers are facing opportunities. High-end AI chip is an important device to build computing power supply equipment, the current computing power-related industry ecology is gradually improving, financial leasing and other business models appear. However, limited by changes in the external policy environment and the lack of domestic available alternative device capacity, the process of promoting the deployment of the computing industry chain has slowed down. The degree of independent control of key devices such as chips still needs to be improved, and the process of localization of computing facilities needs to be accelerated. Huawei continues to promote the strategic deployment of "Yipeng and Rising" computing power, its AI chip Huawei Rising 910B capability can be in some areas of the standard Nvida A100, computing power industry chain key links of the domestic alternative deployment is moving forward, related modules, accelerated chip manufacturers ushered in the opportunity to enter the industry chain.

investment strategy: affected by changes in the international policy environment, there have been short-term price fluctuations on the supply side of computing power. Under the background that the large models of downstream industries are constantly landing and the construction of computing power infrastructure is supported by policies, the process of domestic substitution in the key links of the computing power industry chain needs to be accelerated. Looking ahead to the market, the domestic computing power supply side will usher in a round of price improvement opportunities, computing power supply-related devices and equipment manufacturers are expected to be more deeply involved in the computing power industry chain under the trend of localization, it is recommended to focus on the follow-up development of domestic computing power industry. Related targets include Zhongbei Communications (603220.SH), Zhongyi Asahi (300308.SZ), Guangxun Technology (002281.SZ), China Telecom (601728.SH), Cambrian (688256.SH), etc.

Risk Warning: The domestic substitution process is less than expected, the external policy environment changes, downstream applications are less than expected, market competition risks, etc.