[Investment Points]

① SASAC first mentioned "AI-enabled industry renewal", this industrial automation software leader ahead of the layout of AI + industry, is expected to take the lead in benefiting.

② company is the first echelon of domestic AI chips, domestic X86 CPU leader, industry trust is expected to open up the domestic CPU market space, DCU business has harvested Baidu, Ali and other large factory customers, domestic computing power demand is expected to usher in the second growth curve.

Open Source Securities again covers Baoxin Software, maintains the company's "buy" rating

on February 21, open source securities released a research report again covering baoxin software (600845.SH), maintaining a "buy" rating. Since the beginning of this year, Kaiyuan Securities has issued company-related research reports three times, and Changjiang Securities and Huatai Securities have also successively covered the stock and given a "buy" rating.

public information shows that the company started from automation and informatization and gradually entered IDC industry, while deepening the layout of industrial internet, AI big model, robot and AIDC. The company is a listed software enterprise actually controlled by China Baowu and controlled by Baosteel Co., Ltd., and the ultimate controller is the state-owned assets supervision and Administration Commission of the State Council.

in the secondary market, the company's share price has obviously recovered in the past year, hitting a new low in nearly a year on February 2. Recently, it has rebounded. At the close of trading on February 22, the company's share price rose 2.75 to close at 43.36 yuan/share.

(source: Nancai financial terminal)

① "AI + central enterprises" deployment accelerated, the company is expected to be the first to benefit

today, AI direction broke out again, and the concept of "AI + central enterprises" is hot.

on the news, on February 19, the state owned assets supervision and administration commission of the state Council held a special promotion meeting on "AI enabling industry renewal" for central enterprises artificial intelligence . The meeting stressed that central enterprises should be promoted to achieve better development and play a greater role in the field of artificial intelligence. It is necessary to carry out AI + special actions, strengthen demand traction, speed up the empowerment of key industries, build a batch of multi-modal high-quality data sets for industries, and build a large-scale model-enabled industrial ecology from infrastructure, algorithm tools, intelligent platforms to solutions.

huafu securities pointed out that central enterprises have the advantages of large demand scale, complete industrial supporting facilities and many application scenarios. the entry of central enterprises is conducive to accelerating the improvement of the basic base for the development of AI industry in China and promoting the formation of industrial demonstration projects to provide direction for the innovation of other enterprises.

Open Source Securities said As the state supports the development of the AI industry by central enterprises, the company is expected to benefit from the core as an industrial software leader + central enterprises. With the traditional process-oriented enterprises such as iron and steel metallurgy, petrochemical and chemical industry vigorously layout intelligent manufacturing, as well as the rise of domestic innovation, the company may usher in golden growth opportunities, long-term development potential.

(Source: Open Source Securities)

② industrial software started, domestic innovation market space is larger

In terms of automation, the company is a scarce domestic company that has launched large-scale PLC (programmable logic controller) automation industrial software products. open source securities pointed out that before the company launched large PLC products, the market share was monopolized by foreign enterprises, and most domestic enterprises were located in small and medium-sized PLC. "Technical barriers + customer barriers + capital barriers + product exclusivity barriers" and so on to build a large PLC higher industry barriers.

According to the organization, the company plans to develop a distributed full-process domestic SCADA software for the metallurgical industry in 2021 and form a pilot application. At present, the company takes the Taigang No.2 steelmaking intelligent control center project as an opportunity, has realized the process industry production control software SCADA self-research .

In recent years, the domestic PLC market has maintained a steady growth momentum. Open Source Securities pointed out that the company's large PLC is in the market share from 0 to 1 to increase the rapid development period, related business is expected to benefit from the progress of domestic innovation.

(Source: Open Source Securities)

information technology, the company backed by the largest domestic steel group Baosteel and Baowu platform, industrial software has a first-hand advantage. according to IDC data, the company's market share in the domestic manufacturing MES (manufacturing execution system) software industry from 2021 to 2022 is firmly in the top three in the market, ranks first in the market share of domestic enterprises , and is also the MES leader in the domestic steel industry.

(Source: Open Source Securities)

open source securities pointed out that MES, as a production information management system, has a relatively short development time. Compared with foreign countries, domestic MES software products still have a certain gap in technology depth and application promotion, and there is still a large space for domestic production in the future.

③ AI empowerment, AIDC, big model ready

in recent years, the development of AIGC has brought about a vigorous demand for computing power. the China institute of communications and communications predicts that the scale of global computing power will grow at a rate of more than 50% in the next five years, which is expected to drive the construction of intelligent computing centers.

according to open source securities, the company has invested heavily in AI big model + industrial interconnection network platform research and development in recent years:

the company has been focusing on independent research and development of industrial Internet platform Baolindeng xIn3Plat and AI mid-stage, xAI suite, etc. for many years, and actively promote the research and development of steel AI large model, laying the foundation for the development of intelligent manufacturing.

the company is the leader of IDC (internet data center) in the first-tier cities in China. at present, the supply and demand pattern of IDC continues to improve, while AI development is in the ascendant. IDC is expected to upgrade to AIDC , which is expected to bring profit + valuation to the company in the future.

Performance forecast

open source securities predicts that from 2023 to 2025, the company will realize a net profit of returning to its parent of 25.86/32.72/4.27 billion yuan, up 18.3/26.5/30.5 year-on-year, and PE will be 39.2/31.0/23.8 times.

(Source: Open Source Securities)

Open Source Securities also suggests risk factors such as lower-than-expected promotion and application of large PLC control systems, lower-than-expected development of industrial robots, and lower-than-expected development of IDC.

Soochow Securities covers Haiguang information for the first time, giving the company a "buy" rating

Recently, Soochow Securities released a research report covering Haiguang Information (688041.SH) for the first time, giving a "buy" rating.

Public information shows that the company is mainly engaged in research and development, design, and sales of high-end processors in computing and storage devices such as servers and workstations. The main products include Haiguang general-purpose processors (CPUs) and Haiguang coprocessors (DCUs). The company belongs to the type of state-owned enterprises, is the first echelon of domestic AI chips.

Nancai Financial Terminal showed that on February 22, Haiguang Information closed up 3.85 at 82.83 yuan/share. The company's share price has risen sharply recently, since February has risen nearly 25%.

(source: Nancai financial terminal)

① First echelon of domestic AI chips

haiguang information obtained AMD X86 architecture technology authorization in 2016, and on this basis, realized independent iteration and launched self-developed CPU and DCU products. Soochow Securities pointed out that the company is the domestic X86 CPU leader, belongs to the first echelon of domestic AI chips, is one of the few domestic CPU and DCU companies that open both the letter and commercial markets.

Thanks to strong products, the company's revenue and net profit increased significantly. From 2018 to 2022, Haiguang's revenue increased 106 times. 2023 results continued to grow steadily, according to the company's 2023 annual results forecast, full-year revenue is expected to grow 10.82-22.14 percent year-on-year, home-to-home net profit growth of 46.85-64.27 percent year-on-year.

② LineYexinchuang is expected to open up domestic CPU market space

According to IDC, X86 servers account for a high proportion of server shipments due to their most complete architecture ecology. China's X86 server shipments are expected to continue to grow steadily in the future. It is estimated that by 2025, China's X86 server chip shipments will reach 10.66 million.

(Source: Soochow Securities)

X86 CPU market started late in China, and domestic enterprises have less market share. However, with the arrival of the trend of domestic innovation in server bidding, in the future, soochow securities believes that with the increasing proportion of industry trust creation, it is expected that the party, government and central state-owned enterprises are expected to realize comprehensive domestic innovation by 2027. company is expected to open up domestic space through industry trust creation, and server demand will increase .

according to soochow securities statistics, in 2022, some central state-owned enterprises server bidding localization ratio reached more than 30%. In 2023, banks, operators and other central state-owned enterprises released pure domestic server tender. Among them, Haiguang Information and Huawei are the two major suppliers of industry trust servers .

③ AI technology changes, the company's DCU business meets opportunities

with the continuous change of AI technology, the market demand for AI chips and computing power has expanded beyond expectations. IDC data shows that China's artificial intelligence chip shipments are expected to reach 1.335 million in 2023, an increase of 22.5 percent year-on-year.

there is an urgent need for domestic innovation of AI chips. since last year, a number of policies have been issued to support domestic AI chip products. dongguan securities is optimistic about haiguang information as the first echelon of domestic AI chips, fully benefiting from the accelerated domestic innovation of AI chips, and DCU business has ushered in the second growth curve.

According to the organization, at present, the company's Haiguang DCU is based on the GPGPU architecture and is compatible with the general-purpose "CUDA-like" environment. In terms of performance, the FP64 performance of Haiguang DCU Deep Calculation 1 product can reach the A100 launched by Avida in 2020 and the MI100 level launched by AMD in 2020. The performance of the second generation product is improved by 100, and the third generation product is expected to be launched in 2024. In terms of commercial applications, the company's DCU products have been certified by Internet companies such as Baidu and Ali, and have launched joint solutions.

(Source: Soochow Securities)

Performance forecast

Dong Wu Securities expects the company's net profit to be 12.44/17.49/2.379 billion yuan from 2023 to 2025, up 54.77/40.64/36.00 percent year-on-year.

(Source: Soochow Securities)

Soochow Securities also suggested risk factors such as less than expected policy support, less than expected technology research and development, and less than expected AI development.

(The content of this article is from a licensed securities institution and does not constitute any investment advice or represent the views of the platform, so investors are requested to make independent judgments and decisions.)