Hua Fu Securities Co., Ltd. Ren Zhiqiang and Xu Xun recently conducted research on Haiguang Information and released the research report "Domestic CPU + DCU Leader, AI Calculation Power Localization Potential Irreversible". This report gives a buy rating to Haiguang Information, and the current stock price is 71.7 yuan.

Sea Light Information (688041)

Investment Points:

Domestic CPU and DCU leading enterprises, operating conditions continue to improve

Haiguang Information was established in 2014, mainly engaged in the research and development of high-end processors, accelerators and other computing chip products and systems. At present, the company in the general-purpose processor (CPU) and coprocessor (DCU) direction already has the sea light series, deep calculation series two mature product lines and continue to iterate upgrade. The company's operating conditions continued to improve, the company has turned a profit in 2021 net profit, 2018-2023 the company's revenue and home-to-home net profit continued to maintain the momentum of growth.

Leading CPU Performance, Shin Chuang Demand Expands Market Space

Sealand information digestion and absorption of AMD authorized technology, now has the ability to product independent iteration. By the end of 2023, the company according to different application scenarios have launched Haiguang 7000, Haiguang 5000, Haiguang 3000 three series of products, and in the product generation successfully iterated to Haiguang III. Haoguang CPU x86 architecture, high maturity of hardware and software environment, is the mainstream choice in the field of servers. With the promotion of the industrial policy of information technology application innovation, Haguang processor has emerged in the domestic processor market. With its excellent performance and ecological advantages, in the domestic server and workstation market, especially in key industries such as finance and telecommunications, Haguang CPU's collection orders accounted for a significant proportion, reflecting the company's leading position in the domestic substitution process of China's trust industry.

Haguang DCU continues to iterate, and the commercial application prospect in AI field is broad

Haguang Information DCU adopts the international mainstream GPGPU route and CUDA-like architecture, and can adapt to international mainstream software, thus serving big data, artificial intelligence and other fields. Haguang DCU products for the deep calculation series, at present, deep calculation No. 1, No. 2 have been commercially available, deep calculation No. 3 is under development. Among them, the performance of Deep Calculation No. 1 is expected to reach more than 40% of the NVIDIA A100, and Deep Calculation No. 2 will be officially released in the third quarter of 2023, with an expected performance increase of 100 percent over Deep Calculation No. 1. Haiguang DCU products have made significant progress in commercial applications, showing the application prospects under the background of AIGC development. The deep calculation series supports full-precision model training, fully adapts to large models such as Wenxin, and completes mutual certification with deep learning frameworks such as Baidu Feipaddle.

Earnings Forecasts and Investment Recommendations

the company for the domestic computing power chip leader, but also as a domestic CPU and DCU scarce target, in the product end and ecology have a strong competitive advantage. With the rise of the domestic trust market independent control wave, as well as AI large model-driven computing chip demand burst, the industry development opportunities are good, the company as a domestic computing leader is expected to continue to expand the share of domestic substitution. We expect the company to achieve operating income of 87.0/118.4/15.1 billion yuan in 24-26 years, corresponding to the current PS valuation of 19/14/11 times, net profit of 18.2/25.9/3.6 billion yuan, corresponding to the current PE valuation of 92/65/47 times. First coverage, give a "buy" rating.

Risk Alert

The risk of less than expected AI demand, the risk of less than expected research and development, the risk of high supplier concentration and difficulty in replacing some suppliers, and the risk of high customer concentration.

securities star data center calculates according to the research report data released in the past three years that the research team of yang zeyuan of citic securities has conducted in-depth research on the stock. the average forecast accuracy in the past three years is as high as 83.58. its forecast attributable net profit in 2024 is profit 1.604 billion, and the forecast PE converted according to current price is 103.91.

The latest profit forecast is as follows:

the stock has been rated by 22 institutions in the last 90 days, with 18 buying ratings and 4 overweight ratings; the average institutional target price in the past 90 days is 94.45.

the above content is compiled by the securities star according to the public information and generated by the algorithm (no 310104345710301240019 of the net letter calculation), which has nothing to do with the position of this site. if there is any problem with the data, please contact us. This article is a data compilation, does not constitute any investment advice for you, investment is risky, please be cautious in your decision-making.

View original 208K