Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [6]. Core Views - The company is transitioning from a smart city service provider to a computing power service provider, capitalizing on the AI infrastructure boom. It has already secured significant contracts in the computing power sector and is expected to see substantial growth in this area [6][49]. - The AI industry is rapidly developing, with major players like Alibaba increasing capital expenditures for cloud and AI hardware infrastructure. This trend is expected to drive demand for computing power services [6][31][49]. - The company has a strong capability in optimizing network configurations and computing power services, which is crucial for clients selecting computing power suppliers [6][35]. Summary by Sections 1. Company Overview - Founded in 1997, the company has evolved from providing smart city solutions to integrating computing power services, achieving a revenue of 771 million yuan in 2023, with a net profit of 42.2 million yuan [6][9]. - The company has begun to establish a presence in the computing power sector, contributing 15% to its total revenue in 2023 [6][19]. 2. AI Infrastructure Development - The report highlights the launch of advanced AI models and increased capital expenditures from major tech companies, indicating a significant shift towards AI infrastructure in China [6][25][31]. - The domestic AI computing power market is projected to grow significantly, with estimates of reaching 19 billion USD in 2024 and 25.9 billion USD in 2025 [6][32]. 3. Transition to Computing Power Services - The company has secured four major computing power contracts totaling 1.465 billion yuan, indicating strong demand for its services [6][46]. - The company is also expanding its operations internationally, with plans to establish a subsidiary in Hong Kong to explore opportunities in Southeast Asia [6][47]. 4. Financial Projections - The report forecasts net profits for the company to be -50 million yuan in 2024, 51 million yuan in 2025, and 292 million yuan in 2026, reflecting a significant turnaround as the computing power services gain traction [6][49]. - Revenue projections indicate a substantial increase, particularly in the computing power service segment, which is expected to grow by 331% in 2025 and 200% in 2026 [6][50].
宏景科技：算力服务新秀，乘AI基建之风-20250303