The Zhitong Finance App learned that Ping An Securities released a research report saying that recently, from national to local levels, there have been frequent support measures and programs for the computing power industry. On the one hand, it shows the importance of computing power resources in developing the digital economy. On the other hand, continuing policy increases will further accelerate the construction of China's computing power infrastructure, promote the development of related computing power industry chains, recommend Wave Information (000977.SZ), Zhongke Shuguang (603019.SH), Ziguang Co., Ltd. (000938.SZ), Haiguang Information (688041.SH), Longxin Zhongke (688047. SH), Changguang Huaxin (688048.SH), it is recommended to focus on Shenzhou Digital (000034.SZ), etc.

Incident: Recently, the National Development and Reform Commission, the National Data Administration, the Central Network Information Office, the Ministry of Industry and Information Technology, and the National Energy Administration jointly issued the “Implementation Opinions on Further Implementing the “East Digital and Western Computing” Project to Accelerate the Construction of a National Integrated Computing Power Network” (hereinafter referred to as the “Implementation Opinions”).

The view of peace is as follows:

The “Implementation Opinions” indicate that by the end of 2025, China's comprehensive computing power infrastructure system will need to be initially completed.

Specifically: 1) Various types of new computing power in national hub node regions account for more than 60% of the country's new computing power, and the usage rate of national hub node computing power resources significantly exceeds the national average; 2) 1ms latency urban computing power networks, 5ms latency regional computing power networks, and 20ms latency cross-national hub node computing power networks were initially implemented in the demonstration area; 3) A two-way collaboration mechanism for computing power and power was initially formed, and green electricity accounts for more than 80% of the new data center data center of the national hub node; 4) The ease of use of users using various types of computing power was significantly improved and the cost was significantly reduced. Largely Reduction; 5) The key core technologies of computing power networks have basically achieved safety and reliability, and a high-quality development pattern of computing power networks characterized by networking, inclusiveness, and greening has gradually formed.

Computing power network construction policies have been introduced frequently, and the country's attention has increased markedly.

Earlier in October, six departments including the Ministry of Industry and Information Technology jointly issued the “Action Plan for the High-Quality Development of Computing Power Infrastructure”. The action plan not only proposed specific quantitative goals on the four aspects of computing power, carrying capacity, storage, and application side, but also made key requirements from the six perspectives of computing power supply, carrying capacity, capacity improvement, application empowerment, green and low carbon, and safety and security, and clearly proposed four guarantee measures to help implement the plan. The entire action plan makes detailed arrangements from goals to guarantee measures, further demonstrating the importance the country attaches to computing power development. As relevant policies are released one after another, the domestic computing power industry will enter a stage of rapid development.

The scale of domestic computing power continues to expand, and hardware infrastructure is being deployed at an accelerated pace.

According to information disclosure in the “White Paper on China Computing Power Development Index” published by the Academy of Information and Communications Technology, the scale of domestic computing power expanded steadily in 2022, and the scale of infrastructure computing power reached 180 eFlops, ranking second in the world. In addition, the scale of data centers is also showing a rapid growth trend. By the end of 2022, the domestic data center rack scale had exceeded 6.5 million standard racks, with an average annual growth rate of over 30% in the past 5 years, an average inventory rate of 58%, and more than 20 million data center servers in use. In terms of the deployment of intelligent computing centers, as of June 2023, 25 artificial intelligence computing centers have been put into operation nationwide, and more than 20 artificial intelligence computing centers are under construction.

Risk warning: 1) Policy implementation falls short of expectations, affecting the future development of the computing power industry; 2) the progress of computing power infrastructure construction falls short of expectations; 3) Industry competition intensifies, affecting the operating performance of related enterprises.