Shulou(Shulou.com)11/24 Report--

On September 15, the 2023 World Computing Conference was held in Changsha to discuss hot topics such as data elements, data governance, data security, digital infrastructure and so on. It is worth mentioning that after the previous 2023 China Computing Conference, arithmetic concept stocks once showed a strong pull, a number of stocks into the capital "darling".

Industry insiders believe that the capital market increasingly recognizes the value of computing power as an important fulcrum for promoting the transformation and upgrading of traditional industries and the growth of emerging industries. In the computing power industry chain, Lenovo Group relies on the new IT technology framework of "end-edge-cloud-network-intelligence", with the value proposition of "Puhui" arithmetic power, gives full play to the advantage of computing power, and is expected to continue to benefit from the high economic cycle of the computing industry chain.

Lenovo Group's arithmetic advantage is recognized by head brokers.

Zhang Yunming, vice minister of the Ministry of Industry and Information Technology, said that with the full opening of the digital economy era, computing power, like hydraulic power in the era of agricultural civilization and electricity in the era of industrial civilization, has become a new key productive force. After years of development, China's computing industry has begun to take shape, and will maintain rapid development and continue to change to the direction of intelligence.

According to the data of the Ministry of Industry and Information Technology, by the end of June 2023, the total size of the racks of data centers in use in the country exceeded 7.6 million standard racks, and the total computing power reached 197 trillion floating-point operations per second, ranking second in the world. In addition, according to the "China Comprehensive Computational Power Index (2023)" white paper released by the China Academy of Information and Communications, China's computing industry has grown at an average annual rate of nearly 30% in the past five years, of which artificial intelligence accounts for more than 25% of the whole computing power structure.

Behind the large-scale computing infrastructure, it indicates a broad space for industrial development. In the capital market, the industrial chain of computing power has become one of the hottest waves in the second round of "AI+". Many brokerage institutions also regard computing power as the current research focus, and recognize the dominant position of Lenovo Group in the industrial chain of computing power.

According to the "Puhui Computing era" report jointly released by KPMG and Lenovo, the computing industry chain includes upstream basic hardware, such as chips, servers, switches, as well as basic software such as databases and operating systems, mid-stream data centers, cloud computing services, network operation services and IT outsourcing, system integration services, etc. As well as downstream Internet, manufacturing, finance and other specific application scenarios.

Minsheng Securities said in the research report that the world is entering a new era of model acceleration, the arithmetic demand index is expected to be steeper, and recognize that the future computing power will have two dimensions of "universal" and "wisdom". Guohai Securities said in the research report that the global popularity of ChatGPT continues to rise, and the demand for numeracy in the mainstream big language models is rising sharply. Under the current mainstream large language model, the demand for servers is increasing, while Lenovo's servers have obvious advantages from the supply chain to the cost-revenue side.

Societe Generale Securities is optimistic about the server business growth brought about by Lenovo's AI in the second half of the year, using DCF estimates that the target price is HK $10.90, maintaining the "overweight" rating, while Huatai Securities believes that cloud computing vendors'AI server demand is still strong, and there may be a premium, leading to a significant improvement in AI server profitability. Taking into account the end of the PC inventory adjustment and the extensive layout of Lenovo's AI servers, the "buy" rating is maintained.

Everbright Securities said that as the rising demand for AI PC and AI servers under the wave of artificial intelligence is expected to open up medium-and long-term income space, it believes that Lenovo has room to upgrade its valuation and maintain its "buy" rating. In addition, open source securities and Pacific Securities also give Lenovo a "buy" rating.

In addition, the international rating agency S & P released a report to upgrade Lenovo's long-term issuer credit rating and unsecured note rating to "BBB", looking for stability.

The S & P upgrade is a recognition of Lenovo's solid market position, firmly promoted intelligent transformation strategy and layout, as well as a clear and sustainable growth strategy, and also confirms once again Lenovo's rigorous financial management and sound business development.

Lenovo Group rammed the computing power base to enable the transformation of the industry

The unanimous recognition of a number of securities firms has increasingly highlighted the dominant position of Lenovo in the computing industry chain.

Lenovo Group has been rooted in the technology industry for many years, and its computing power layout has covered the upper and lower reaches of the industrial chain. It is the world's largest provider of computing infrastructure, the world's highest share of TOP500 high-performance computers, the world's third largest server provider, and the fifth largest storage equipment manufacturer. Its computing services cover most of the leading digital enterprises, and it is a veritable "core player of computing power".

For example, in the field of edge computing, Lenovo Group creates industry-leading edge technology advantages from three levels: edge computing hardware, edge computing platform, and edge application, helping to promote intelligent scene innovation in various industries. In the field of high-performance computing, it has a complete high-performance computing product ecology, which can provide server product portfolio adapted to multiple chips, intelligent computing scheduling, and the world's first green energy-saving 45 °warm water cooling technology. In the field of hybrid cloud, the hybrid cloud brand Lenovo xCloud is launched, which focuses on 4 product families of cloud native, intelligent operation and maintenance, private cloud and multi-cloud management, as well as 9 general solutions, covering all customer scenarios of "building cloud, going up cloud, using cloud and managing cloud".

The forward-looking layout in the computing industry chain has not only laid the foundation for the transformation of Lenovo itself, but also brought energy for the development of downstream industries. Relying on Lenovo Group's high-performance computing integration solution, Geely Automobile Group has created an intelligent simulation platform for Geely Star Smart Computing Center. The platform adopts Lenovo xCloud Lenovo hybrid cloud scheme, which can complete 12000 + virtual security collisions per vehicle, greatly reduce the full-cycle use cost, and build a diversified software ecology, so that the high-performance computing power is more flexible for practical business applications. Lenovo ThinkSystem SD650 V3 server with the latest warm water cooling technology makes the PUE of the entire data center reach 1.1062.

It should be noted that while the computing industry chain is booming, it is also facing the "arithmetic anxiety" that the supply of computing power can not match the demand. In this regard, universal computing power that can be used at will and meet multiple needs, as well as intelligent computing power that can land in multiple scenarios, has become one of the directions for the future exploration of the industry, that is, "Puhui" computing power is expected to become the future development direction. Lenovo Group is the practitioner in this direction, and established "Puhui" as the strategic direction of its future computing power development.

In the era of Industrial 4.0, the transformation of various industries is accelerated, which puts forward higher requirements for the computing power, which is the core productivity of the digital economy. Lenovo Group, as a practitioner and enabler of digitization and intelligence in China, under the support of the new IT technology architecture, will fully invigorate data assets with "Puhui" computing power, release data dividends, accelerate the reform of the computing industry, and help the development of China's digital economy.

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