Great Wall of China (000066): Attribution Attribution Eliminates Uncertainty PK System Firm Performer
Event: On June 24, 2019, Great Wall of China announced that its controlling shareholder, CEC, intends to hold Tianjin Feiteng 21 held by China Zhenhua Electronics.
46% of the equity was transferred to the company by agreement. Compared with the previous disclosure, the company ‘s proposed part of the Tianjin Feiteng equity transaction counterparty was expanded from the original Huada Semiconductor to Huada Semiconductor and China Zhenhua.13
54% to 35%.
Main points: 1.
All the shares of Feiteng held by CEC are placed under Great Wall, and the uncertainty will be announced soon. CEC intends to announce the internal allocation and division, which represents that Great Wall of China has actually re-established a part of the CEC domestic hardware platform.
As a representative of domestic CPUs, Feiteng is valued by investors. Its ARM architecture has the most competitive ecological environment in fact, and its next-generation products FT-2000 and FT-2000 + have superior performance, and continue to narrow the gap with foreign CPU giants.
However, CPU research and development needs to invest a lot of funds, Feiteng needs a good financing channel to support subsequent research and development.
Great Wall of China, as the listing platform that has the closest business relationship with the domestic CPU Feiteng. After all the CEC Feiteng shares are transferred to Great Wall, Great Wall will become a substitute company for the Chinese-made CPU of the listed company, and will be the core asset of the post-war domesticization trend of Sino-US trade.
2. Imitate Supermicro’s focus on the Feiteng motherboard business and serve the PK system. The PK system is CEC’s long-term commitment to solving the security of domestic IT infrastructure and promoting its software and hardware security ecosystem. However, the ecology cannot be limited to Feiteng and Kirin. How to improve on the hardware sideFeiteng’s share is a major issue for CEC.
With reference to the development history of foreign IT hardware, SuperMicro will launch a new CPU-based basic board as soon as Intel launches a new CPU, helping OEMs to quickly launch the whole machine, so that consumers can quickly enjoy Intel’s first-time technology.The convenience brought by the progress has realized the revenue growth of 5 times in 6 years, becoming an IT equipment company with accelerated growth in that year.
Currently based on Feiteng’s servers and PCs, Great Wall of China is immediately launched.
Years of OEM business experience 杭州夜网论坛 and senior motherboard technology team have created the powerful board design capabilities of Great Wall of China.
It is expected that in the future large-scale promotion of the domestically produced CPU industry, the chips, BIOS and manufacturing capabilities of Great Wall of China will work together to play a similar role as Intel’s in promoting Intel. In cooperation with other OEMs, the host and server equipped with Feiteng CPU will be quickly pushed toParty, government and army markets.
3. Feiteng helps domestic cloud computing to improve security. Cloud is the current IT development trend. Many domestic cloud computing vendors are fiercely competing with international cloud computing giants. However, because the IT hardware that carries the cloud is basically monopolized by American companies, it is extremelyInsecurity.
However, because the core of cloud technology is to virtualize and pool hardware, it does not have single CPU performance, and related domestic server CPU vendors have core advantages in security.
Therefore, domestic cloud computing vendors have started to use domestic CPU-based cloud computing platforms. For example, at the second Digital China Construction Summit, Tencent released the Tencent Cloud TStack based on Feiteng, and Alibaba Cloud released Alibaba’s proprietary Yunan based on the Feiteng hardware platform.The agile standard cloud computing platform, based on the Alibaba Cloud platform built by China Electronics Feiteng 1500A and 2000+, has been practically deployed and applied in some provinces and cities across the country.
Investment suggestion: The proposed equity transfer re-establishes the position of China Great Wall’s domestic CPU leader, and also resets the position of the fixed performer of the CEC “PK” system.
It is expected that the company’s net profit attributable to its parent in 2019-2021 will be 11 respectively.
8.2 billion, 12.
1.5 billion and 13.
70 billion, EPS is 0.
40 yuan, 0.
41 yuan and 0.
47 yuan, given a “strong recommendation” rating.
Risk warning: Feiteng business promotion fails to meet expectations, Feiteng chip equity transfer progress is lower than expected.