Key takeaways:
Marginal changes in the driving force of liquid-cooled flooringThe increase in the volume of AI servers has driven liquid cooling and heat dissipation to become a rigid demand. Liquid cooling technology has been developed for a long time, but the main driving force was the policy drive related to PUE value, and air cooling still occupies a dominant position in practical applications, which is fundamentally because air cooling can still meet most of the heat dissipation needs; With the advent of the era of computing power, the driving force for the increase of GPU servers and the landing of liquid cooling has undergone fundamental changesWe believe that 2024 is the first period for the accelerated development of domestic computing power, and it is also the first year of liquid cooling and heat dissipation: the direct "fuse": the power consumption of AI servers is greatly increased compared with traditional servers. In the AI era after the rise of large models, heterogeneous architectures under parallel computing networks have become the mainstream, and AI servers not only use traditional CPU chips, but also add a large number of high-power GPU chips, and the power of the whole machine has increased significantly, from hundreds of watts of CPU servers to several kilowatts of GPU heterogeneous servers, and the thermal power consumption has increased by more than dozens of times.
Root cause: The upper limit of air cooling cannot meet the heat dissipation requirements of AI. The upper limit of a single air-cooled refrigeration cabinet is usually about 15 kW, and a single cabinet of liquid-cooled data centers can support more than 30 kW of heat dissipation capacity. Taking H100 as an example, assuming that 8 cards are fully configured, the power consumption of a single H100 server will reach 5At 6 kW (regardless of CPU, storage, and additional heat dissipation of the whole machine), the air-cooled cooling threshold is limited, which has become a pain point in practical operation, and it is impossible to dissipate heat from AI server cabinets, and liquid cooling has become a "must-choose".
Auxiliary power: the inflection point of cold plate liquid cooling is coming. However, with the acceleration of AIDC construction, the penetration rate of high-power cabinets has increased significantly, and the power consumption far exceeds that of traditional cabinets. In China, chip factories, server factories, and operators have worked together to build AIDC and actively deploy liquid cooling, and the heat dissipation market space is huge.
Key takeaways:
Biden restricts the cross-border transfer of personal data to China, and the issue of "sovereignty" of artificial intelligence has attracted renewed attention, and it is imperative to develop the data side. On February 28, 2024, Biden** issued an executive order under the International Emergency Economic Powers Act (IEEPA) to protect Americans' sensitive personal data from being used by "countries of concern," including the transfer of U.S. citizens' personal data to countries such as China (including Hong Kong and Macau), Russia, Iran, North Korea, Cuba, and Venezuela. The restricted data primarily includes private and sensitive information of U.S. citizens, primarily genomic data, biometric data, personal health data, geolocation data, financial data, and certain types of personally identifiable information. We think,Biden's move is a continuation of the previous ** restrictions and an insinuation in the data field of the three elements of artificial intelligence, and cross-border data security supervision is expected to increase.
European Union:The Artificial Intelligence Act, the world's first comprehensive law on artificial intelligence, is about to be implemented. If approved, the rules will be implemented in phases. Its main highlights include classifying AI systems according to their risk level, ranging from minimal to unacceptable, and enforcing regulation based on which category AI systems fall into, with a particular emphasis on AI privacy and security. United States:The Executive Order focuses on security and privacy protection, further restricts cross-border data transfers, and encourages technological development and innovation.
China:Focusing on guiding the development of technology, adopting a strategy of encouraging development and paying equal attention to supervision, various localities and industry departments have successively improved the AI regulatory system. With the development of AGI, the urgency of domestic legislation has become increasingly prominent. In June 2023, the Artificial Intelligence Act was announced on the legislative agenda. On July 13, 2023, the Cyberspace Administration of China (CAC), together with six ministries and commissions, jointly issued the Interim Measures for the Administration of Generative AI Services (hereinafter referred to as the "Interim Measures"), and announced that the Measures will come into force on August 15, 2023. The Interim Measures focus on encouraging innovation and technological development, and shift the attitude of strong supervision and crackdown to one that balances development and compliance. We conclude that there are six major areas of AI legal risks, including: 1. AI sovereignty; 2. Data and algorithms (including "data privacy and protection", "algorithmic bias and discrimination", "cross-border data circulation", etc.); 3. Intellectual property rights; 4. Labor rights and interests; 5. Code of Ethics; 6. Competition and monopoly, the laws of various countries are expected to mainly focus on these six areas.
Key takeaways:
At the beginning of March,BYD and many other car companies have officially announced price cuts or limited-time discounts, and industry competition continues to intensifyLooking upstream, the upstream chain is facing the pressure of war transmission, profitability is facing challenges, and downstream, terminal demand is expected to be effectively released under the stimulation of the industry, which is good for the growth of industry sales. Recently, the first meeting of the financial and economic committee proposed to promote the renewal of new large-scale equipment and encourage the trade-in of traditional consumer goods such as automobiles and home appliances, and the automobile industry is expected to usher in a new round of consumption stimulus policies, and the growth of the automobile market is expected to be further strengthened.
In terms of investment opportunities,It is recommended to pay attention to the opportunities brought by the marginal changes in the intelligent driving sector represented by Xiaomi and Huawei's industrial chain, the new opportunities for going overseas represented by the Chery industrial chain, and the opportunities brought by the promotion of the ideal new car cycle to the industrial chain. In addition, it is recommended to pay attention to the opportunities in the natural gas heavy truck sector brought about by the continuous decline in gas prices and the renewal demand opportunities in the heavy truck industry brought about by the "trade-in" emphasized in the meeting of the ** Financial and Economic Committee.
Key takeaways:
Events:The company's operating income in 2023 will reach 222.5 billion yuan, an increase of 11 over the previous year06%；Achieved net profit attributable to the parent company of 52.5 billion yuan, a year-on-year increase of 3126%；Realize the net profit of 48.8 billion yuan, an increase of 26 percent year-on-year12%。
Revenue:Outstanding performance, revenue and net profit achieved double growth: the network layer business achieved revenue of 138.1 billion yuan, an increase of 10 percent year-on-year96%, gross margin 4348%, an increase of 5 year-on-year97pct。Cost side:The three fees continued to be controllable, and the net profit increased steadily. On the expense side, the overall expense ratio in 2023 will be 1563%, an increase of 1 year-on-year28pct。The sales management finance R&D expense ratio is 473%/1.77%/-1.09%/10.22%, year-on-year change +005/+0.01/+0.91/+0.31 pct。
Seek progress while maintaining stability, and carry out the action of "improving quality and efficiency and emphasizing returns".Looking at the cash flow statement, cash flow from operating activities increased significantly to 41.7 billion yuan, an increase of 62 percent year-on-year21%。The cash dividend per share in 2023 increased by 30% year-on-year, and a total cash dividend is expected to be 2100 million yuan. In addition, the company released the first phase of the employee stock ownership plan, with 4 million shares subscribed, demonstrating confidence. Three major business layouts to serve the national strategy in 2023The company is firmly in the head enterprise of the power Internet of Things, and the State Grid and the Southern Power Grid Headquarters won the bid for 44.8 billion yuan, ranking in the forefront; Concentrate R&D efforts and comprehensively apply technologies such as big data analysis, cloud computing, edge computing and Internet of Things communication to serve smart cities; Continue to expand overseas territory and write a new chapter in the internationalization strategy.
Key takeaways:
23Q4 revenue was in line with expectations, and results were slightly below expectations. In 23 years, the company achieved revenue of 68$5.6 billion, +58% (endogenous +11.)1%), achieving sales of 92770,000 kiloliters, +48% to achieve EBITDA 20$2.3 billion, +47% (endogenous +10.)8%), and the net profit attributable to the parent company was 8$5.2 billion, -67%。In the fourth quarter alone, the company's revenue was 12$9.3 billion, +110% (endogenous +8.)9%), with sales volume of 15660,000 kiloliters, +06% (endogenous -2.)1%），ebitda 2.$6.6 billion, +32.2 year-on-year9% (endogenous +31.)3%), net profit attributable to the parent company -0US$2.3 billion, mainly due to tax impacts.
In the fourth quarter, the volume and price of China fell and increased, and the annual profitability of the western region increased by 31bps. 23Q4 Asia Pacific West revenue +92%, sales ASP -1 year-on-year9%/+11.3%；EBITDA +35 YoY7%, with an annual EBITDA margin of 303%, +31bps YoY. The volume and price of China were -3 year-on-year1%/+14.7% (base figure -7 for the same period.)0%/-8.6%), benefiting from the gradual recovery of channels such as night clubs, the smooth upgrading of product structure, and the company's revenue from Budweiser and ultra-high-end products achieved double-digit growth. However, the recovery of sales is still under pressure, mainly due to the increase in channel inventory after the high base of the domestic Q3 peak season, but the lack of consumer demand, and the output of the Q4 industry is -9 year-on-year6%。In 23Q4, the company's revenue in the Indian market maintained double-digit growth, outperforming the industry, of which 2 3 shares came from high-end and ultra-high-end products.
The market share in South Korea contracted, and the profitability of the East Asia Pacific region fell by 32pct。23Q4 Asia Pacific East revenue +77%, sales ASP -3 year-on-year4%/+11.4%；EBITDA +23 YoY2%, with an annual EBITDA margin of 260%, -3 year-on-year2pct。Due to the launch of new products by competitors, the return of Japanese brands to the Korean market, and the impact of a high base in the same period (22Q4 volume and price increased by double high orders year-on-year), sales in South Korea declined by a mid-single digit in the fourth quarter and have not stopped falling since the second quarter. Overall revenue growth is in the low single digits, and the company estimates that its market share in South Korea will decrease by approximately 150bps. Looking forward to 24 years, the company expects that the profit margin is expected to gradually improve with the help of price increase transmission, operational efficiency improvement and high-end promotion in the early stage.
Key takeaways:
The company achieved sales of 1110,000 units, +33%, affected by the Spring Festival, -478%。From January to February, the company's cumulative sales volume was 3250,000 units, +55 y/y2%。The year-on-year growth rate of China's star high-end series was about 8%, and the proportion of high-end models of the Geely brand was outstanding; New energy increased by nearly 48% year-on-year, and the growth rate was stable. In 2024, all brands under the company will make efforts to transform into new energy, Galaxy will usher in a period of large-scale volume, and profitability is expected to usher in an inflection point.