Innovation and breakout of chip road

Whether a CPU chip can be recognized by the market needs to break through the three -priority level: whether the performance can meet the requirements, whether there is a suitable ecological environment and whether the chip can produce energy.

By reinventing in the research and development, the improvement of chip performance is only a matter of time. Through the Fabless mode, the production and sealing test to more professional manufacturers are a savvy choice. The ecologicalization mainly depends on whether the direction of the development of the research and development is correct. At present The mainstream structure of my country's servers is X86, and its market share is as high as 88%-90%. It can ensure a suitable ecological environment around X86.

但满足上述一个条件的公司较多，而三个能同时满足顺利将自家芯片打入市场的公司则是凤毛麟角，而本次的主角：海光信息，则是为数不多的同时拥有深厚研发实力与Companies with broad development prospects.

Haiguang Information 2019-2021 three-year revenue was 379 million, 1.022 billion, and 2.310 billion. The revenue was almost over the years, and the net profit was -137 million, -082 million, and 437 million. The successful achievement was to make a profit, because the company developed Haiguang I and Haiguang No. 2 developed by the company has successfully realized commercialization.

What did Haiguang do the right thing to make it enter the performance harvest so quickly?

01

Get rich sea light

The strength of Haiguang information is most intuitive that its products have begun to achieve synchronous growth of income and profits.

Haiguang Information mainly sells chips CPU and DCU. The successful realization of commercial chips includes Haiguang No. 1 and No. 2 in the laboratory. Deeping No. 2 is stepping up research and development.

Haiguang Information 2019-2021 three-year revenue was 379 million, 1.022 billion, and 2.31 billion. The revenue doubled years, while the net profit was -137 million, -082 billion, and 437 million. Realized.

This is not a sudden lighting, but the long -term development of Haiguang and unique sales models.

The research and development expenses of Haiguang 2019-2021 were 175 million, 546 million, and 745 million, respectively, and 1.466 billion in three years. The company's three-year profit was not even 100 billion yuan. Heavy.

This is only a expensive R & D investment. Due to the particularity of integrated circuits, the capitalization rate of early R & D expenditure in the early days of R & D and development is only the corner of the iceberg. , 558 million, 840 million, the proportion of 79.71%, 51.18%, and 53.02%, respectively.

If the cost of capitalization is included in the statistical scope, Haiguang Information will invest about 3.5 billion in the development and development.

Around 3.5 billion R & D expenses make Haiguang products very competitive. As of the end of 2021, there are 136 patents in the Haiguang hand, 154 software copyrights, 81 integrated circuit design exclusive rights, and each generation of products Compared to the price increases from the previous generation, the gross profit margin space is higher.

Beginning in 2020, when Haiguang No. 2 began to become the pillar of the company, the company's gross profit margin continued to rise. In 2019, it was 37.31%, and in 2020 exceeded 50%, and the innovation high in 2021 reached 55.95%. The market verification is commercialized, the scale effect will be quickly displayed, and the performance reversal will be extremely fast.

As a design company, the problem is that production is not completely in their hands. At the same time, sales are limited by production capacity. According to the prospectus, the 7100 series has exceeded 100%in 2021, and there is a situation of supply and insurmountable.

However, Haiguang Information has developed a set of production models: "production capacity planning, semi -finished product stocking."

To put it simply, the company will formulate a production plan 6 months in advance and update customer prediction needs every two weeks to prepare in time, and produce an appropriate amount of nude (semi -finished products) in advance. According to the prospectus, the three -year semi -finished product inventory of Haiguang Information is 1 respectively 1 respectively. 100 million, 31 million, 146 million, fully meet the market needs.

And the reason why Haiguang can quickly enter the performance harvest period is an important factor: Hai Guang's research and development has taken the right path.

02

Decisive factor for CPU development: ecological environment

Whether the CPU can develop well is the most important prerequisite: whether there is a CPU ecological environment? In short, whether there is a survival soil.

All programs of the computer need to be converted into "instructions" to run on the CPU, and this requires a set of instruction sets. The instruction set is divided into complicated instruction set representatives X86, and the simple instruction set representatives are ARM, MIPS, and Alpha.

Although it looks very complicated, Microsoft and Dore are absolute leaders. Its representative works are the industrial ecological advantages formed under the X86 architecture. On the sales of sales of X86 processors, the server of the X86 processor accounts for about 91% of all servers. The proportion of sales volume exceeds 97%.

Therefore, based on the X86 compatibility, it is the only way to go globally in the chip industry. The compatibility of the X86 architecture is the most correct choice.

As early as 2016, Haiguang Information and AMD signed the "Technical License Agreement". Haiguang obtained the X86 CPU design core technology by permanent IP kernel authorization, and it is the only processor in China based on the X86 architecture. According to the prospectus, the 3000 series, 5000 series, and 7000 series of Haiguang are compatible with the X86 instruction set, and the revenue generated by these three products accounts for about 90%. X86's ecosystem.

Therefore, once it is promoted, the development of the market is extremely fast and distributed widely. Since 2018, not only server manufacturers can carry sea light, industrial and commercial banks in the financial sector, two barrels of energy in energy chemical industry, and data centers of telecommunications operators have all data centers for telecommunications operators. It can be used, and the potential market size is quite large.

As of December 31, 2021, the order on Haiguang Information was 2.107 billion yuan. In the first half of 2022, revenue was basically the same as the annual revenue of the 21st year.

And another fist product DCU "Deep One" cannot be underestimated, and the DCU is not a solitary fighting but a successful experience in the CPU field. The DCU can be compatible with the "CUDA" environment. The A100 and AMD MI100, which is not weaker than Nvidia. This performance allows "Deep One" to enter the field of big data processing, artificial intelligence, and commercial computing.

Throughout the CPU, after entering the ecology, the competition between the CPU is performance competition. AMD and Intel each press conference is a great competition for performance muscles, and Haiguang itself has been cultivated in CPU for many years and the latest research and development results began to catch up with the industry. The pace of the leader will continue to invest in research and development, and as its R & D strength further enhances its market share and development potential, it will be improved.

03

Growing together in emerging markets is the right way

The success of domestic chip companies is inseparable from the needs of chip urged by emerging industries.

The consumer electronics industries of computers and mobile phones have entered a stage of perfect or even stagnation. Chip in this field has almost no room for growth and development. It is extremely difficult to continue to catch up with international giants in this field.

However, the development of emerging markets has given the domestic chip industry a chance to catch up.

随着互联网的发展，数据量变得前所未有的巨大， 结果就是根据应用材料数据来看，2020年机器数据量为6.6Z，Z可以理解为一个你无法想象的庞大记数单位，而且到了2025年， This amount of data will increase to 157Z, which is currently about 24 times, which has attracted the attention of the central government.

In March 2022, a meeting of the National People's Congress passed a plan report at the meeting. The report clearly stated that the implementation of the "Eastern Digital and West Calculation" project at the national level, and the dense computing power demand in the east was guided to the west in an orderly manner to the west. , Cross -domain flowing data has spawned a emerging market around data.

The core of the East Calculation is to establish a number of data centers in the western region. The most important device in the infrastructure center of the data center is the server, the switch, etc. A server consists of several components, including memory, GPU, hard disk, and also The main product of Haiguang: CPU. Therefore, the construction of the data center infrastructure drives the industrial chain, and the upper reaches of the industrial chain is a type of server component manufacturer such as Haiguang.

According to data from IDC, the domestic relatively mainstream X86 server shipments show an upward trend every year. In 2020, the innovation high reached 3.439 million units, which is completely different from the consumer electronics equipment that enters the downward trend. There is sufficient market space.

Another type of main product of Haiguang is a chip based on the GPGPU architecture. It is mainly used in two aspects. One is commercial computing and big data processing, and the other is artificial intelligence.

Overseas Nvidia's business is four aspects: games, data centers, professional visualization and cars, and one of the fastest -growing businesses is the data center business.

Nvidia Data Center revenue was only $ 340 million in 2015, and in 2020, it increased to $ 10.613 billion in 2020. From 2015 to 2021, the average annual compound annual growth rate of NVIDIA data center business was 63.49%, and its growth rate far exceeded the revenue growth rate of other sectors of NVIDIA. The rapid growth of NVIDIA data center business revenue reflected the downstream data center market. GPGPU's strong demand.

A typical application of downstream is the super data center. Super data centers often put forward higher requirements for computing power. DCU just plays its role. Increased downstream super data number can naturally drive the market size of DCU. According to Cisco forecast, by 2021 At the end of the year, the super data center could reach 628, and the proportion of all data centers exceeded 50%for the first time.

Therefore, the two major products of Haiguang are basically tied to a very strong downstream market. When the downstream market is booming, even if the sea light is lying on the ground, it is lying in a high -speed upward elevator. You must find your own unique development path.

In short, the rapid growth of the two major needs of the data center and the AI ​​field directly promoted the industrial status of Haiguang as the supplier.

On many occasions, Haiguang emphasizes the research path of "selling generations, verification, and research and development generation" to make the development of Haiguang catch up with the times and quickly improve product performance under the premise of fully respecting the market ecology.The core moat and steady stream of momentum and continuous development.[1] Haiguang Information Prospectus

[2] Embracing the CPU Star Sea and Light the GPU Dream Light Caitong Securities

[3] Domestic CPU leader, accelerate breakthroughs in high-end market-Haiguang Information In-depth Report Guojin Securities

[4] Haiguang Information (688041.SH): Focus on servers and data centers, high -end processor companies replaced East Asia Qianhai Securities by the wind

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