[Sinolink Securities Computer] Compute Rental Expectation Gap Widens, Demand Explosion and Earnings Delivery, Overall Boom Continues to Rise

English summary

The sector was recently unjustly sold off, and the market overestimated the impact of BIS-related news. The compute rental sector recently adjusted due to BIS-related news, but we believe the market has overreacted: 1) Demand is exploding, making high-performance computing capacity increasingly valuable; 2) Q2 results have verified that compute rental companies have entered the phase of accelerated profit delivery, with Litong Electronics, Zhiwei Intelligence, Xingyun Technology, and Xiechuang Data all reporting explosive profit growth in Q2 performance forecasts; 3) Business involves operating entities, deployment regions, downstream customers, and other multi-layer relationships, making actual identification and enforcement difficult. BIS may not have a material impact. Domestic computing power focus: Commercialization of domestic models has entered a phase of exponential growth. We have repeatedly emphasized that the focus of this round of domestic computing power cycle is that domestic models have crossed the usability critical point. Domestic models represented by Zhipu have continuously improved coding and agent capabilities, with token usage and ARR entering exponential growth, driving further acceleration in computing demand. ...