The shareholders' meeting of the Industrial Fortune Federation approved the 10 billion dividend plan, and Chairman Zheng Hongmeng responded to market concerns

Securities Times E Company

2024-06-24 21:24Published on the official account of "E Company" under Guangdong Securities Times

On June 24, FII (601138) held its 2023 annual general meeting of shareholders and deliberated and approved a cash dividend plan totaling about 11.521 billion yuan.

At the same time, Zheng Hongmeng, chairman of the Federation of Industrial Fortune Union, also responded to the future development of AI servers, AI mobile phones and other business issues that the market is concerned about. He said that in the future, the company's two major businesses of cloud computing and mobile phone mechanical parts are expected to go hand in hand, and the company will also benefit from the dual benefits of AI computing power and AI mobile phones, and believes that it can present better performance for shareholders.

According to public information, as one of the leading A-share computing power concept stocks and one of Apple's concept stocks, FII is deeply bound to NVIDIA in the field of cloud computing, cooperates with NVIDIA to launch AI servers, and cooperates in the construction of artificial intelligence (AI) factories, etc., while in terms of mobile phone mechanical parts, it supplies well-known consumer electronics companies such as Apple.

At this shareholders' meeting, in response to the future development prospects of the AI server business, which is highly concerned by the market, Zheng Hongmeng said that benefiting from the rapid growth of global AI computing power demand, the company is expected to contribute 40% of the company's total cloud computing revenue in 2024, and AI servers will account for 40% of the global market share.

"It's safe to say that there is nothing to worry about in the development of the industry." Zheng Hongmeng said that the AI industry is booming, on the one hand, AI technology has been widely used in autonomous driving, medical care, smart cities, carbon emissions and other fields, and even some countries have begun to explore sovereign AI; On the other hand, capital spending by major cloud service providers in North America will grow to $200 billion in 2024 from $140 billion in 2023, and this trend is expected to continue in the future.

Zheng Hongmeng said that the company is one of the few manufacturers in the industry that can provide complete solutions, and the company has a global diversified production capacity layout, the company's advantages in the AI supply chain will be further highlighted in the future, and the cooperation with important customers will be further deepened, and the company is also actively exploring cooperation opportunities with new customers, "At present, the company's cooperation with customers is progressing well, and I believe that the future will be reflected in the business performance."

When asked about the progress of the shipment of the new generation of AI server GB200, Zheng Hongmeng responded that everything is currently going as scheduled, whether it is the 36 or 72 version, the progress is going well, and it is expected to be officially launched this year, and continue to be introduced to the market according to the plan, "At present, we have many customers at home and abroad, and the visibility of new product orders is believed to bring significant incremental contributions to business growth today, tomorrow and the year after tomorrow."

In addition to the field of cloud computing, FII is also a supplier of key links in consumer electronics, Zheng Hongmeng said at the meeting, the precision mechanical parts business has been to the company has brought considerable revenue and profit contribution, in 2023, the company's precision mechanical parts business shipments remain stable, high-end model mechanical parts shipments are better than expected, since 2024, high-end model mechanical parts shipments have maintained better than the market performance, the future will be expected to benefit from the development of AI mobile phones, to achieve further growth.

"Compared with traditional mobile phones, AI mobile phones have higher energy consumption and higher heat dissipation requirements, so the mastery of metal materials is very high." Zheng Hongmeng said that FII has mastered many important materials and process technologies for metal mechanical parts, including plasticity, heat dissipation, colorability, lightweight, etc.

Zheng Hongmeng said that as a "double leader" leader in cloud computing and mobile phone mechanical parts, the two major businesses are expected to go hand in hand in the future, and the company will also benefit from the dual benefits of AI computing power and AI mobile phones, and believes that it can present better performance for shareholders.

At the meeting, Zheng Hongmeng also revealed the shipment of high-speed switches and other products, he said that the company's 400G shipments continue to grow, 800G is accelerating the introduction and deployment of production, the company's customers are mainly global Tier-1 network equipment suppliers, 800G switches are beginning mass production, is expected to be shipped in Q2 and Q3 in 2024, and the company's high-speed switch product portfolio covers Ethernet, Infiniband and NVLink With the diversified deployment of Switch, I believe that with the continuous iterative upgrading of products, the company's profitability is bound to further increase.

The general meeting of shareholders also reviewed and approved the 2023 annual cash dividend plan with a total amount of about 11.521 billion yuan, with a dividend rate of 54.76%, a new high since the company's listing. So far, since its listing in 2018, FII has paid a cumulative dividend of more than 43.8 billion yuan.

Zheng Hongmeng said that in the future, the company will continue to focus on "GenAI+ core competitiveness", accelerate the construction of new quality productivity, further expand development advantages, maintain sustainable growth in performance, and continue to create value for shareholders.

View original image 1.79M

•