The stones of other mountains can be used to attack jade.
Before cooperating with Huawei, Cialis was just a little-known car brand. After the questioning began, Cialis was widely concerned.
Since 2016, Tongfu Microelectronics has been "joint venture + cooperation" with AMD, and with the help of its technology and orders, it has developed into the second largest packaging and testing plant in China and the fourth largest in the world.
FII and NVIDIA have joined forces to build an advanced computing center based on GB200 servers, and the popularity has skyrocketed.
In addition, there are also Zhongji Innolight, Xin Yisheng, Shanghai Electric Co., Ltd., Tricolor Technology, Pengding Holdings, Dongshan Precision, etc.
Since Nvidia announced that some of the GB200 series products use copper cable interconnection, high-speed copper cable companies such as Wall Nuclear Materials, Huafeng Technology, DEREN Electronics, Kaiwang Technology, and Shenyu Co., Ltd. have been in the limelight for a while.
According to the information disclosed by NVIDIA, the connection between the GPU inside the AI chip GB200 and other parts will use 5,000 copper cables (with a total length of more than 3.2 kilometers).
Now that GB200 has entered mass production, it is expected to start shipping in the second quarter of 2024 and increase in volume in the third quarter. By 2025, shipments have the opportunity to exceed one million, accounting for 40%-50% of Nvidia's high-end GPU shipments.
Amazon, Google, Meta, Tesla, Microsoft, Dell, OpenAI, Oracle, and xAI will all use its GB200 products.
With the GB200 starting to put into production, the high-speed copper cable will also enter the performance harvest period. From 2023 to 2027, the global high-speed copper cable market is expected to grow from about $530 million to $1.26 billion, with a compound annual growth rate of nearly 25%.
Amphenol is the world's No. 1 producer of high-speed copper cable and a supplier to NVIDIA. Wall Nuclear Materials is Amphenol's high-speed communication wire provider, which can be said to be an indirect supplier to NVIDIA, and the performance elasticity is expected to be released.
At present, the company's 400G and 800G high-speed communication lines have achieved stable mass production, and some products are also in the proofing stage with Amphenol, and leading companies such as Tyco, Hollys, Molex, and Luxshare Precision are also the company's customers.
More importantly, the future of Wall Nuclear Materials is far more than wire products, electronic products (39.4%), power products (22.32%) and new energy products (15.04%) are the company's competitive and growth space business.
- Electronics.
Wall Nuclear Material's electronic products are mainly heat shrinkable materials, including heat shrinkable tubes, double-wall tubes, identification tubes, and busbar tubes
It is widely used in automobiles, consumer electronics, aviation, medical and other fields.
The company is the absolute leader in the heat shrinkable material market, with one of the largest market shares. The growth of this business is reflected in the expansion of applications in high-end fields such as automobiles, rail transit, and nuclear power construction.
Most domestic heat shrinkable material companies are concentrated in the low-end field, while foreign companies such as Sumitomo Chemical and Raychem occupy the majority of the high-end market, and there is a lot of room for domestic substitution.
On the basis of a solid foundation in the low-end basic disk, Wall Nuclear Materials has laid out the high-end market, and a number of products have passed testing and verification, such as aviation products have passed the certification of COMAC.
- Power products.
The company's power products are mainly suitable for cable accessories and separable connectors of various voltage levels, and the voltage level has reached 500kV ultra-high voltage.
In addition, the company is also committed to the production of nuclear-grade cable accessories, and is the only company in China that has won the bid to develop nuclear-grade cable accessories with a service life of 80 years, and the number of winning bids is in the forefront of the industry.
From 2019 to 2022, the investment in the national grid of the mainland has increased year by year, and the investment is expected to exceed 520 billion yuan in 2023 and 500 billion yuan in 2024.
This has brought demand to the company's cable accessories business, and its revenue has continued to grow from 771 million yuan in 2019 to 1.278 billion yuan in 2023. The mainland is still vigorously carrying out the construction of power grids, and the company is also continuing to develop higher voltage products, with performance growth expectations.
- New energy products.
Wall Nuclear Materials' new energy products are mainly used to charge charging guns for new energy vehicles, including DC charging guns, high-power liquid-cooled charging guns, etc. Among them, the market share of the national standard DC charging gun exceeds 60%, and the high-power liquid-cooled charging gun is supplied in batches.
For consumers, the endurance and energy supplement of new energy vehicles are issues that have to be considered, and the construction progress of charging piles greatly affects the penetration rate of new energy vehicles.
Continent's goal is to achieve a vehicle-to-pile ratio of 2:1 by 2025 and 1:1 by 2030, while the vehicle-to-pile ratio will be 2.4:1 in 2023.
Moreover, domestic sales of new energy vehicles are still rising sharply, and sales are expected to reach 1,200 in 2024, and the number of charging piles must also keep up.
Therefore, mainland charging piles and charging guns have a broad market space, and foreign charging piles are more scarce, and the ratio of vehicle piles in Europe in 2022 is as high as 16:1.
The company has been ready for the export of charging guns, completed the development of European standard and American standard AC and DC integrated charging guns, and passed the TUV certification.
In terms of performance, Wall Nuclear Materials has performed relatively steadily in recent years, achieving revenue of 5.723 billion yuan in 2023, a year-on-year increase of 7.16%, and a net profit of 701 million yuan, a year-on-year increase of 13.97%.
In the first quarter of 2024, the performance growth rate increased, achieving revenue of 1.389 billion yuan, a year-on-year increase of 21.62%, and a net profit of 184 million yuan, a year-on-year increase of 77.27%. With a number of businesses growing at full potential, the performance is expected to continue to maintain the growth trend.
In terms of profitability, Wall Nuclear Materials has always been at the forefront of the industry, with a gross profit margin of more than 30%, which is rare in the manufacturing industry, far exceeding companies in the same industry such as Jemet and Shangluo Electronics, and far exceeding industry leaders such as Midea Group, Tuopu Group, and Gree Group.
In addition, the company's gross profit margin will gradually increase after 2022, and we have analyzed that the electronics business and power business product companies are expanding to high-end.
With the increase in the proportion of its revenue, the company's gross profit margin is expected to continue to improve, of course, it is not excluded that the market competition is fierce, and the possibility of further price reductions of low-end products is not ruled out.
Finally, to sum up.
Wall Nuclear Materials is the company that has benefited the most from the application of high-speed copper cables by Nvidia in China, and other businesses also have high prosperity, and the performance and profitability are good, so by the end of 2023, the company has attracted 188 institutional positions.
The above is only for the analysis of listed companies and does not constitute investment advice.
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Source: Flying Whale Investment Research