At present, the domestic cloud computing market has passed the early exploration stage and is entering a new round of development cycle. The main force of cloud computing is migrating from Pan Internet to traditional medium and large enterprises. At the same time, considering the relatively weak digital level of domestic traditional industries, cloud manufacturers need to continue to make efforts at the levels of project delivery, channel market and product integrity. There is still the possibility of local adjustment in the medium-term pattern of domestic cloud market, which also attracts new manufacturers such as byte to enter. The fast-growing market, outstanding scale effect and constantly optimized product structure are expected to promote the strength of first-line cloud manufacturers. It is recommended to focus on Alibaba cloud, Tencent
cloud, baidu cloud and other leading manufacturers for a long time. We are also optimistic about the cyclical investment opportunities of IDC and data center hardware (volume + price) brought by the expected reverse transfer of domestic cloud manufacturer capex in the second half of the year, as well as the opportunities of high-speed optical modules under the 400g technology cycle of North American cloud manufacturers.