Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a revenue of 160.4 billion yuan in Q1 2025, representing a year-on-year increase of 35% and a quarter-on-quarter decrease of 7%. The net profit attributable to shareholders was 5.2 billion yuan, up 25% year-on-year but down 35% quarter-on-quarter [4] - The cloud computing business maintained strong momentum, with revenue growth exceeding 50% year-on-year in Q1 2025, driven by AI and general servers [5] - The company is expected to benefit from the growth in AI demand, with revenue projections for 2025-2027 adjusted to 758.7 billion, 955.8 billion, and 1,195.1 billion yuan respectively [7] Financial Performance Summary - In 2024, the company achieved a revenue of 609.1 billion yuan, a year-on-year increase of 28%, and a net profit of 23.2 billion yuan, up 10% year-on-year [4] - The cloud computing revenue reached 319.4 billion yuan in 2024, growing 64% year-on-year and accounting for over half of total revenue [6] - The company’s gross profit margin is projected to decline from 7.3% in 2024 to 6.3% in 2027 [9] - The earnings per share (EPS) are forecasted to be 1.47, 1.79, and 2.27 yuan for 2025, 2026, and 2027 respectively, with corresponding price-to-earnings (P/E) ratios of 13, 11, and 8 [7][9]

Investment Rating - The investment rating for Foxconn Industrial Internet is "Buy" with a 12-month price target of Rmb23.80, indicating an upside potential of 24.9% from the current price of Rmb19.06 [9]. Core Insights - The management of Foxconn Industrial Internet remains optimistic about growth in 2025, driven by generative AI, which is expected to significantly boost the company's AI servers and high-speed networking equipment [1][3]. - The company has demonstrated strong growth in cloud computing revenues, which increased by over 50% year-on-year in Q1 2025, with revenues from cloud service providers (CSPs) growing by over 60% year-on-year [3]. - The company is well-positioned to navigate geopolitical tensions due to its global production capabilities and strong management across various operational aspects [3]. Summary by Sections AI Servers Outlook - Management is positive about the AI servers and networking business, expecting continued growth throughout the year. The company has competitive strengths in R&D, automated production, and a comprehensive product offering [3]. - The cloud computing segment's revenue growth is attributed to both AI servers and general servers, with brand customers also showing a growth of over 30% year-on-year [3]. Global Production Sites - The company emphasizes its global production capabilities, which allow it to meet client needs amid geopolitical uncertainties. It has established production sites in the US, including Wisconsin, California, and Texas, capable of producing various AI server models [3]. - The focus on high-value products and automated production in the US enhances yield rates and production efficiency [3]. Switch Business Growth - Management is optimistic about the growth of the switch business, particularly high-speed switches, with revenue growth for 400G and 800G switches projected to be in triple digits for 2024 [4][7]. - The company's 800G switch is already in shipment, contributing to rising revenue, and it serves leading brand customers such as Cisco, Arista, and NVIDIA [4][7].

本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： | 回购方案首次披露日 | 2025/4/15 | | | | | | | --- | --- | --- | --- | --- | --- | --- | | 回购方案实施期限 | 年 月 2025 4 30 4 | 日~2026 | 年 | 月 | 29 | 日 | | 预计回购金额 | 50,000万元~100,000万元 | | | | | | | 回购用途 | √减少注册资本 □用于员工持股计划或股权激励 | | | | | | | | □用于转换公司可转债 | | | | | | | | □为维护公司价值及股东权益 | | | | | | | 累计已回购股数 | 249.75万股 | | | | | | | 累计已回购股数占总股本比例 | 0.01% | | | | | | | 累计已回购金额 | 4,787.80万元 | | | | | | | 实际回购价格区间 | 18.96元/股~19.25元/股 | | | | | | 一、回购股份的基本情况 ...

Core Viewpoint - The company has initiated a share buyback program, aiming to enhance shareholder value and confidence in the company's stock performance [1] Group 1: Share Buyback Details - The company announced a plan to repurchase shares using its own funds, with a total budget set between 500 million yuan and 1 billion yuan [1] - The maximum repurchase price is capped at 20 yuan per share, and the buyback period will last up to 12 months from the approval date [1] - As of May 16, 2025, the company has repurchased 2.4975 million shares, representing 0.01% of its total share capital, at prices ranging from 18.96 yuan to 19.25 yuan per share, utilizing a total of 47.878 million yuan [1]

Core Insights - The company reported a revenue of 609.135 billion yuan for 2024, a year-on-year increase of 27.88%, with a net profit attributable to shareholders of 23.216 billion yuan, up 10.34% year-on-year [1] - In Q1 2025, the company achieved a revenue of 160.415 billion yuan, representing a year-on-year growth of 35.16%, and a net profit of 5.231 billion yuan, which is a 24.99% increase year-on-year [1] Business Performance - Cloud computing revenue reached 319.377 billion yuan in 2024, growing by 64.37%, with a gross margin of 4.99%, a slight decrease of 0.09 percentage points [2] - Revenue from communication and mobile network equipment was 287.899 billion yuan, up 3.2%, with a gross margin of 9.56%, down 0.24 percentage points [2] - Industrial internet revenue fell to 0.094 billion yuan, a decline of 42.92%, with a gross margin of 45.79%, down 4.02 percentage points [2] Geographic Revenue Breakdown - Revenue from Mexico, Vietnam, Singapore, and mainland China in 2024 was 210.272 billion yuan, 45.931 billion yuan, 4.509 billion yuan, and 347.502 billion yuan respectively [2] - Non-current assets in these regions were valued at 2.512 billion yuan, 6.053 billion yuan, 1.615 billion yuan, and 25.269 billion yuan respectively [2] Strategic Positioning - The company is benefiting from the AI wave and has established a "2+2" new strategy focusing on "high-end intelligent manufacturing + industrial internet" and expanding into "big data (including metaverse computing power and energy storage) + robotics" [3] - The company has deep collaborations with leading clients in various sectors, including Cisco, Huawei, Nvidia, AWS, and Tencent, which strengthens its market position [3] Future Projections - The company is expected to achieve net profits attributable to shareholders of 27.246 billion yuan, 35.181 billion yuan, and 38.859 billion yuan for the years 2025 to 2027 respectively [3]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Views - The company reported a significant increase in revenue and profit for 2024 and Q1 2025, driven by the growth in AI server demand. In 2024, the company achieved a revenue of 609.135 billion yuan, a year-on-year increase of 27.88%, and a net profit attributable to shareholders of 23.216 billion yuan, up 10.34% year-on-year. For Q1 2025, revenue reached 160.415 billion yuan, a 35.16% increase year-on-year, with a net profit of 5.231 billion yuan, up 24.99% year-on-year [5][12] Financial Performance - In 2024, the company's revenue from cloud computing was 319.377 billion yuan, growing 64.37% year-on-year, while the gross margin was 4.99%, a decrease of 0.09 percentage points. Revenue from communication and mobile network equipment was 287.899 billion yuan, up 3.2% year-on-year, with a gross margin of 9.56%, down 0.24 percentage points. Industrial internet revenue fell by 42.92% to 0.094 billion yuan, with a gross margin of 45.79%, down 4.02 percentage points [12] - The company expects net profits attributable to shareholders to reach 27.246 billion yuan, 35.181 billion yuan, and 38.859 billion yuan for 2025, 2026, and 2027, respectively [12] Business Strategy - The company is benefiting from the AI wave and has established a "2+2" new strategy, focusing on high-end intelligent manufacturing and industrial internet while actively developing new businesses in big data (including metaverse computing power and energy storage) and robotics. The company has deep collaborations with leading global clients in various sectors, including Cisco, Huawei, Nvidia, and AWS [12]

Investment Rating - The report maintains a "Buy" rating for the company [1][5] Core Views - The company is expected to achieve steady growth in revenue and net profit, with a projected revenue of RMB 609.14 billion in 2024, representing a year-on-year increase of 27.88%, and a net profit of RMB 23.22 billion, up 10.34% year-on-year [8] - The cloud computing segment is anticipated to show strong growth, with revenue expected to exceed RMB 3.19 trillion in 2024, a year-on-year increase of 64.37%, marking a significant contribution to overall revenue [8] - The company is focusing on advanced product development and has a diversified performance elasticity that is expected to accelerate [5] Financial Summary - The company’s projected revenue for 2025 is RMB 756.42 billion, with a growth rate of 24.2% [7] - The expected net profit for 2025 is RMB 29.37 billion, reflecting a growth rate of 26.5% [7] - The company’s EBITDA for 2025 is projected to be RMB 39.10 billion, with a corresponding PE ratio of 13.0 times [5][7] - The company’s gross margin for 2024 is expected to be 7.28%, a decrease of 0.78 percentage points year-on-year [8] - The company’s total market capitalization is approximately RMB 382.68 billion [3]

Core Viewpoint - Industrial Fulian (601138) has been rated as a "Buy" by Zhongyin International Securities, highlighting its robust growth in cloud computing and diversified business layout [1][5]. Financial Performance - In 2024, Industrial Fulian achieved a revenue of 609.135 billion yuan, a year-on-year increase of 27.88%, and a net profit attributable to shareholders of 23.216 billion yuan, up 10.34% year-on-year [2]. - For Q1 2025, the company reported a revenue of 160.415 billion yuan, reflecting a year-on-year growth of 35.16% [2]. Business Segments - Cloud Computing: In 2024, the cloud computing segment generated revenue of 319.377 billion yuan, a significant year-on-year increase of 64.37%, accounting for over 50% of total revenue. AI server revenue surged over 150% [3]. - Communication and Mobile Network Equipment: This segment achieved revenue of 287.898 billion yuan in 2024, showing stable growth. The shipment of 5G terminal precision components increased by 10% year-on-year [3]. Future Outlook - The company is expected to continue its growth trajectory, with projected revenues of 756.419 billion yuan, 912.678 billion yuan, and 1,055.289 billion yuan for 2025, 2026, and 2027, respectively [5]. - The net profit forecasts for the same years are 29.366 billion yuan, 35.390 billion yuan, and 40.221 billion yuan, with corresponding P/E ratios of 13.0, 10.8, and 9.5 [5]. Market Sentiment - Over the past 90 days, 12 institutions have rated the stock, with 9 "Buy" ratings and 3 "Hold" ratings, indicating positive market sentiment [10].

Investment Rating - The report maintains a "Buy" rating for the company [1][5] Core Views - The company is experiencing steady growth with a focus on optimizing its product structure and enhancing operational efficiency, supported by strong performance in its cloud computing and telecommunications segments [3][8] - Revenue and net profit for 2024 are projected to be RMB 609.14 billion and RMB 23.22 billion, respectively, reflecting year-on-year growth rates of 27.88% and 10.34% [8] - The company is expected to achieve significant revenue growth in the coming years, with projected revenues of RMB 7,564.19 billion, RMB 9,126.78 billion, and RMB 10,552.89 billion for 2025, 2026, and 2027, respectively [5][7] Financial Summary - The company’s main revenue for 2023 is RMB 476.34 billion, with a projected growth rate of 27.9% for 2024 [7][25] - The EBITDA for 2024 is expected to be RMB 32.23 billion, with a net profit of RMB 23.22 billion [7][25] - The projected earnings per share (EPS) for 2025 is RMB 1.48, with a corresponding price-to-earnings (P/E) ratio of 13.0 [5][25] - The company’s gross margin for 2024 is expected to be 7.28%, with a net profit margin of 3.81% [8][25] Business Segments - The cloud computing segment is anticipated to show robust growth, with revenues expected to exceed RMB 3,193.77 billion in 2024, marking a year-on-year increase of 64.37% [8] - The telecommunications and mobile network equipment segment is also projected to grow steadily, with revenues of RMB 2,878.98 billion in 2024 [8] - The company is focusing on AI server products, which have seen revenue growth exceeding 150%, becoming a core growth driver [8]

Core Insights - In 2024, the company achieved a revenue growth of 27.9% year-on-year, with a net profit attributable to shareholders increasing by 10.3% [1] - The revenue for 2024 reached 609.135 billion yuan, driven primarily by significant growth in the cloud computing sector [1] - The first quarter of 2025 continued to show high growth in revenue and profit, although gross margin experienced a decline [1] Revenue and Profit Analysis - For Q1 2025, the company reported a revenue of 160.415 billion yuan, reflecting a year-on-year increase of 35.16% but a quarter-on-quarter decrease of 7.15% [1] - The net profit attributable to shareholders for Q1 2025 was 5.231 billion yuan, marking a year-on-year increase of 24.99% and a quarter-on-quarter decrease of 35.23% [1] Cloud Computing Business - The cloud computing segment generated revenue of 319.377 billion yuan in 2024, representing a year-on-year growth of 64.37% and accounting for 52.5% of total revenue for the first time [1] - The gross margin for the cloud computing business was 4.99%, showing a slight decline of 0.09 percentage points year-on-year [1] Communication and Mobile Network Equipment - Revenue from communication and mobile network equipment reached 287.898 billion yuan in 2024, with a year-on-year growth of 3.20%, contributing 47.3% to total revenue [1] - The gross margin for this segment was 9.56%, down by 0.24 percentage points year-on-year [1] Industrial Internet Business - The industrial internet business reported revenue of 0.094 billion yuan in 2024, a significant decline of 42.92% year-on-year, representing only 0.2% of total revenue [1] - The gross margin for the industrial internet segment was 45.79%, down by 4.02 percentage points year-on-year [1] Investment Outlook - The company maintains an "outperform the market" rating, anticipating rapid growth in cloud computing and AI server businesses due to large-scale infrastructure development [1] - Projected revenues for 2025-2027 are 796.377 billion yuan, 962.288 billion yuan, and 1,151.385 billion yuan respectively [1]