FII(SH:601138) Zhi Tong Cai Jing·2025-10-22 14:14Core Viewpoint - Goldman Sachs has conducted research on Industrial Fulian, highlighting its optimistic outlook on AI server production capacity and its leading market position in the industry [1][3]. Group 1: Profitability - The management of Industrial Fulian emphasizes the importance of profit margins and aims to maintain stable gross profit contributions through four strategies: expanding scale by acquiring new customers and increasing order shares, focusing on high-margin projects by serving leading cloud service providers, enhancing R&D and automation in production, and improving management efficiency across global production bases [4]. Group 2: Competitive Advantages - Industrial Fulian's management is confident in its competitive edge in the AI server market due to high barriers in technology and production capabilities, a comprehensive product portfolio covering various AI server architectures, and strong ecosystem partnerships that facilitate AI deployment for clients [5][6]. Group 3: Network Equipment Business Expansion - The management is optimistic about the network equipment business, which is expected to benefit from generative AI trends, leading to upgrades in both shipment volumes and specifications. Industrial Fulian is projected to capture over 75% of the global market share in the switch sector by the second half of 2025, reinforcing its core supplier status [7][8]. Group 4: Target Price - Goldman Sachs has set a 12-month target price of RMB 83.8 for Industrial Fulian, based on a projected price-to-earnings ratio of 29.5 times for 2026, reflecting an analysis of peer valuations and fundamental returns [10].