神州数码：乘华为东风，勇作信创先锋

Investment Rating - The report maintains an "Overweight" rating for the company [1] Core Views - The company has three main business segments: IT distribution, cloud computing & digital transformation, and self-branded (Xinchuang) products IT distribution accounts for over 90% of revenue and provides a solid foundation for cloud and Xinchuang businesses [2] - From 2018 to 2023, the company's revenue grew from RMB 81 858 billion to RMB 119 624 billion, with a CAGR of 7 88% Non-GAAP net profit attributable to the parent company grew from RMB 472 million to RMB 1 263 billion, with a CAGR of 21 76% [2] - The company is a dual-leading partner of Huawei's Kunpeng and Ascend ecosystems, positioning it well to benefit from the rapid growth of domestic computing power demand [3] - The company is expected to achieve revenues of RMB 124 495 billion, RMB 131 179 billion, and RMB 139 614 billion in 2024-2026, with net profits of RMB 1 395 billion, RMB 1 664 billion, and RMB 1 992 billion, respectively [3] Business Segments IT Distribution - IT distribution is the company's traditional business, leveraging its cash flow, logistics, and channel systems to deliver IT products to the consumer market It holds a leading position in China's IT distribution industry with a comprehensive channel and sales network [10] - In 2023, IT distribution accounted for 91% of total revenue, with consumer electronics and enterprise value-added services contributing 67 88% and 32 12%, respectively [12][53] Cloud Computing & Digital Transformation - The cloud computing and digital transformation business provides full lifecycle products, solutions, and services for clients at different stages of digital transformation, including cloud resale (AGG), cloud management services (MSP), and digital solutions (ISV) [11] - Revenue from this segment grew from 0 71% in 2018 to 5 79% in 2023, making it the company's second-largest business [12] Self-Branded (Xinchuang) Products - The self-branded business, centered around Huawei's Kunpeng computing power, includes servers, PCs, and routers under the "Shenzhou Kuntai" brand [11] - Revenue from this segment accounted for 3 20% in 2023, with steady growth since the establishment of the Xiamen Xinchuang production base in 2020 [12] Financial Performance - From 2018 to 2023, the company's revenue grew from RMB 81 858 billion to RMB 119 624 billion, with a CAGR of 7 88% Non-GAAP net profit attributable to the parent company grew from RMB 472 million to RMB 1 263 billion, with a CAGR of 21 76% [2][20] - The company's gross margin and net margin remained stable at 3 99% and 1 01% in 2023, respectively [21] Strategic Partnerships - The company is a dual-leading partner of Huawei's Kunpeng and Ascend ecosystems, positioning it well to benefit from the rapid growth of domestic computing power demand [3] - The company has a long-standing partnership with Huawei, dating back to 2011, and has been deeply involved in the Kunpeng and Ascend ecosystems since 2018 [46] Future Outlook - The company is expected to achieve revenues of RMB 124 495 billion, RMB 131 179 billion, and RMB 139 614 billion in 2024-2026, with net profits of RMB 1 395 billion, RMB 1 664 billion, and RMB 1 992 billion, respectively [3] - The company's cloud and Xinchuang businesses are expected to continue growing, driven by the increasing demand for digital transformation and domestic computing power [12][3]