LCXX(000977) 民生证券·2024-07-10 23:00Investment Rating - The report maintains a "Recommended" rating for the company, indicating a favorable outlook for investment based on its current valuation and market position [2]. Core Insights - The company is expected to achieve a net profit attributable to shareholders of 550-650 million yuan in the first half of 2024, representing a year-on-year growth of 76%-107%. The expected non-recurring net profit is projected to be 370-470 million yuan, a significant improvement from the previous year's loss of 1.17 million yuan [1]. - The revenue growth rate for the first half of 2024 is anticipated to exceed 60%, reflecting a robust demand in the server industry. The company has effectively capitalized on this upward trend by enhancing its product line and focusing on customer satisfaction [1]. - The company's actual profitability may be underestimated due to accounting standards, as increased inventory and asset impairment losses could impact reported profits. Historical data suggests that the company's true earnings potential may be higher than indicated by its financial statements [1]. - The company maintains a strong position as a global leader in the server market, with a 11.3% share of global server shipments, marking a 50.4% year-on-year increase [1]. - The company is actively developing its AI product matrix, with advancements in AI server capabilities and innovative cooling technologies aimed at enhancing performance and energy efficiency [1]. - Future profit projections for the company are 2.475 billion yuan in 2024, 2.911 billion yuan in 2025, and 3.445 billion yuan in 2026, with corresponding price-to-earnings ratios of 23, 20, and 17 [2]. Summary by Sections Financial Performance - The company expects a significant increase in revenue and net profit for the first half of 2024, driven by strong market demand and operational improvements [1]. - The projected financial metrics for 2024-2026 indicate a positive growth trajectory in both revenue and net profit, with a consistent increase in earnings per share [5][6]. Market Position - The company is recognized as a top player in the global server market, with substantial growth in shipment volumes and market share [1]. - The report highlights the company's strategic focus on AI technologies and innovative product development as key drivers for future growth [1]. Valuation - The current market valuation is considered low relative to the company's growth potential, supporting the "Recommended" investment rating [2].