LCXX(SZ:000977) Ping An Securities·2024-07-11 09:30Investment Rating - The report maintains a "Recommend" rating for the company [2][8] Core Views - The company is expected to achieve a net profit attributable to shareholders of between 550 million to 650 million yuan in the first half of 2024, representing a year-on-year growth of 75.56% to 107.48% [5][6] - The company is positioned as a global leader in the server industry, benefiting from the increasing demand for computing power [6][8] - The company has a strong focus on AI server technology and liquid cooling solutions, which are expected to drive future growth [6][8] Financial Performance Summary - The company anticipates a revenue increase of over 60% year-on-year for the first half of 2024 [6] - The projected net profit for 2024 is adjusted to 2.305 billion yuan, with EPS estimates of 1.57 yuan, 1.97 yuan, and 2.42 yuan for 2024, 2025, and 2026 respectively [8][10] - The company’s total revenue for 2024 is expected to reach 85.58 billion yuan, with a year-on-year growth of 29.9% [7][10] Market Position and Growth Drivers - The company holds an 11.3% market share in the global server market, ranking first in China and second globally, with a year-on-year growth of 50.4% in shipment volume [6][8] - The liquid cooling server market is projected to grow at a compound annual growth rate of 45.8%, reaching a market size of 10.2 billion USD by 2028, positioning the company to benefit from this trend [8] - The company is actively expanding its product line and enhancing customer satisfaction to capture growth opportunities in both domestic and international markets [6][8]