LCXX(SZ:000977) Guotai Junan Securities·2024-07-14 23:31Investment Rating - The investment rating for the company is "Buy" with a target price of 72.58 CNY, maintaining the previous target price [2][4]. Core Views - The company is expected to achieve a historical high in revenue for the first half of 2024, with a projected year-on-year growth of over 60%, reaching more than 39.7 billion CNY. The net profit is anticipated to grow significantly, with estimates ranging from 550 to 650 million CNY, reflecting a year-on-year increase of 75.56% to 107.48% [4]. - The global computing power market is experiencing rapid growth, with the company maintaining its leading position in the market. In Q1 2024, the global server market sales increased by 59.9% year-on-year, while the Chinese x86 general server market saw a 23.3% increase [4]. - The demand for large model training and inference is expected to drive the company's business beyond expectations, as major internet clients increase their investments in AI model development [4]. Financial Summary - The company's revenue for 2024 is projected to be 83.616 billion CNY, with a year-on-year growth of 26.9%. The net profit for the same year is expected to be 2.497 billion CNY, reflecting a 40% increase [7][8]. - The earnings per share (EPS) for 2024 is estimated at 1.70 CNY, with subsequent years showing growth to 1.98 CNY in 2025 and 2.26 CNY in 2026, representing year-on-year growth rates of 40%, 17%, and 14% respectively [4][7]. - The company’s total market capitalization is approximately 55.47 billion CNY, with a current price of 37.68 CNY per share [5].