Hygon Information Technology (SH:688041) KAIYUAN SECURITIES·2024-07-15 05:30Investment Rating - The investment rating for the company is "Buy" (maintained) [2][5][13] Core Views - The company is expected to achieve significant revenue growth, with a forecasted revenue of 35.8-39.2 billion yuan for the first half of 2024, representing a year-on-year increase of 37.08% to 50.09% [6] - The net profit for the same period is projected to be between 7.88-8.86 billion yuan, showing a year-on-year growth of 16.32% to 30.78% [6] - The company is well-positioned in the domestic CPU and DCU markets, which supports the long-term growth outlook [5][7] Financial Projections - The forecasted net profit for 2024-2026 is 17.93 billion, 25.18 billion, and 33.70 billion yuan respectively, with corresponding EPS of 0.77, 1.08, and 1.45 yuan per share [5] - The current price-to-earnings (PE) ratios are projected to be 91.5, 65.2, and 48.7 for the years 2024, 2025, and 2026 respectively [5] - The company’s revenue is expected to grow from 8.617 billion yuan in 2024 to 16.417 billion yuan in 2026, with year-on-year growth rates of 43.3% and 35.0% respectively [9] Market Position and Industry Outlook - The domestic computing power market is anticipated to experience unprecedented growth, driven by government initiatives and increasing demand for domestic solutions [7] - The company’s DCU series products are expected to become mainstream GPU products in China, leveraging their compatibility with major AI models [8] - The overall computing power scale in China is projected to exceed 300 EFLOPS by 2025, with a significant portion attributed to intelligent computing [7]