Hygon Information Technology (SH:688041) Huafu Securities·2024-07-15 10:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the market benchmark within the next six months [12]. Core Views - The company is projected to achieve revenue of 35.8-39.2 billion yuan in H1 2024, representing a year-on-year growth of 37.08% to 50.09%. For Q2 2024, revenue is expected to reach 21.58 billion yuan, with a year-on-year increase of 49% and a quarter-on-quarter increase of 36% [1]. - The net profit for H1 2024 is forecasted to be between 7.88-8.86 billion yuan, with a year-on-year growth of 16.32% to 30.78%. For Q2 2024, the net profit is expected to be 5.48 billion yuan, reflecting a year-on-year increase of 25% and a quarter-on-quarter increase of 90% [1]. - The company's net profit margin is projected to be 22.3% for H1 2024, with a Q2 2024 margin of 25.4%, showing a year-on-year decline but a quarter-on-quarter improvement [2]. - The company is positioned as a leader in domestic computing chips, benefiting from the growing demand for domestic CPU and DCU products amid the rise of AI and the domestic self-sufficiency trend [3]. - The report anticipates that the company will achieve revenues of 87.0 billion yuan, 118.4 billion yuan, and 151.0 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding net profits of 18.2 billion yuan, 25.9 billion yuan, and 36.0 billion yuan [4]. Financial Summary - The company is expected to have a total revenue of 6,012 million yuan in 2023, growing to 8,699 million yuan in 2024, with a growth rate of 45% [7]. - The projected net profit for 2023 is 1,263 million yuan, increasing to 1,818 million yuan in 2024, reflecting a growth rate of 44% [7]. - The earnings per share (EPS) is forecasted to be 0.54 yuan in 2023, rising to 0.78 yuan in 2024 [7]. - The company’s price-to-earnings (P/E) ratio is expected to be 90.3 in 2024, decreasing to 63.4 in 2025 and 46 in 2026 [7].