LCXX(SZ:000977) Dongxing Securities·2024-07-17 10:00Investment Rating - The report maintains a "Recommended" rating for the company [2][3]. Core Views - The company is expected to achieve over 60% year-on-year revenue growth in the first half of 2024, with net profit projected to be between 550 to 650 million yuan, representing a year-on-year increase of 75.56% to 107.48% [2][3]. - The second quarter revenue is anticipated to exceed 22.07 billion yuan, showing a year-on-year growth of over 43.3%, driven by the recovery in general server demand and the gradual delivery of AI server orders [3]. - The company is positioned to benefit from the global AI industry trend, with adjusted revenue forecasts for 2024-2026 set at 82.67 billion yuan, 96.62 billion yuan, and 109.21 billion yuan respectively, and net profits projected at 2.32 billion yuan, 2.82 billion yuan, and 3.39 billion yuan [3][7]. Summary by Sections Company Overview - The company is a leading global provider of IT infrastructure products, solutions, and services, covering key areas such as computing, storage, and networking, and offering comprehensive digital solutions including cloud computing, big data, artificial intelligence, and edge computing [4]. Financial Performance - The company expects a net profit margin improvement in the second half of the year, with second quarter net profit estimated between 244 to 344 million yuan, reflecting a year-on-year growth of 112% to 199% [3]. - The company’s revenue for the first quarter of 2024 was 17.61 billion yuan, marking an 87.3% increase year-on-year [3]. Future Outlook - The company is likely to maintain a rapid growth trend in the second half of the year, supported by strong demand from major domestic clients in various sectors such as telecommunications, finance, and internet [3]. - The report highlights the potential for the company to expand its customer base both domestically and internationally, which could lead to an increase in overall profit margins [3].