Hygon Information Technology (688041) Guohai Securities·2024-07-18 10:00Investment Rating - The report maintains a "Buy" rating for the company [1][7]. Core Insights - The company is experiencing rapid revenue growth driven by the demand for AI computing and domestic innovation [1][4]. - The expected revenue for the first half of 2024 is projected to be between 35.80 billion to 39.20 billion yuan, representing a year-on-year increase of 37.08% to 50.09% [3]. - The company's net profit for the same period is anticipated to be between 7.88 billion to 8.86 billion yuan, with a year-on-year growth of 16.32% to 30.78% [3]. Summary by Sections Recent Performance - In Q2 2024, the company's revenue is estimated to be approximately 19.88 to 23.28 billion yuan, reflecting a year-on-year growth of 37% to 61% [1]. - The net profit attributable to the parent company is projected to be between 4.99 billion to 5.97 billion yuan, with a year-on-year increase of 14% to 36% [1]. Market Dynamics - The demand for domestic AI computing is accelerating, with significant adoption among internet, government, and enterprise clients [4]. - The penetration rate of domestic products in the general computing market is expected to increase, supported by government policies and industry standards [4]. Product Leadership - The company is positioned as a leader in domestic DCU and CPU markets, with products that offer versatility and ecosystem advantages [5]. - The company's CPU is widely used across various sectors, including telecommunications, finance, and education, supporting both high-end and mid-range server applications [6]. Financial Projections - Revenue forecasts for 2024 to 2026 are adjusted to 83.09 billion, 111.98 billion, and 149.56 billion yuan, respectively, with net profits projected at 17.35 billion, 23.43 billion, and 31.49 billion yuan [6]. - The earnings per share (EPS) are expected to be 0.75, 1.01, and 1.35 yuan for the years 2024 to 2026 [6].