Haitong Securities·2024-08-07 01:31Investment Rating - The investment rating for the company is "Outperform the Market" [3] Core Insights - The company is positioned to leverage opportunities in hybrid artificial intelligence, focusing on AI chips and comprehensive AI features to build core competitiveness [3] - The company anticipates a recovery in the PC market, with significant growth expected in AI-integrated devices and solutions [6] - The financial outlook shows a projected revenue growth of 9.56% for FY2025, with net profit expected to rise significantly in the coming years [6][9] Financial Performance Summary - FY2024 revenue is reported at $56.864 billion, a year-on-year decrease of 8%, while net profit is $1.011 billion, down 37% [4] - For FY2024 Q4, revenue reached $13.833 billion, marking a 9% increase year-on-year, with net profit soaring by 118% to $2.48 billion [4] - The smart device business group (IDG) generated $44.599 billion in revenue for FY2024, accounting for 78.43% of total revenue, despite a 9.67% decline year-on-year [8] Business Segment Analysis - The Infrastructure Solutions Group (ISG) reported revenue of $8.922 billion for FY2024, representing a 15.69% share of total revenue, with an 8.55% decline year-on-year [8] - The Solutions Services Group (SSG) achieved revenue of $7.472 billion, a 12.14% increase year-on-year, contributing 13.14% to total revenue [8] - The company expects continued growth in all business segments, particularly in AI solutions and services [5][6] Future Projections - Revenue projections for FY2025, FY2026, and FY2027 are $62.297 billion, $66.675 billion, and $70.966 billion respectively, with expected growth rates of 9.56%, 7.03%, and 6.44% [6][9] - The gross margin is anticipated to stabilize and improve, with estimates of 17.74%, 18.24%, and 18.74% for FY2025, FY2026, and FY2027 respectively [9] - The company aims to enhance its product offerings and operational capabilities to capture new market opportunities in AI and cloud solutions [6][8]