Super Micro Computer(US:SMCI) Great Wall Securities·2024-08-12 08:18Investment Rating - The report maintains a rating of "Buy" for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [11]. Core Insights - The company reported a record revenue of $5.308 billion for Q4 FY2024, representing a year-over-year growth of 142.95% and a quarter-over-quarter growth of 37.87%. The full-year revenue for FY2024 reached $14.943 billion, up 109.77% year-over-year [1][2]. - The company is experiencing strong demand for its next-generation air-cooled and direct liquid-cooled AI GPU platforms, although some key component shortages have delayed approximately $800 million in orders to July [2]. - The company is expanding its product matrix in AI and enhancing its liquid cooling product delivery capabilities, with plans to increase liquid cooling rack production capacity from 1,500 units per month to 3,000 units by the end of FY2025 [2][4]. - The company expects to see a gradual improvement in gross and operating profit margins in FY2025, driven by changes in product and customer mix, improved manufacturing efficiency, and new platform launches [2][4]. Financial Summary - For FY2023, the company achieved a revenue of $7.123 billion, with a projected revenue of $14.943 billion for FY2024, and estimates of $28 billion, $36.653 billion, and $42.315 billion for FY2025, FY2026, and FY2027 respectively [1][6]. - The net profit for FY2023 was $640 million, with projections of $1.208 billion for FY2024, $1.998 billion for FY2025, $2.950 billion for FY2026, and $4.130 billion for FY2027 [1][6]. - The company’s ROE is projected to be 32.5% for FY2023, decreasing to 22.1% in FY2024, and then gradually increasing to 28.4% by FY2027 [1][7]. - The EPS is expected to rise from $10.64 in FY2023 to $68.68 by FY2027, reflecting strong earnings growth [1][7]. Industry Overview - The company operates in the high-performance server and storage systems market, focusing on enterprise data centers, cloud computing, AI, 5G, and edge computing [4]. - The company has launched several innovative products in FY2024, enhancing its product delivery capabilities and expanding its application range [4].