FII(SH:601138) Huachuang Securities·2024-08-14 05:06Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expectation to outperform the benchmark index by over 20% in the next six months [2][19]. Core Insights - The company's revenue for the first half of 2024 reached 266.09 billion yuan, a year-over-year increase of 28.69%, with a net profit attributable to shareholders of 8.739 billion yuan, up 22.04% year-over-year [2][3]. - The significant revenue growth in the first half of 2024 is primarily driven by the surge in AI server sales, with cloud computing revenue increasing by 60% year-over-year [3]. - The company has established partnerships with leading clients such as Microsoft, AWS, and NVIDIA, which enhances its competitive position in the rapidly growing AI server market [3]. Financial Performance Summary - For Q2 2024, the company reported revenue of 147.40 billion yuan, reflecting a year-over-year growth of 46.11% and a quarter-over-quarter increase of 24.19% [2]. - The net profit for Q2 2024 was 4.554 billion yuan, representing a year-over-year increase of 12.93% [2]. - The company forecasts a net profit of 25.239 billion yuan for 2024, with projected growth rates of 20% for 2025 and 15.1% for 2026 [4][3]. Market Trends and Opportunities - The global AI server market is expected to reach 24.8 billion USD in 2023, with a growth rate of 27% year-over-year, positioning the company to benefit from this trend [3]. - The company anticipates that AI will contribute 40% to its total cloud computing revenue in 2024, with AI servers capturing a 40% share of the global market [3]. - The switch and router business is also expected to grow alongside AI trends, with significant revenue increases in high-speed switches [3].