Tianfeng Securities·2024-08-20 00:30Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock over the next six months [7]. Core Insights - The company achieved a revenue of 62.49 billion yuan in the first half of 2024, representing a year-on-year growth of 2.9%. The net profit attributable to shareholders was 5.73 billion yuan, up 4.8% year-on-year [1][2]. - The company continues to focus on the "Connection + Computing Power" strategy, showing resilience in a challenging global economic environment [2][4]. - The operator network business saw a revenue decline of 8.61% year-on-year, while the enterprise business grew significantly by 56.09% due to increased demand for servers and storage [2][3]. Financial Performance - The gross margin for the first half of 2024 was 40.47%, a decrease of 2.75 percentage points year-on-year, primarily due to changes in product mix and a decline in the share of high-margin operator business [3]. - The company effectively managed expenses, with sales, management, and R&D costs all decreasing year-on-year, contributing to improved profitability [3]. - The company expects to achieve net profits of 10.3 billion, 11.4 billion, and 12.5 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding valuations of 12, 11, and 10 times [5]. Market Opportunities - The company is actively embracing AI and enhancing its data center offerings, positioning itself to capture opportunities in the digital economy [4]. - The global market for the company's products has seen a year-on-year growth of over 50%, particularly in the Philippines and Indonesia [4]. - The company is investing over 20 billion yuan annually in R&D, which strengthens its capabilities in providing comprehensive solutions and self-developed chips [4].