Sugon(603019) 华创证券·2024-08-23 10:12Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 53 yuan, compared to the current price of 36.51 yuan [1]. Core Views - The company has a complete ecosystem for high-end computing products, showing stable growth in net profit excluding non-recurring items, with a 20% increase in the first half of 2024 [1]. - The company is expected to benefit from the ongoing domestic substitution policies and the AI wave, with a projected net profit of 22.38 billion yuan for 2024, growing to 31.90 billion yuan by 2026 [1][2]. - The company is actively building a "National Integrated Computing Power Service Platform" to accelerate AI hardware and software collaboration [1]. Financial Performance Summary - In the first half of 2024, the company achieved operating revenue of 5.712 billion yuan, a year-on-year increase of 5.77%, and a net profit of 563 million yuan, up 3.38% [1]. - The gross profit margin for the first half of 2024 was 26.25%, an increase of 0.21 percentage points year-on-year, while the net profit margin was 9.93%, a decrease of 0.98 percentage points [1]. - The company’s sales in Q2 2024 reached 3.233 billion yuan, with a year-on-year growth of 4.21% and a net profit of 310 million yuan, reflecting a 20.76% increase [1]. Future Projections - The company’s total revenue is projected to grow from 14.353 billion yuan in 2023 to 22.095 billion yuan by 2026, with a compound annual growth rate of approximately 15.8% [2]. - The net profit is expected to increase from 1.836 billion yuan in 2023 to 3.190 billion yuan in 2026, with a growth rate of 18.1% [2]. - Earnings per share are forecasted to rise from 1.25 yuan in 2023 to 2.18 yuan in 2026, indicating a strong upward trend in profitability [2].