Sugon(SH:603019) Dongxing Securities·2024-08-23 10:30Investment Rating - The report maintains a "Strong Buy" rating for the company [2][3]. Core Views - The company achieved steady revenue growth, with a total revenue of 5.712 billion yuan for the first half of 2024, representing a year-on-year increase of 5.77%. The net profit attributable to shareholders was 563 million yuan, up 3.38% year-on-year, while the net profit after deducting non-recurring gains and losses increased by 20% to 366 million yuan [2][3]. - The company is in a phase of continuous investment in computing power, with significant support for domestic computing power initiatives. The government has introduced various policies to promote the development of domestic computing power, and the company’s storage and computing products have gained recognition across multiple industries [3][4]. - The company is expected to benefit from the ongoing construction of computing power infrastructure and has a positive long-term development outlook, with projected net profits of 2.302 billion, 2.834 billion, and 3.398 billion yuan for 2024, 2025, and 2026, respectively [3][4]. Summary by Sections Financial Performance - In the first half of 2024, the company reported a revenue of 5.712 billion yuan, a 5.77% increase year-on-year, and a net profit of 563 million yuan, a 3.38% increase year-on-year. The net profit after deducting non-recurring items was 366 million yuan, reflecting a 20% increase [2][3]. - The gross margin for the first half of 2024 was 26.25%, slightly up from 26.04% in the same period last year, indicating stable profitability [2][3]. Computing Power Development - The company is actively involved in the construction of computing power infrastructure, with strong government support for domestic computing initiatives. Various local governments have introduced policies to promote the use of domestic chips in computing centers [3][4]. - The company has participated in the construction and operation of computing power service platforms in cities like Beijing, Chongqing, and Qingdao, contributing to the national integrated computing power network [3][4]. Profit Forecast - The company’s net profit forecasts for 2024, 2025, and 2026 are 2.302 billion, 2.834 billion, and 3.398 billion yuan, respectively, with corresponding earnings per share (EPS) of 1.57, 1.94, and 2.32 yuan [3][4].