LCXX(000977) 东兴证券·2024-08-26 12:38Investment Rating - The report maintains a "Recommended" rating for the company [1][2]. Core Insights - The company achieved significant revenue growth in the first half of 2024, with total revenue reaching 42.064 billion yuan, representing a year-on-year increase of 68.7%. The domestic revenue was 29.800 billion yuan, up 46.9%, while overseas revenue surged to 12.264 billion yuan, marking a 171.5% increase. This growth is attributed to rising demand for customer servers [2]. - The company has a robust order backlog, with unfulfilled revenue obligations amounting to 13.957 billion yuan as of June 30, 2024, of which 13.743 billion yuan is expected to be recognized as revenue in 2024. This positions the company for continued growth in the second half of the year [2]. - Despite a decline in gross margin to 7.74%, down 3.6 percentage points year-on-year, the company effectively managed its expenses. Sales expenses were 0.694 billion yuan (1.7% of revenue), management expenses were 0.309 billion yuan (0.7%), and R&D expenses were 1.369 billion yuan (3.3%). The net profit for the period was 0.597 billion yuan, with a net profit margin of 1.4%, reflecting a 0.2 percentage point increase year-on-year [2]. Financial Projections - The company is expected to benefit from the global AI industry trend, with projected revenues of 82.667 billion yuan, 96.619 billion yuan, and 109.209 billion yuan for 2024, 2025, and 2026, respectively. Corresponding net profits are forecasted to be 2.323 billion yuan, 2.816 billion yuan, and 3.393 billion yuan, with price-to-earnings ratios of 20, 17, and 14 times [2][3].