LCXX(SZ:000977) Huachuang Securities·2024-08-26 13:40Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 36.5 yuan, compared to the current price of 31.60 yuan [2]. Core Insights - The company achieved record revenue of 42.064 billion yuan in H1 2024, representing a year-on-year growth of 68.71%. The net profit attributable to shareholders was 597 million yuan, up 90.56% year-on-year, while the net profit excluding non-recurring items surged by 3779.50% to 422 million yuan [2]. - The company continues to hold a strong position in the server market, with a global market share of 11.3% and a year-on-year growth of 50.4% in server shipments, making it the fastest-growing among the top five manufacturers [2]. - The overseas revenue reached 12.264 billion yuan, marking a significant year-on-year increase of 171.54%, with overseas revenue accounting for 29.16% of total revenue, up 11.04 percentage points year-on-year [2]. Financial Performance Summary - For H1 2024, the company reported a gross margin of 7.74%, a decrease of 3.66 percentage points year-on-year, while the net profit margin increased by 0.11 percentage points to 1.37% [2]. - The projected revenue for 2024-2026 is expected to be 80.525 billion yuan, 93.760 billion yuan, and 105.538 billion yuan, with corresponding growth rates of 22.3%, 16.4%, and 12.6% [3]. - The net profit attributable to shareholders is forecasted to be 2.156 billion yuan, 2.716 billion yuan, and 3.202 billion yuan for the same period, with growth rates of 20.9%, 26.0%, and 17.9% respectively [3].