LCXX(000977) 国泰君安·2024-09-05 06:10Investment Rating - Maintains an "Overweight" rating with a target price of 72.58 RMB [3][4] - The target price corresponds to a 43x PE ratio for 2024 [3] Core Views - Revenue and profits continue to grow rapidly, with overseas revenue experiencing explosive growth [3] - The company's management and R&D expenses decreased by 22.91% and 3.84% respectively in H1 2024, while sales expenses increased slightly by 2.66%, leading to an overall expense ratio drop of 4.04 percentage points to 5.52% [3] - Overseas revenue in H1 2024 reached 12.264 billion RMB, a year-on-year increase of 171.54%, accounting for 29.16% of total revenue, up 10.95 percentage points year-on-year [3] - The high demand for AI computing power is expected to drive the company's business beyond expectations [3] Financial Performance - H1 2024 revenue reached 42.064 billion RMB, a year-on-year increase of 68.71%, with net profit attributable to the parent company reaching 597 million RMB, a year-on-year increase of 90.56% [3] - The company's EPS for 2024-2026 is forecasted to be 1.70, 1.98, and 2.26 RMB, with year-on-year growth rates of 40%, 17%, and 14% respectively [3] - The company's market share in the server industry remains second globally and first in China, according to Gartner and IDC data for Q1 2024 [3] Product and Technology Development - The company has launched the EPAI enterprise large model development platform, supporting over 20 heterogeneous acceleration computing chips, reducing trial-and-error costs for enterprises in large model application development [3] - The company has also released the "Yuan 2.0-M32" open-source large model to help enterprises efficiently implement AI applications [3] - Multiple stable and efficient AI server products have been launched, including an AI general-purpose server developed in collaboration with Intel, which is the first in the industry to run a trillion-parameter large model on a general-purpose processor [3] Market and Industry Position - The company is a global leader in the server industry, with a strong position in both domestic and international markets [3] - The company's market share in the server industry remains second globally and first in China, according to Gartner and IDC data for Q1 2024 [3] Financial Forecasts - Revenue for 2024-2026 is forecasted to be 83.616 billion, 95.531 billion, and 106.849 billion RMB, with year-on-year growth rates of 26.9%, 14.3%, and 11.8% respectively [9] - Net profit attributable to the parent company for 2024-2026 is forecasted to be 2.497 billion, 2.917 billion, and 3.322 billion RMB, with year-on-year growth rates of 40.0%, 16.9%, and 13.9% respectively [9] - The company's ROE for 2024-2026 is forecasted to be 12.3%, 12.7%, and 12.8% respectively [9]