GOLDEN SUN SECURITIES·2024-09-23 23:36Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company has demonstrated stable growth amidst global macroeconomic challenges, achieving a revenue of 62.49 billion yuan in the first half of 2024, a year-on-year increase of 2.9%, and a net profit attributable to shareholders of 5.73 billion yuan, up 4.8% year-on-year [1]. - The company is focusing on the "connection + computing power" opportunities in the AI industry, with significant growth in its enterprise business driven by server and storage revenue [2]. - The report anticipates continued steady growth for the company, projecting net profits of 10.33 billion, 11.34 billion, and 12.37 billion yuan for 2024, 2025, and 2026 respectively, with corresponding valuations of 11.2, 10.2, and 9.3 times [2]. Financial Performance Summary - In the first half of 2024, the company's revenue from operator networks was 37.3 billion yuan, down 8.6% year-on-year, while the enterprise business revenue grew by 56.1% to 9.17 billion yuan, and consumer business revenue increased by 14.3% to 10.62 billion yuan [1]. - The overall gross margin for the first half of 2024 was 40.5%, a decrease of 2.75 percentage points year-on-year, influenced by the lower revenue share from the operator business and the rapid growth of the lower-margin enterprise business [1]. - The company has effectively controlled expenses, with R&D, sales, and management costs all decreasing year-on-year, reflecting strong cost management [1]. Future Projections - The company is expected to benefit from its advantages in computing power and connectivity, with the enterprise business growing rapidly and consumer business maintaining its growth trend [2]. - The projected financial metrics for the upcoming years include revenues of 128.96 billion yuan in 2024, 135.82 billion yuan in 2025, and 144.01 billion yuan in 2026, with corresponding net profits of 10.33 billion, 11.34 billion, and 12.37 billion yuan respectively [3][10].