Hygon Information Technology (688041) ZHONGTAI SECURITIES·2024-10-11 00:30Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 15% compared to the benchmark index within the next 6 to 12 months [4]. Core Views - The company is projected to achieve revenue between 5.836 billion to 6.358 billion yuan for Q1-Q3 2024, representing a year-on-year growth of 48.02% to 61.26%. The expected net profit attributable to the parent company is between 1.408 billion to 1.586 billion yuan, with a year-on-year increase of 56.16% to 75.90% [1][2]. - The company continues to enhance its product performance and R&D progress, maintaining a competitive edge in the high-end processor market. The demand for servers is increasing due to accelerated digital transformation [1][3]. - The report highlights the company's strong market position in the AI CPU and GPU sectors, benefiting from national policy support and the growing demand for technological advantages [1][3]. Financial Summary - Revenue projections for the upcoming years are as follows: - 2023: 6,012 million yuan - 2024E: 8,605 million yuan (43% growth) - 2025E: 11,873 million yuan (38% growth) - 2026E: 15,793 million yuan (33% growth) [1][3]. - Net profit forecasts are: - 2023: 1,263 million yuan - 2024E: 1,712 million yuan (35% growth) - 2025E: 2,364 million yuan (38% growth) - 2026E: 3,091 million yuan (31% growth) [1][3]. - The report indicates a significant increase in cash flow per share, projected to reach 1.33 yuan by 2026 [1][3]. Market Position and Competitive Advantage - The company has established a strong foothold in the domestic x86 market, with a notable increase in project wins and revenue in the intelligent computing sector. The report notes a 32.8% year-on-year growth in the intelligent computing market [1][3]. - The company’s products are noted for their ecological, performance, and security advantages, with ongoing improvements in CPU and DCU performance [1][3].