Hygon Information Technology (688041) CAITONG SECURITIES·2024-10-11 03:23Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company is expected to achieve a revenue of 5.836 to 6.358 billion yuan in Q1-Q3 2024, representing a year-on-year growth of 48.02% to 61.26%. The net profit attributable to shareholders is projected to be between 1.408 to 1.586 billion yuan, with a year-on-year increase of 56.16% to 75.90% [4][5] - The Q3 performance is expected to show a significant acceleration, with revenue growth estimated at 55.75% to 94.97% and net profit growth at 147.77% to 227.23% [4] - The company has seen a substantial increase in prepayments and inventory, indicating strong future revenue growth potential [4] Summary by Sections Financial Performance - In Q1 and Q2 of 2024, the company reported revenue growth rates of 37.09% and 49.67%, respectively. The Q3 revenue growth is expected to be significantly higher [4] - The company's prepayments increased from 937 million yuan in Q4 2022 to 3.09 billion yuan in Q2 2024, and inventory rose from 1.095 billion yuan to 2.455 billion yuan in the same period [4][5] Revenue and Profit Forecast - Revenue projections for 2024 to 2026 are 9.085 billion yuan, 13.536 billion yuan, and 20.010 billion yuan, respectively. Net profit forecasts are 2.008 billion yuan, 3.061 billion yuan, and 4.585 billion yuan for the same years [5][7] - The company is expected to maintain a high PE ratio of 152x in 2024, decreasing to 66x by 2026 [4][5] Market Position and Strategy - The company is recognized as a leader in X86 and GPGPU technology architecture in China, with a strong focus on R&D to accelerate technological iteration [4] - The demand for the company's new CPU and DCU products is robust, contributing to the anticipated rapid growth in performance [4]