SINOLINK SECURITIES·2024-10-22 09:12Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a revenue of 90.045 billion RMB for the first three quarters of 2024, a year-on-year increase of 0.73%, and a net profit attributable to shareholders of 7.906 billion RMB, up 0.83% year-on-year [1] - In Q3 alone, the company experienced a revenue decline of 3.94% year-on-year, with a net profit decrease of 8.23% [1] - The operator business is under short-term pressure due to a decline in capital expenditure, but the net profit margin remains stable [1] - The company is actively transitioning from a "connectivity" model to a "connectivity + computing power" model, aiming to expand market space [1] - The company has introduced the OLink open exchange interconnection standard and developed high-capacity switching chips to support AI server capabilities [1] - The terminal business is rapidly advancing, with the company leading the cloud terminal market in China [1] Summary by Sections Financial Performance - For 2024-2026, the company is projected to achieve revenues of 130.8 billion, 140 billion, and 151.3 billion RMB, respectively, with net profits of 10.3 billion, 11.3 billion, and 12.7 billion RMB [1][4] - The corresponding P/E ratios are expected to be 15, 13, and 12 times [1] Business Strategy - The company is focusing on integrating edge computing solutions to meet the rapid deployment needs of small and medium enterprises [1] - The Nebula large model architecture supports collaborative deployment of cloud and edge computing, offering a range of intelligent edge hardware [1] Market Position - The company has been recognized as the market leader in cloud terminal shipments and VDI solution shipments in China [1] - Recent product launches include advanced AI terminals and cloud computer terminals compatible with China Mobile's capabilities [1]