KAIYUAN SECURITIES·2024-10-22 13:39Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has maintained steady performance with double-digit growth in international markets, despite a slight decline in domestic operator business due to investment environment pressures. The forecast for net profit from 2024 to 2026 has been adjusted downwards, but the long-term outlook for operator and government enterprise business remains positive [2][3] - The company is accelerating its transition towards a "connectivity + computing power" model, enhancing its product ecosystem and maintaining a leading position in key wireless and wired markets [3] - The company continues to invest heavily in R&D, with a R&D expense rate of 20.7% in the first three quarters of 2024, focusing on advanced technologies and self-developed chips [4] Financial Summary - For the first three quarters of 2024, the company achieved revenue of 900.45 billion yuan, a year-on-year increase of 0.73%, and a net profit attributable to shareholders of 79.06 billion yuan, up 0.83% year-on-year [2] - The projected net profit for 2024-2026 is 90.52 billion yuan, 99.19 billion yuan, and 112.61 billion yuan respectively, with corresponding P/E ratios of 16.8, 15.3, and 13.5 [2][5] - The company’s revenue for 2024 is expected to be 123.545 billion yuan, reflecting a slight decline of 0.6% year-on-year, while net profit is projected to be 9.052 billion yuan, down 2.9% year-on-year [5] Product and Market Development - The company has launched new products in the 5G-A field and has deepened collaborations with operators for commercial deployment [3] - In the optical transmission sector, the company introduced an 800G OTN pluggable solution capable of 2000 km transmission, and new intelligent optical access products based on 50G PON technology [3] - The company is expanding its AI capabilities with the launch of AI-enabled smartphones and the Nubia brand's international expansion [3]