EBSCN·2024-10-24 00:09Investment Rating - The report maintains a "Buy" rating for the company, citing a positive outlook in the context of digital China construction and increasing AI computing power demand [2][7]. Core Insights - The company reported a revenue of 90.045 billion yuan 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 yuan, up 0.83% year-on-year. However, the net profit excluding non-recurring items decreased by 2.86% [1]. - In Q3 2024, the company's revenue was 27.557 billion yuan, a year-on-year decline of 3.94%, and the net profit attributable to shareholders was 2.174 billion yuan, down 8.23% year-on-year. The gross margin was 40.35%, a decrease of 4.28 percentage points year-on-year [1]. - The decline in revenue and profit is primarily attributed to the pressure on operator business due to reduced capital expenditure from operators [1]. Summary by Sections Revenue and Profitability - The company achieved a revenue of 90.045 billion yuan in the first nine months of 2024, with a slight increase of 0.73% year-on-year. The net profit attributable to shareholders was 7.906 billion yuan, reflecting a growth of 0.83% year-on-year. However, the net profit excluding non-recurring items saw a decline of 2.86% [1]. - For Q3 2024, the revenue was 27.557 billion yuan, down 3.94% year-on-year, and the net profit attributable to shareholders was 2.174 billion yuan, a decrease of 8.23% year-on-year [1]. Market Position and Innovations - The company continues to lead in key products in both wireless and wired markets, ranking second globally in cumulative shipments of 5G base stations and core networks. It has also received industry leader ratings for RAN products, 5G core networks, and 5G optical transmission [1]. - The company is focusing on the commercial deployment of 5G-A and has collaborated with operators to innovate across various scenarios, enhancing new business vitality in ground, low-altitude, and high-altitude sectors [1]. Strategic Focus - The company has identified intelligent computing as a long-term strategic focus, offering comprehensive intelligent computing solutions. It has launched an open architecture AI server compatible with mainstream GPUs and is advancing research in high-capacity switching chips and intelligent task distribution [1]. - The company emphasizes the integration of infrastructure delivery and engineering services for large model training and applications, promoting the establishment of intelligent computing infrastructure projects across various regions and industries [1].