Wangsu Science & Technology (300017) 国海证券·2024-10-27 15:18Investment Rating - Buy (maintained) [2] Core Views - The company's performance has grown rapidly after excluding exchange rate effects, benefiting from the development of "CDN + AI + overseas expansion" [2] - The company's revenue for the first three quarters of 2024 was 3.61 billion yuan, a year-on-year increase of 2.64%, and net profit attributable to the parent company was 429 million yuan, a year-on-year increase of 0.79% [3] - Excluding the impact of exchange gains and losses, the net profit for the first three quarters of 2024 was 458 million yuan, a year-on-year increase of 22.99% [3] - In Q3 2024, the company's revenue was 1.31 billion yuan, a year-on-year increase of 9.99%, and net profit attributable to the parent company was 132 million yuan, a year-on-year decrease of 21.30% [3] - Excluding the impact of exchange gains and losses, the net profit for Q3 2024 was 174 million yuan, a quarter-on-quarter increase of 15.31% [3] Business Development - The company continues to focus on its main business and actively deploys AI computing power, with core businesses in CDN, edge computing, and security, as well as independent businesses in computing cloud, MSP, and data center liquid cooling solutions [4] - The company has completed testing and commercial operation of the first phase of the L20 intelligent computing center project, with a total scale of 10,000 cards [4] - The company is actively implementing an overseas expansion strategy, with a focus on the Southeast Asian market, and has established branches and local teams in Singapore, the US, Japan, and South Korea [4] Financial Performance - The company's gross profit margin for the first three quarters of 2024 was 30.45%, a year-on-year decrease of 0.22 percentage points, and the net profit margin was 12.06%, a year-on-year increase of 0.09 percentage points [5] - In Q3 2024, the company's gross profit margin was 28.21%, a year-on-year decrease of 4.19 percentage points, and the net profit margin was 10.16%, a year-on-year decrease of 3.88 percentage points [5] - The company's sales/management/R&D/financial expense ratios for the first three quarters of 2024 were 7.66%/5.72%/9.27%/-2.00%, respectively, with year-on-year changes of -1.08/-1.04/-0.70/+2.24 percentage points [5] Profit Forecast and Valuation - The company is expected to achieve revenues of 5.06 billion yuan, 5.68 billion yuan, and 6.27 billion yuan in 2024, 2025, and 2026, respectively, with net profits attributable to the parent company of 652 million yuan, 764 million yuan, and 900 million yuan [8] - The corresponding P/E ratios for 2024-2026 are 34.79X, 29.71X, and 25.21X, respectively [8] - The company's ROE is expected to be 7%, 8%, and 9% in 2024, 2025, and 2026, respectively [9] - The company's gross profit margin is expected to remain stable at 32%-33% from 2024 to 2026 [11]