Shanxi Securities·2024-10-28 04:01Investment Rating - The report maintains an "Accumulate-A" rating for the company, indicating a positive outlook with expected price appreciation relative to the benchmark index [1][3]. Core Insights - The company has established itself as a leading player in the domestic telecommunications server market, with a market share of 23.03% as of May 30, 2024, according to the Communication Industry Network [1]. - The company is focusing on intelligent computing as a long-term strategic direction, providing comprehensive solutions and leveraging its self-developed chips to create differentiated system advantages [1]. - The company reported a revenue of 900.45 billion yuan for the first three quarters of 2024, reflecting a year-on-year increase of 0.73%, while the net profit attributable to shareholders was 79.06 billion yuan, up 0.83% year-on-year [1][2]. Financial Performance Summary - For Q3 2024, the company achieved a revenue of 275.57 billion yuan, a decrease of 3.94% year-on-year and 13.64% quarter-on-quarter [1]. - The gross margin for Q3 2024 was reported at 40.4%, down 4.3 percentage points year-on-year but up 1.4 percentage points quarter-on-quarter [2]. - The company’s operating expenses increased slightly in Q3, with sales, management, and R&D expense ratios at 8.0%, 3.6%, and 21.5%, respectively [2]. Earnings Forecast and Valuation Analysis - The company is projected to achieve net profits of 95.3 billion yuan, 103.0 billion yuan, and 111.5 billion yuan for the years 2024, 2025, and 2026, respectively, with year-on-year growth rates of 2.2%, 8.1%, and 8.2% [3]. - The expected earnings per share (EPS) for 2024, 2025, and 2026 are 1.99 yuan, 2.15 yuan, and 2.33 yuan, respectively, with corresponding price-to-earnings (P/E) ratios of 13.5, 12.5, and 11.6 [3].