Shannon Semi(SZ:300475) ZHONGTAI SECURITIES·2024-10-28 10:43Investment Rating - The investment rating for the company is "Buy" (maintained) [1][2] Core Views - The company has shown significant revenue growth, with a projected increase in revenue from 11,268 million in 2023 to 30,523 million by 2026, reflecting a compound annual growth rate (CAGR) of approximately 50% [1] - The net profit attributable to the parent company is expected to grow from 377 million in 2023 to 647 million by 2026, indicating a strong growth trajectory [1] - The company is positioned to benefit from the increasing demand for advanced storage and computing solutions, particularly in the context of the AI wave [2] - The company has successfully entered the enterprise storage module market, which is expected to open up long-term growth opportunities [2] Financial Projections - Revenue projections are as follows: 2022A: 13,772 million, 2023A: 11,268 million, 2024E: 24,775 million, 2025E: 27,748 million, 2026E: 30,523 million, with a notable growth rate of 120% in 2024 [1][6] - Net profit projections are: 2022A: 314 million, 2023A: 377 million, 2024E: 509 million, 2025E: 590 million, 2026E: 647 million, with a growth rate of 35% in 2024 [1][6] - Earnings per share (EPS) are projected to increase from 0.83 in 2023 to 1.41 in 2026 [1][6] Market Position and Strategy - The company is the largest domestic agent for Hynix storage and has recently become a distributor for AMD products, enhancing its market position in advanced computing and storage solutions [2] - The company has a strong customer base that includes major internet and server clients, positioning it well to capitalize on the growing demand for AI hardware [2] - The company has completed the R&D and trial production of enterprise-level DDR4, DDR5, and Gen4 eSSD, which are expected to meet the growing domestic demand for storage solutions [2]