Sugon(SH:603019) Guohai Securities·2024-10-29 12:50Investment Rating - The investment rating for the company is "Buy" (maintained) [1][5][8] Core Views - The company has demonstrated steady performance in the first three quarters of 2024, with revenue reaching 8.041 billion yuan, a year-on-year increase of 3.65%, and a net profit attributable to shareholders of 770 million yuan, up 2.57% year-on-year [2][5] - The company is expected to benefit from its transformation towards upstream server operations, enhancing its competitive edge in high-value business segments [2][3] - The company’s R&D investment has increased by 14.49% year-on-year, focusing on high-end computing, storage, and data center products, which is expected to strengthen its core competitiveness [2][3] Financial Performance Summary - For Q3 2024, the company reported revenue of 2.329 billion yuan, a decrease of 1.19% year-on-year, while the net profit attributable to shareholders was 206 million yuan, an increase of 0.41% year-on-year [2] - The gross profit margin for the first three quarters of 2024 was 26.81%, an increase of 0.93 percentage points year-on-year, while the net profit margin was 10.01%, a slight decrease of 0.15 percentage points year-on-year [2][5] - The company’s investment income rose significantly by 82.03% year-on-year to 412 million yuan, primarily due to increased net profits from joint ventures [2][5] Earnings Forecast - The company’s revenue is projected to reach 14.784 billion yuan in 2024, with a growth rate of 3%, and net profit attributable to shareholders is expected to be 1.997 billion yuan, reflecting a growth rate of 9% [5][6] - Earnings per share (EPS) are forecasted to be 1.36 yuan in 2024, with a price-to-earnings (P/E) ratio of 39.75 [5][6][8]