FII(601138) SINOLINK SECURITIES·2024-10-31 03:45Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [1][8]. Core Insights - The company reported a revenue of 436.37 billion RMB for the first three quarters of 2024, a year-on-year increase of 32.71%, and a net profit attributable to shareholders of 15.14 billion RMB, up 12.28% year-on-year [1]. - The rapid growth in performance is driven by increased investments in AI by North American manufacturers, leading to a 71% year-on-year growth in the cloud computing business and a 228% increase in AI server revenue [1]. - The company has established strong partnerships with major global server brands and cloud service providers, enhancing its competitive edge in the AI supply chain [1]. Summary by Sections Company Overview - The company achieved a revenue of 436.37 billion RMB in the first three quarters of 2024, with a net profit of 15.14 billion RMB [1]. - Q3 alone saw a revenue of 170.28 billion RMB, marking a 39.53% increase year-on-year, and a net profit of 6.40 billion RMB, a 1.24% increase [1]. Business Analysis - The AI development has significantly boosted the company's performance, with AI server revenue constituting 45% of total server revenue in Q3 [1]. - The company is one of the few in the industry capable of providing complete solutions, with a diversified global production capacity [1]. - The 800G switch business is expected to see large-scale shipments in Q4, contributing positively to revenue and profit [1]. Financial Forecast - Projected revenues for 2024-2026 are 567.5 billion RMB, 683 billion RMB, and 777.3 billion RMB, respectively, with net profits of 25.4 billion RMB, 31.4 billion RMB, and 36.4 billion RMB [1]. - Corresponding P/E ratios are expected to be 19, 16, and 14 times for the respective years [1].