VGT(300476) 太平洋·2024-10-31 13:32Investment Rating - The report maintains a "Buy" rating for the company Shenghong Technology (300476) [1] Core Views - The company's Q3 performance exceeded expectations, driven by the growth of AI-related products and the consolidation of MFS softboard business, which enhanced revenue and profit [2][3] - The company is focusing on high-end products, with successful mass production of advanced AI data center products and ongoing technological upgrades for AI servers and optical transmission switches [2] - The increase in the proportion of mid-to-high-end product lines has positively impacted the gross margin, which reached 23.17% in Q3, up 1.48 percentage points from the previous quarter [2] Financial Summary - For the first three quarters of 2024, the company reported revenue of 76.98 billion yuan, a year-on-year increase of 34.02%, and a net profit attributable to shareholders of 7.65 billion yuan, up 30.54% [2] - Q3 2024 revenue was 28.42 billion yuan, representing a 37.07% year-on-year growth, with a net profit of 3.06 billion yuan, up 26.70% [2] - The company forecasts total revenue for 2024-2026 to be 118.29 billion, 155.91 billion, and 174.80 billion yuan, with corresponding year-on-year growth rates of 49.15%, 31.80%, and 12.12% [3] Profitability Forecast - The net profit attributable to shareholders is expected to reach 12.08 billion, 17.25 billion, and 19.69 billion yuan for 2024-2026, with growth rates of 79.97%, 42.81%, and 14.10% respectively [3] - The report indicates that the company will benefit from the explosive demand for AI and increased orders from major automotive electronics clients, leading to a rise in both volume and price of products [2]