FII(601138) Guoyuan Securities·2024-11-01 12:31Investment Rating - The report maintains a "Buy" rating for the company [2][4] Core Views - The company achieved record high quarterly revenue and profit, driven primarily by AI demand [1] - The company is expected to benefit significantly from the ongoing digital transformation and increasing demand for computing power hardware [2] Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported revenue of 436.37 billion yuan, a year-on-year increase of 32.71%, and a net profit attributable to shareholders of 15.14 billion yuan, up 12.28% year-on-year [1] - In Q3 2024, the company achieved revenue of 170.28 billion yuan, a year-on-year increase of 39.53% and a quarter-on-quarter increase of 15.52% [1] - The net profit for Q3 2024 was 6.40 billion yuan, reflecting a year-on-year growth of 1.24% and a quarter-on-quarter growth of 40.57% [1] Revenue Drivers - The growth in revenue is attributed to the rapid increase in demand for AI servers and high-speed switches, with AI server revenue growing by 228% year-on-year [1] - The cloud computing business benefited from the expanding demand for AI hardware, with a 71% year-on-year revenue increase [1] - The communication and mobile network equipment business also saw significant growth, with data center 400/800G high-speed switches achieving a revenue increase of 128% year-on-year in Q3 2024 [1] Profitability - The overall gross margin showed a slight recovery in Q3 2024, increasing by 0.96 percentage points to 6.97% [1] - The company maintained a low expense ratio of approximately 2.66% for the first three quarters of 2024, down 0.58 percentage points year-on-year [1] Future Outlook - The company is projected to achieve revenues of 555.93 billion yuan, 629.15 billion yuan, and 707.88 billion yuan for the years 2024, 2025, and 2026, respectively [2] - The net profit attributable to shareholders is expected to reach 23.78 billion yuan, 27.73 billion yuan, and 31.32 billion yuan for the same years [2] - Corresponding PE ratios are forecasted to be 20, 17, and 15 times for the years 2024, 2025, and 2026, respectively [2]