FII(601138) Huachuang Securities·2024-11-01 17:39Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expectation to outperform the benchmark index by over 20% in the next six months [10][11]. Core Insights - The company reported a record high revenue of 1,702.82 billion yuan in Q3 2024, with a year-over-year growth of 39.53% and a quarter-over-quarter growth of 15.52% [1][2]. - For the first three quarters of 2024, the company achieved a total revenue of 4,363.73 billion yuan, representing a year-over-year increase of 32.71% [1][2]. - The AI server segment has shown remarkable growth, with revenue increasing by 228% year-over-year, contributing to 45% of total server revenue [2]. - The company is positioned to benefit from the growing demand for AI infrastructure, with expectations that AI will contribute 40% of total cloud computing revenue in 2024 [2]. Financial Performance Summary - The company’s total revenue for 2023 is projected at 476,340 million yuan, with an expected growth rate of 14.3% in 2024 [3]. - The net profit attributable to the parent company is forecasted to be 25,239 million yuan in 2024, reflecting a year-over-year growth of 20% [3]. - Earnings per share (EPS) is expected to rise from 1.06 yuan in 2023 to 1.27 yuan in 2024 [3]. - The company’s price-to-earnings (P/E) ratio is projected to decrease from 22 in 2023 to 19 in 2024, indicating a more attractive valuation [3]. Market Position and Growth Drivers - The company is a leading player in the global server manufacturing market, collaborating with major clients such as Microsoft, AWS, and NVIDIA [2]. - The demand for high-performance computing and AI servers is driving a new growth cycle in the server market, with IDC estimating the global AI server market to reach 24.8 billion USD in 2023, growing at 27% year-over-year [2]. - The networking and industrial internet sectors are also expected to benefit from the digital infrastructure development, with significant growth in the sales of 400/800G switches and SmartNIC/DPU cards [2].