CGT GROUP(000066) Soochow Securities·2024-11-03 15:30Investment Rating - The report maintains a "Buy" rating for China Great Wall Technology (000066) [1] Core Views - The company achieved a revenue of 9.6 billion yuan in the first three quarters of 2024, representing a year-on-year growth of 19%. The net profit attributable to shareholders was -688 million yuan, a year-on-year increase of 17% [1] - In Q3 2024, the company reported a revenue of 3.5 billion yuan, a year-on-year increase of 16%. However, the net profit attributable to shareholders decreased by 34% year-on-year to -266 million yuan [1][2] - The company is actively expanding its domestic computing power offerings, launching new products based on various domestic chip manufacturers [3] Summary by Sections Financial Performance - Total revenue for 2022 was 14,027 million yuan, with a decline of 21.15%. For 2023, the revenue is projected at 13,420 million yuan, a decrease of 4.33%. The forecast for 2024 is 17,044 million yuan, indicating a growth of 27% [1][9] - The net profit attributable to shareholders for 2022 was 122.77 million yuan, with a significant decline to -977.25 million yuan in 2023. The forecast for 2024 is 63.13 million yuan, reflecting a recovery with a growth of 106.46% [1][9] - The latest diluted EPS for 2022 was 0.04 yuan, dropping to -0.30 yuan in 2023, with a forecast of 0.02 yuan for 2024 [1][9] Market Developments - In September 2024, the company secured a major IT hardware procurement project, marking a significant win for its Feiteng series servers [2] - The company launched the Great Wall AIGC all-in-one machine in September 2024, aimed at AI applications, showcasing its commitment to advancing domestic computing capabilities [2] Future Outlook - The report anticipates a gradual recovery in the company's performance starting in 2024, with adjusted net profit forecasts of 0.63 billion yuan for 2024 and 2.30 billion yuan for 2025, while projecting 4.01 billion yuan for 2026 [3]