FII(601138) 东方证券·2024-11-04 05:11Investment Rating - The report maintains a "Buy" rating for the company with a target price of 34.80 CNY, based on a 29x PE ratio for 2024 [2][4]. Core Insights - The company reported a 40% year-on-year increase in revenue and a 1% increase in net profit attributable to shareholders for Q3. Excluding foreign exchange impacts, net profit grew by 11%. The company has a dividend payout ratio of nearly 55% for 2023, with total cash dividends amounting to 11.52 billion CNY, leading the electronics industry [1][2]. - The cloud computing business is experiencing strong growth, particularly in AI servers, which saw a 228% year-on-year revenue increase. AI servers accounted for 45% of total server revenue in Q1-Q3 2023, with expectations to reach 40% of cloud computing revenue in 2024 [1][2]. - The networking communications segment is focusing on 400/800G switches and SmartNIC/DPU cards, with Q3 revenue for 400/800G switches increasing by 128% year-on-year. The company anticipates significant revenue contributions from these products in the latter half of 2024 [1][2]. - Concerns regarding the mobile structural components business are deemed excessive, as the company expects double-digit growth in this segment in H1 2024, driven by AI and smartphone demand [1]. Financial Summary - The company’s revenue for 2023 is projected at 476.34 billion CNY, with a 7% decline from 2022. However, revenue is expected to rebound with a 27% growth in 2024, reaching 606.34 billion CNY [3][8]. - Net profit attributable to shareholders is forecasted to grow from 21.04 billion CNY in 2023 to 23.75 billion CNY in 2024, reflecting a 13% increase [3][8]. - Earnings per share (EPS) are expected to rise from 1.06 CNY in 2023 to 1.20 CNY in 2024, with further increases projected in subsequent years [3][8].