LCXX(000977) 国泰君安·2024-11-05 05:08Investment Rating - The report maintains a "Buy" rating for the company with a target price raised to 74.28 CNY, up from the previous target of 72.58 CNY [3][8]. Core Insights - The company has experienced rapid revenue and profit growth, exceeding market expectations, with Q3 revenue reaching a historical high. The increase in inventory lays a solid foundation for future development, and the company continues to lead the AI computing industry, with potential for exceeding expectations in future growth [2][8]. - For the first three quarters of 2024, the company achieved revenue of 831.26 billion CNY, a year-on-year increase of 72.26%, and a net profit attributable to shareholders of 12.94 billion CNY, up 67.05% year-on-year. The Q3 revenue alone was 410.62 billion CNY, marking a 76.05% year-on-year increase and a 67.90% quarter-on-quarter increase [8][10]. - The company has strengthened its inventory of core components in response to a volatile supply chain environment, with inventory reaching 385.09 billion CNY, a year-on-year increase of 82.50% [8][10]. Financial Summary - The company’s financial forecasts for 2024-2026 indicate expected revenues of 1,030.54 billion CNY, 1,161.66 billion CNY, and 1,252.47 billion CNY, respectively, with net profits of 25.64 billion CNY, 31.08 billion CNY, and 36.43 billion CNY [16][18]. - The earnings per share (EPS) for 2024-2026 are projected to be 1.74 CNY, 2.11 CNY, and 2.47 CNY, reflecting year-on-year growth rates of 43.8%, 21.2%, and 18.8% respectively [8][16]. - The company’s market capitalization is approximately 64.33 billion CNY, with a current price of 46.10 CNY per share [4][3]. Valuation - The report applies a PE valuation method, using comparable companies to derive an average PE of 35.18 for 2025, leading to the target price of 74.28 CNY [20][22]. - The company is positioned as a leading manufacturer in the server industry, with a significant market share in the AI computing sector, which is expected to grow rapidly [8][20].