Hygon Information Technology (688041) 天风证券·2024-11-05 11:16Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 124.45 yuan [4] Core Views - The company's Q3 revenue and net profit showed significant growth, with Q3 revenue reaching 2.374 billion yuan, a year-on-year increase of 78.33%, and Q3 net profit attributable to the parent company reaching 672 million yuan, a year-on-year increase of 199.90% [1] - The company's gross margin reached a historical high of 69.13% in Q3, driven by an increase in the proportion of high-end product sales [2] - The company's inventory has grown for four consecutive quarters, reaching 3.896 billion yuan at the end of Q3, indicating strong downstream demand and potential for future revenue growth [2] - The company's CPU and DCU products are expected to benefit from the dual drivers of AI and domestic substitution, with significant growth potential by 2025 [3] Financial Performance - The company achieved revenue of 6.137 billion yuan in the first three quarters of 2024, a year-on-year increase of 55.64%, and net profit attributable to the parent company of 1.526 billion yuan, a year-on-year increase of 69.22% [1] - The company's R&D expense ratio in Q3 was 28.76%, a decrease of 4.47 percentage points compared to the same period last year, reflecting improved management efficiency [1] - The company's gross margin for the first three quarters of 2024 was 65.63%, an increase of 5 percentage points year-on-year [2] Industry and Product Analysis - The company's CPU products are compatible with the x86 instruction set and mainstream operating systems, widely used in industries such as telecommunications, finance, and education [3] - The company's DCU products, based on the GPGPU architecture, support full-precision model training and are compatible with major AI models, positioning the company well in the AI computing power expansion trend [3] Financial Forecasts - The report raises the company's revenue forecasts for 2024-2026 to 8.930 billion yuan, 12.779 billion yuan, and 16.606 billion yuan, respectively, and net profit forecasts to 1.952 billion yuan, 2.954 billion yuan, and 3.797 billion yuan, respectively [3] - The company's EPS is expected to grow from 0.84 yuan in 2024 to 1.63 yuan in 2026 [5] Valuation Metrics - The company's P/E ratio is expected to decrease from 147.48 in 2024 to 75.83 in 2026, while the P/B ratio is expected to decrease from 14.08 in 2024 to 11.15 in 2026 [5] - The company's EV/EBITDA ratio is forecasted to decline from 87.62 in 2024 to 50.32 in 2026 [5]