Hygon Information Technology (688041) Minsheng Securities·2025-01-15 07:47Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook based on expected growth in integrated circuit business driven by downstream demand [4][6]. Core Insights - The company is projected to achieve a revenue of 8.983 billion to 9.53 billion yuan in 2024, representing a year-on-year growth of 45.04% to 58.52%, and a net profit of 1.81 billion to 2.01 billion yuan, reflecting a growth of 43.3% to 59.1% [1][4]. - Continuous high-intensity R&D investment is enhancing the company's core technology autonomy, with expected R&D expenditure of 3.23 billion to 3.66 billion yuan in 2024, a year-on-year increase of 14.96% to 30.26% [2]. - The rapid iteration of CPU and DPU products is improving the company's market position, supporting the construction of data centers and computational platforms, and facilitating the large-scale application of AI across various sectors [3]. Summary by Sections Revenue and Profit Forecast - The company anticipates a revenue increase from 6.012 billion yuan in 2023 to 8.983 billion yuan in 2024, with a growth rate of 49.4% [5][9]. - Net profit is expected to rise from 1.263 billion yuan in 2023 to 1.952 billion yuan in 2024, with a growth rate of 54.5% [5][9]. R&D and Technology Development - The company has a strong focus on R&D, with 1,855 R&D personnel making up 91.07% of the total workforce, and has accumulated numerous patents and intellectual property rights [2]. - The development of a complete software stack compatible with major deep learning frameworks is enhancing the company's product offerings [3]. Financial Metrics and Valuation - The projected PE ratios for 2024, 2025, and 2026 are 172, 122, and 90 respectively, indicating a decreasing valuation multiple as earnings grow [5][9]. - The company is expected to maintain a healthy gross margin, with projections of 62.42% in 2024 and 63.42% in 2025 [9].