Eazytec(688258) 民生证券·2025-03-02 07:15Investment Rating - The report gives a "Buy" rating for the company, with a target price of 39.10 CNY [4]. Core Insights - The company is a leading player in the firmware sector for computing devices, with significant barriers to entry in both X86 and ARM architectures. The acquisition of Aipuyang Technology enhances its position in the IDE market, allowing it to benefit from trends in domestic substitution and AI computing power development [4][2]. - The company has a strong foothold in the domestic BIOS market, being the only supplier of X86 architecture BIOS and BMC firmware in China, and is well-positioned to capitalize on the growth of AI server sales and domestic substitution trends [2][4]. - The integration of AI capabilities into its IDE product SnapDevelop is expected to significantly enhance coding efficiency and open up long-term growth opportunities [3][4]. Summary by Sections 1. Company Overview - Jiangsu Zhuoyi Information Technology Co., Ltd. specializes in "independent, secure, and controllable" cloud computing business, mastering multi-architecture BIOS and BMC firmware technology. The company has been listed on the Shanghai Stock Exchange since December 2019 [10][11]. 2. Business Performance - The company has shown steady revenue growth, with total revenue increasing from 120 million CNY in 2016 to 320 million CNY in 2023, reflecting a compound annual growth rate (CAGR) of 15.08%. The revenue for the first three quarters of 2024 reached 240 million CNY, a year-on-year increase of 4.53% [15][18]. - The net profit attributable to shareholders increased from 28.62 million CNY in 2016 to 56 million CNY in 2023, with a CAGR of 19.34%. However, a decline of 43% is expected in 2024 due to various factors including reduced investment income and amortization of intangible assets from acquisitions [17][18]. 3. Market Position and Trends - The global AI hardware market is projected to reach 34.7 billion USD by 2026, with a CAGR of 17.3% from 2022 to 2026. The domestic market for AI servers is also expected to grow significantly, with a forecasted shipment of 691,000 units by 2027 [2][34]. - The company is actively investing in the domestic substitution industry chain and has established partnerships with various domestic chip manufacturers, enhancing its competitive edge in the market [2][51]. 4. Financial Projections - The company forecasts net profits of 32 million CNY, 75 million CNY, and 102 million CNY for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings (PE) ratios of 148X, 63X, and 46X [4][5].