Shannon Semi(300475) 光大证券·2025-03-04 08:35Investment Rating - The investment rating for the company is upgraded to "Buy" [3][5]. Core Views - The company, Shannon Chip Creation, is a leading distributor of electronic components in China, with capabilities in data storage, main control chips, and modules, serving various sectors including cloud computing, mobile devices, and IoT [1][2]. - The company is expected to benefit significantly from Alibaba's increased capital expenditure on AI infrastructure, which is projected to exceed the total investment of the past decade over the next three years [1][2]. - The company's self-developed enterprise-level storage products are progressing rapidly, with successful R&D and production of SSD storage products aimed at the domestic market [2][3]. Financial Summary - The company's projected net profits for 2024, 2025, and 2026 are estimated at 484 million, 605 million, and 703 million yuan respectively, reflecting increases of 28.04%, 25.16%, and 16.09% [3][4]. - Revenue is expected to grow significantly, with estimates of 20.664 billion yuan in 2024, 24.619 billion yuan in 2025, and 28.110 billion yuan in 2026, indicating growth rates of 83.39%, 19.14%, and 14.18% respectively [4][9]. - The current market valuation corresponds to a price-to-earnings (P/E) ratio of 34 for 2024, 27 for 2025, and 23 for 2026 [3][4].