Sangfor Technologies (SZ:300454) Ping An Securities·2025-03-30 05:34Investment Rating - The report maintains a "Recommended" investment rating for the company [1] Core Views - The company achieved a revenue of 7.52 billion yuan in 2024, a slight decrease of 1.86% year-on-year, with a net profit of 197 million yuan, down 0.49% year-on-year [4][9] - The company is focusing on upgrading its product and service capabilities towards AI, launching self-developed security models and enhancing its cloud computing offerings [10] - The cloud computing segment is becoming a new growth driver, with revenue from this segment increasing by 9.51% year-on-year to 3.384 billion yuan in 2024 [9][10] - The company has a strong market position in the hyper-converged infrastructure market, holding a 17.5% market share in China [10] Financial Performance Summary - Revenue and Profitability: - 2024 revenue: 75.20 billion yuan, down 1.86% YoY - 2024 net profit: 1.97 billion yuan, down 0.49% YoY - Expected revenue growth: 15.4% in 2025, 16.6% in 2026, and 17.0% in 2027 [8][12] - Margins: - Gross margin in 2024: 61.5%, down 3.7 percentage points YoY - Net margin in 2024: 2.6% [9][12] - Earnings Per Share (EPS): - 2024 EPS: 0.47 yuan - Expected EPS: 0.97 yuan in 2025, 1.25 yuan in 2026, and 1.65 yuan in 2027 [8][12] Business Segment Performance - Network Security: - Revenue: 3.629 billion yuan, down 6.75% YoY, accounting for 48.3% of total revenue [9] - Cloud Computing and IT Infrastructure: - Revenue: 3.384 billion yuan, up 9.51% YoY, accounting for 45.0% of total revenue [9] - Basic Network and IoT: - Revenue: 506 million yuan, down 25.53% YoY, accounting for 6.7% of total revenue [9] Market Position and Strategy - The company is recognized as a leading ICT provider in China, particularly in the network security sector [10] - The company is actively expanding its overseas market presence, achieving a 39.1% year-on-year revenue growth in international markets [9][10]