LCXX(000977) 民生证券·2025-04-01 14:28Investment Rating - The report maintains a "Recommended" rating for the company, indicating potential for valuation improvement based on its leading position in the server market and ongoing investments in AI computing [4]. Core Insights - The company achieved significant revenue growth, surpassing 100 billion yuan, with a total revenue of 114.77 billion yuan in 2024, representing a year-on-year increase of 74.24%. The net profit attributable to shareholders was 2.29 billion yuan, up 28.55% year-on-year [1][4]. - In Q4 2024, the company reported a revenue of 31.64 billion yuan, a 78.06% increase year-on-year, while the net profit was 999.7 million yuan, showing a minimal growth of 0.13% [1]. - The company is experiencing high demand in the domestic computing power sector, as evidenced by a 113% increase in inventory to 40.63 billion yuan and a rise in contract liabilities to 11.31 billion yuan from 1.91 billion yuan year-on-year [2]. - The company continues to hold a leading position in the industry, ranking second globally in server market share and first in China, while also making significant advancements in AI technology [3]. Financial Summary - The company forecasts net profits of 3.06 billion yuan, 4.15 billion yuan, and 5.41 billion yuan for 2025, 2026, and 2027, respectively, with corresponding PE ratios of 26, 19, and 14 [4][7]. - Revenue projections for the next three years are 150.82 billion yuan, 183.45 billion yuan, and 215.79 billion yuan, with growth rates of 31.4%, 21.6%, and 17.6% [7][8]. - The company’s gross margin is expected to improve gradually, with a projected gross margin of 7.55% by 2027 [8].