LY iTECH(SZ:002600) Orient Securities·2025-04-29 05:53Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 11.40 CNY based on a 30x PE valuation for 2025 [2][5][11]. Core Insights - The company has demonstrated resilience with double-digit growth in both revenue and profit, achieving a revenue of 115 billion CNY in Q1 2025, a year-on-year increase of 17%, and a net profit of 5.7 billion CNY, up 24% [10]. - The company is expanding its global footprint with 58 production and R&D sites across various countries, enhancing its local delivery capabilities and operational resilience [10]. - New business segments, particularly in AI terminals, are rapidly developing, with AI-related revenue expected to exceed 40 billion CNY in 2024, marking a 33% year-on-year growth [10]. Financial Performance Summary - Revenue Forecast: Projected revenues from 2023 to 2027 are 34,124 million CNY, 44,211 million CNY, 52,539 million CNY, 60,520 million CNY, and 69,221 million CNY, respectively, with growth rates of -1.0%, 29.6%, 18.8%, 15.2%, and 14.4% [4][13]. - Net Profit: The net profit attributable to the parent company is forecasted to be 2,051 million CNY, 1,753 million CNY, 2,655 million CNY, 3,589 million CNY, and 4,575 million CNY from 2023 to 2027, with growth rates of 28.5%, -14.5%, 51.4%, 35.2%, and 27.5% [4][13]. - Earnings Per Share (EPS): EPS is expected to rise from 0.29 CNY in 2023 to 0.65 CNY in 2027 [4][13]. - Profit Margins: The gross margin is projected to improve from 19.9% in 2023 to 18.2% in 2027, while the net margin is expected to increase from 6.0% to 6.6% over the same period [4][13].