LCXX(SZ:000977) Minsheng Securities·2025-05-05 14:56Investment Rating - The report maintains a "Recommended" rating for the company [3][4]. Core Insights - The company achieved a record high revenue of 46.858 billion yuan in Q1 2025, representing a year-on-year growth of 165.31% and a quarter-on-quarter growth of 48% [1]. - The net profit attributable to shareholders reached 463 million yuan, with a year-on-year increase of 52.78%, while the non-recurring net profit was 427 million yuan, up 80.76% year-on-year [1]. - The company's inventory reached 45.9 billion yuan, a 13% increase quarter-on-quarter, and contract liabilities grew to 16.2 billion yuan, up 43% quarter-on-quarter, indicating strong demand for computing power [1]. - The company continues to demonstrate good cost control, with sales, management, and R&D expenses changing by -3%, +19%, and +4% respectively, despite significant revenue growth [2]. - The gross margin for Q1 2025 was 34.5%, down 4.63 percentage points year-on-year, impacted by uncertainties in the Sino-US trade environment and fluctuations in raw material prices [2]. - The company maintains a leading position in the liquid cooling server market, with a market share of 35.5% in sales and 34.2% in shipment volume for its flagship product [2]. Financial Projections - The projected net profits for the company from 2025 to 2027 are 2.916 billion yuan, 3.806 billion yuan, and 4.706 billion yuan respectively, with corresponding PE ratios of 26, 20, and 16 times [3]. - The company is expected to maintain high growth in AI computing investments, indicating potential for valuation improvement [3].