Shannon Semi(SZ:300475) Shanxi Securities·2025-05-14 04:25Investment Rating - The report assigns a "Buy-A" rating to the company, indicating a positive outlook for its stock performance in the near term [5]. Core Insights - The company has experienced significant revenue growth, with a 115.40% year-on-year increase in 2024, reaching 24.271 billion yuan, and a remarkable 243.33% growth in the first quarter of 2025, achieving 7.906 billion yuan [2][3]. - Despite the revenue growth, the company's net profit for 2024 decreased by 30.08% to 264 million yuan, primarily due to inventory impairment and declining storage prices impacting profitability [3][10]. - The company is well-positioned to benefit from the increasing demand for enterprise-level storage solutions, particularly in the context of artificial intelligence and data center developments, which are expected to drive future profit growth [4]. Summary by Sections Financial Performance - In 2024, the company reported total revenue of 24.271 billion yuan, a 115.40% increase from the previous year, while the net profit was 264 million yuan, down 30.08% [2][10]. - For the first quarter of 2025, revenue reached 7.906 billion yuan, reflecting a 243.33% year-on-year growth, with a net profit of 17 million yuan, up 18.66% [2][3]. Profitability Metrics - The gross margin for 2024 was 4.3%, a decrease of 1.51 percentage points year-on-year, and the net margin was 1.06%, down 2.27 percentage points [3][10]. - In the first quarter of 2025, the gross margin further declined to 1.98%, a drop of 3.31 percentage points, while the net margin was 0.17%, down 0.29 percentage points [3]. Future Outlook - The company is advancing its proprietary brand "Haipu Storage," with successful development of enterprise-level DDR4, DDR5, and Gen4 eSSD products, which are now in mass production [4]. - The report anticipates that the enterprise storage segment will become a new profit growth point, driven by increased collaboration with clients in data centers and server fields [4]. Valuation and Earnings Forecast - The expected earnings per share (EPS) for 2025, 2026, and 2027 are projected to be 1.51 yuan, 1.87 yuan, and 2.19 yuan, respectively, with corresponding price-to-earnings (P/E) ratios of 21.3, 17.2, and 14.7 [5][10].