Shannon Semi(SZ:300475) Shanxi Securities·2025-05-14 05:42Investment Rating - The report assigns a "Buy-A" rating for the company, indicating a positive outlook for its stock performance in the coming months [1][7]. 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][4]. - Despite the revenue growth, the net profit for 2024 decreased by 30.08% to 264 million yuan, highlighting challenges in profitability [2][5]. - The company's gross margin has been under pressure, with a decline in both 2024 and the first quarter of 2025 due to falling storage prices and inventory impairment [5][6]. - The enterprise-level storage segment is expected to become a new profit growth point, driven by the company's advancements in its proprietary brand "Haipu Storage" and the increasing demand for high-performance storage solutions in data centers [6][7]. Financial Performance Summary - In 2024, the company reported total revenue of 242.71 billion yuan, with a gross margin of 4.3% and a net margin of 1.06% [5][12]. - For 2025, the projected earnings per share (EPS) are expected to be 1.51 yuan, with a corresponding price-to-earnings (P/E) ratio of 21.3 [7][12]. - The company anticipates continued revenue growth, with estimates of 29.439 billion yuan in 2025, 33.897 billion yuan in 2026, and 37.980 billion yuan in 2027, reflecting a compound annual growth rate [12][15].