FII(SH:601138) Guoxin Securities·2025-08-13 05:22Investment Rating - The investment rating for the company is "Outperform the Market" [6][4][29] Core Views - The company reported a 35.6% year-on-year increase in revenue and a 38.6% increase in net profit attributable to shareholders for the first half of 2025, driven by the growth in AI server revenue and market share [1][4] - The second quarter of 2025 saw a 35.9% year-on-year increase in revenue and a 51.1% increase in net profit attributable to shareholders, with significant growth in AI server sales [1][4] - The company is expected to benefit from the ongoing capital expenditure increases by major cloud service providers, which will drive demand for AI infrastructure [3][4] Summary by Sections Financial Performance - In the first half of 2025, the company achieved revenue of 360.76 billion yuan (YoY 35.58%) and a net profit of 12.11 billion yuan (YoY 38.61%) [1] - The second quarter of 2025 recorded revenue of 200.34 billion yuan (YoY 35.92%, QoQ 24.89%) and a net profit of 6.88 billion yuan (YoY 51.13%, QoQ 31.58%) [1] - The gross profit margin for the first half of 2025 was 6.60%, showing a slight decrease of 0.13 percentage points year-on-year [1] Business Segments - AI server revenue grew over 60% year-on-year, with overall server revenue increasing by more than 50% in the second quarter [2] - The GB200 series products are ramping up production with improving yield rates, contributing to increasing shipment volumes [2] - The precision components business saw a 17% year-on-year increase in shipment volume, driven by the popularity of certain smartphone models [2] Future Outlook - The company has raised its profit expectations, forecasting revenues of 863.99 billion yuan, 1,241.13 billion yuan, and 1,572.50 billion yuan for 2025, 2026, and 2027 respectively [4][5] - The net profit forecasts for the same years are 31.88 billion yuan, 45.41 billion yuan, and 56.58 billion yuan [4][5] - The current price-to-earnings ratio is projected to be 24.7, 17.4, and 13.9 for the years 2025, 2026, and 2027 respectively [4][5]