LCXX(SZ:000977) Minsheng Securities·2025-08-28 14:50Investment Rating - The report maintains a "Recommended" rating for the company [4] Core Views - The company achieved a revenue of 80.192 billion yuan in H1 2025, representing a year-on-year growth of 90.05%, with a net profit attributable to shareholders of 799 million yuan, up 34.87% year-on-year [1] - In Q2 2025, the company continued to show high growth, with revenue reaching 33.334 billion yuan, a 36.30% increase year-on-year, and a net profit of 336 million yuan, growing 15.63% year-on-year [1] - The company's gross margin significantly improved to 6.1% in Q2 2025, reflecting its focus on profitability [1] - The company has maintained good expense control, with sales, management, and R&D expenses showing a mixed trend, while the overall expense control remains robust [2] - Forward-looking indicators such as inventory and contract liabilities are positive, indicating sustained growth potential for the company [2] - The company remains a leader in the server industry, with a strong market position as evidenced by its rankings in various categories [3] - The projected net profits for 2025, 2026, and 2027 are 3.048 billion yuan, 3.999 billion yuan, and 4.964 billion yuan respectively, with corresponding PE ratios of 33, 25, and 20 [3] Summary by Sections Financial Performance - In H1 2025, the company reported a revenue of 80.192 billion yuan, a 90.05% increase year-on-year, and a net profit of 799 million yuan, up 34.87% year-on-year [1] - Q2 2025 saw revenue of 33.334 billion yuan, a 36.30% increase year-on-year, and a net profit of 336 million yuan, growing 15.63% year-on-year [1] - The gross margin for Q2 2025 was 6.1%, indicating a significant improvement [1] Expense Management - The company maintained good expense control, with sales, management, and R&D expenses showing changes of -9.1%, +15.6%, and +8.8% respectively [2] - Asset impairment losses were recorded at 60 million yuan, with credit impairment losses reaching 430 million yuan, impacting apparent profit levels [2] Growth Indicators - Inventory reached 59.5 billion yuan in H1 2025, a historical high with a year-on-year growth of 87% [2] - Contract liabilities stood at 27.9 billion yuan, a 261% increase year-on-year, also a historical high [2] - Sales cash receipts were 114.6 billion yuan, up 139% year-on-year, indicating strong demand [2] Industry Position - The company is a leading player in the server industry, ranking second globally in server market share and first in China [3] - The company has established deep collaborations with downstream internet companies and upstream chip manufacturers, solidifying its industry position [3]