LCXX(SZ:000977) Western Securities·2025-09-03 05:36Investment Rating - The investment rating for the company is "Buy" [3][6]. Core Views - The company has shown continuous revenue growth, with a 91% year-over-year increase in revenue for the first half of 2025, reaching 801.92 billion yuan, and a 34% increase in net profit attributable to shareholders, amounting to 7.99 billion yuan [1][3]. - The company maintains strong relationships with key clients in the server industry and has significant technological reserves in the AI server sector, indicating a high degree of certainty and elasticity in growth due to increased investments in computing infrastructure by downstream customers [2][3]. Summary by Relevant Sections Performance Summary - In Q2 2025, the company achieved a revenue of 333.34 billion yuan, reflecting a 36% year-over-year growth, and a net profit of 3.36 billion yuan, which is a 16% increase year-over-year [1][6]. - The gross margin for the first half of 2025 was 4.55%, a decrease of 3.20 percentage points year-over-year, while the net margin was 1.00%, down by 0.38 percentage points year-over-year [1]. Demand Indicators - As of the end of Q2 2025, the company's contract liabilities reached 278.52 billion yuan, an increase of 116.56 billion yuan from Q1 2025, and inventory stood at 595.22 billion yuan, up by 136.40 billion yuan from Q1 2025 [2]. - Prepayments at the end of Q2 2025 were 25.48 billion yuan, an increase of 4.81 billion yuan from Q1 2025, indicating strong downstream demand [2]. Financial Projections - The company is projected to achieve net profits of 26.38 billion yuan, 31.85 billion yuan, and 46.18 billion yuan for the years 2025, 2026, and 2027 respectively [3]. - Revenue forecasts for the years 2025 to 2027 are 158.16 billion yuan, 194.41 billion yuan, and 234.14 billion yuan, with growth rates of 37.8%, 22.9%, and 20.4% respectively [4].