Great Wall Securities·2025-09-04 06:17Investment Rating - The investment rating for the company is "Buy" with a target of outperforming the industry index by over 15% in the next six months [5][18]. Core Views - The company is fully committed to AI, which has driven stable revenue growth in the first half of 2025. The revenue for the first half of 2025 reached 71.553 billion yuan, a year-on-year increase of 14.51%, while the net profit attributable to shareholders was 5.058 billion yuan, a decrease of 11.77% [2][4]. - The company is focusing on expanding its capabilities in the AI and computing infrastructure sectors, which has led to significant growth in its second curve revenue, particularly in server and storage products, which saw a year-on-year increase of over 200% [2][3]. Financial Summary - Revenue projections for the company are as follows: 2023A at 124.251 billion yuan, 2024A at 121.299 billion yuan, 2025E at 137.068 billion yuan, 2026E at 150.774 billion yuan, and 2027E at 165.098 billion yuan, with growth rates of 1.1%, -2.4%, 13.0%, 10.0%, and 9.5% respectively [1][10]. - The net profit attributable to shareholders is projected to be 9.326 billion yuan in 2023A, 8.425 billion yuan in 2024A, 8.561 billion yuan in 2025E, 9.208 billion yuan in 2026E, and 9.987 billion yuan in 2027E, with growth rates of 15.4%, -9.7%, 1.6%, 7.6%, and 8.5% respectively [1][10]. - The company's return on equity (ROE) is expected to decline slightly from 13.5% in 2023A to 10.7% in 2027E [1][10]. Business Strategy - The company is enhancing its product technology in the connectivity and computing fields, focusing on 5G core networks and AI-driven large-scale computing clusters. It has established over 450 project cases globally in data center products [3][4]. - The company has launched innovative AI terminal products in the first half of 2025, including the Nubia Z70S Ultra and Nubia Flip 2, maintaining a leading position in the mobile internet market [3].