Shenwan Hongyuan Securities·2025-09-25 12:33Investment Rating - The report maintains a "Buy" rating for the company, with a target price of $228 per share, indicating a potential upside of 29% from the current price [4]. Core Insights - The company is positioning itself as a "full-stack AI service provider," aiming to become one of the few global super AI cloud platforms. It plans to invest 380 billion RMB in AI infrastructure over the next three years, significantly increasing its computational power [4]. - The report highlights the rapid growth in demand for AI infrastructure, with token consumption doubling every two to three months. The global investment in AI is expected to exceed $4 trillion over the next five years [4]. - The company has launched several advanced AI models, with its flagship model Qwen3-Max ranking among the top three globally. The report notes that the company leads the enterprise-level AI model market in China [4]. Financial Data and Earnings Forecast - Revenue projections for FY24 to FY28 are as follows: 941,168 million RMB, 996,347 million RMB, 1,044,735 million RMB, 1,142,224 million RMB, and 1,228,165 million RMB, respectively, with growth rates of 8.3%, 5.9%, 4.9%, 9.3%, and 7.5% [3][5]. - Non-GAAP net profit estimates are projected at 158,359 million RMB for FY24, remaining relatively stable at 158,393 million RMB for FY25, and then declining to 125,474 million RMB in FY26 before recovering to 155,319 million RMB in FY27 and 178,793 million RMB in FY28 [3][5]. - The report anticipates an adjusted EBITDA of 191,668 million RMB for FY24, increasing to 226,628 million RMB by FY28 [5].