Guoxin Securities·2025-10-09 07:04Investment Rating - The report maintains an "Outperform the Market" rating for the company [5]. Core Views - The company is positioned to become a leader in domestic computing power and connectivity, actively participating in the construction of intelligent computing infrastructure [1][2]. - The company has a comprehensive product range covering wireless, wired, cloud computing, terminal products, and professional communication services, serving over 160 countries and regions [1][13]. - The revenue from the second curve, represented by computing power and terminal products, has nearly doubled year-on-year, accounting for over 35% of total revenue [1][21]. - The company has achieved a historical high in revenue of 71.55 billion yuan in the first half of 2025, with a year-on-year growth of 15% [1][32]. Summary by Sections Financial Performance - The company reported a net profit of 5.058 billion yuan in the first half of 2025, a decrease of 11.5% year-on-year [1]. - Revenue projections for 2025-2027 are estimated at 141.9 billion, 155.6 billion, and 171.8 billion yuan, respectively, with corresponding net profits of 8.82 billion, 9.986 billion, and 11.883 billion yuan [4][3]. - The company's A-share PE ratios for 2025-2027 are projected to be 25, 22, and 18 times, respectively [3]. Market Position and Strategy - The company leads the telecommunications server market with a 21% market share among telecom operators [2]. - The company is focusing on the development of 5G-A networks and has received satellite communication licenses, preparing for future 6G networks [2][9]. - The company has established deep partnerships with major cloud service providers like ByteDance, Alibaba, and Baidu for customized server solutions [2][70]. Innovation and R&D - The company has been investing in self-developed chips for nearly 30 years and is one of the few domestic companies to mass-produce 7nm and 5nm chips [3]. - The company is committed to autonomous innovation, forming competitive data center interconnection solutions [3][21]. - The company has a strong focus on R&D, with continuous investment in technology to enhance its product offerings [40]. Industry Outlook - The global server market is expected to reach $366 billion by 2025, with a year-on-year growth of 44.6% [62]. - The AI server market in China is projected to reach $25.9 billion by 2025, growing at a rate of 36.2% [63]. - Major cloud service providers are significantly increasing their capital expenditures, indicating a robust demand for computing power infrastructure [50][51].