LCXX(SZ:000977) KAIYUAN SECURITIES·2025-10-31 14:42Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company is a leader in AI servers and is expected to benefit from the increasing demand for AI computing power, maintaining a "Buy" rating [4] - For the years 2025-2026, the forecasted net profit attributable to the parent company is 30.61 billion and 37.04 billion yuan, with a new forecast for 2027 at 44.60 billion yuan. The corresponding EPS is projected to be 2.08, 2.52, and 3.03 yuan per share, with current price-to-earnings ratios of 33.4, 27.6, and 22.9 times [4] Financial Performance Summary - In the first three quarters of 2025, the company achieved operating revenue of 1206.69 billion yuan, a year-on-year increase of 44.85%, and a net profit attributable to the parent company of 14.82 billion yuan, a year-on-year increase of 15.35%. However, Q3 saw a slight decline in revenue and net profit due to the impact of the H20 chip vulnerability [5] - The gross profit margin for Q3 was 5.62%, unchanged year-on-year. The sales expense ratio decreased by 0.05 percentage points to 0.76%, while R&D and management expense ratios increased slightly [6] - As of the end of Q3, inventory was 576.54 billion yuan, up 41.89% from the beginning of the year, and contract liabilities were 315.45 billion yuan, up 178.99%, indicating sustained high demand in the downstream market [6] Market Demand and Capital Expenditure - Internet companies are experiencing continued high growth in capital expenditures, with Alibaba Cloud reporting a revenue of 333.98 billion yuan in Q2, a 26% increase, and capital expenditures reaching 386.76 billion yuan, up 220% year-on-year. The company plans to advance 3800 billion yuan in capital expenditures over the next three years [7]