LCXX(SZ:000977) Minsheng Securities·2025-11-02 12:48Investment Rating - The report maintains a "Recommended" rating for the company [4] Core Insights - The company achieved a revenue of 120.67 billion yuan in the first three quarters of 2025, representing a year-on-year growth of 44.85%. The net profit attributable to shareholders was 1.48 billion yuan, up 15.35% year-on-year [1] - Despite a high base in Q3 2024, the company's performance remained resilient, with Q3 2025 revenue at 40.48 billion yuan, a slight decline of 1.43% year-on-year [1][2] - Forward-looking indicators such as inventory and contract liabilities show optimistic trends, indicating sustained demand in the computing power sector [2] - The company launched innovative AI servers, positioning itself to lead in the AI era and enhance its ecosystem through partnerships [3] Summary by Sections Financial Performance - In Q3 2025, the company reported a net profit of 683 million yuan, down 1.99% year-on-year, and a non-recurring net profit of 662 million yuan, down 9.72% year-on-year [1] - For the first three quarters of 2025, the company maintained a robust expense control with sales, management, and R&D expenses showing varied changes [2] Market Position and Future Outlook - The company’s inventory reached 57.65 billion yuan, up 50% year-on-year, and contract liabilities were 31.55 billion yuan, up nearly 1083%, indicating strong future demand [2] - The company is expected to achieve net profits of 2.88 billion yuan, 3.56 billion yuan, and 4.26 billion yuan for the years 2025, 2026, and 2027 respectively, with corresponding PE ratios of 33, 27, and 23 [3][7]