FII(SH:601138) Bank of China Securities·2026-01-30 06:35Investment Rating - The investment rating for the company is "Buy" with a previous rating of "Buy" as well [1] Core Views - The report highlights that the company is expected to achieve steady growth in net profit for 2025, driven by a sustained AI infrastructure boom, maintaining the "Buy" rating [4][7] - The company's cloud computing and communication equipment businesses are anticipated to benefit from the ongoing global AI infrastructure growth, leading to accelerated earnings release [4] Financial Summary - The company is projected to achieve revenues of RMB 909.81 billion, RMB 1,549.51 billion, and RMB 2,164.04 billion for the years 2025, 2026, and 2027 respectively, with corresponding net profits of RMB 35.38 billion, RMB 64.46 billion, and RMB 85.60 billion [4][6] - The expected growth rates for revenue are 49.4% in 2025, 70.3% in 2026, and 39.7% in 2027 [6] - The adjusted earnings per share (EPS) for 2025, 2026, and 2027 are projected to be RMB 1.78, RMB 3.25, and RMB 4.31 respectively, with significant growth rates of 52.4%, 82.2%, and 32.8% [6][11] - The price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are expected to be 32.3, 17.7, and 13.4 respectively [4][12] Performance Highlights - The company anticipates a net profit of RMB 126-132 billion for Q4 2025, representing a year-on-year growth of 56%-63% [7] - The cloud service provider's server revenue is expected to grow over 1.8 times year-on-year in 2025, with AI server revenue increasing by over 3 times [7] - The company’s high-speed switch business is projected to see a revenue increase of 13 times year-on-year for 2025 [7]