FII(SH:601138) Bank of China Securities·2026-01-30 07:20Investment Rating - The investment rating for the company is "Buy" with a market price of RMB 57.60 and a sector rating of "Outperform" [1] Core Views - The report highlights that the company is expected to achieve robust profit growth in 2025, driven by the ongoing AI infrastructure boom, and maintains a "Buy" rating [4][7] - The company is projected to benefit from the sustained growth in global AI infrastructure, with its cloud computing and telecommunications businesses expected to continue thriving [4] Financial Projections - The company is estimated 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 projected growth rates for revenue are 49.4% in 2025, 70.3% in 2026, and 39.7% in 2027 [6][11] - The adjusted earnings per share (EPS) for 2025, 2026, and 2027 are expected to be RMB 1.78, RMB 3.25, and RMB 4.31 respectively, reflecting significant growth [6][11] Performance Highlights - The company anticipates a net profit of RMB 126-132 billion for Q4 2025, representing a year-on-year increase of 56%-63% [7] - The cloud services segment is expected to see a revenue increase of over 1.8 times in 2025, with AI server revenues projected to grow more than threefold [7] - The company’s high-speed switch business is also expected to experience substantial growth, with a projected revenue increase of 13 times for 800G and above switches in 2025 [7] Valuation Metrics - The price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are projected to be 32.3, 17.7, and 13.4 respectively [4][6] - The price-to-book (P/B) ratios for the same years are expected to be 6.8, 5.8, and 4.7 [6][12] - The company is also projected to maintain a healthy dividend yield, with expected dividends of RMB 1.0, RMB 1.7, and RMB 2.0 for 2025, 2026, and 2027 respectively [6][12]