FII(SH:601138) ZHONGTAI SECURITIES·2026-03-16 09:44Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative performance increase of over 15% against the benchmark index within the next 6 to 12 months [10]. Core Views - The company reported a strong performance in 2025, with revenue reaching 902.89 billion yuan, a year-on-year increase of 48.2%, and a net profit of 35.29 billion yuan, up 52.0% year-on-year [6][7]. - The company is expected to continue its growth trajectory, with projected revenues of 1,558.85 billion yuan in 2026, representing a 73% year-on-year growth [4]. - The AI server and switch business is anticipated to drive significant revenue growth, with cloud computing revenue increasing by 88.7% year-on-year in 2025 [7]. - The company is focusing on vertical integration in the cloud computing sector, which is expected to enhance profitability [7]. Financial Summary - For 2024, the company forecasts revenue of 609.14 billion yuan, with a growth rate of 28% year-on-year, and a net profit of 23.22 billion yuan, reflecting a 10% growth rate [4]. - The projected earnings per share (EPS) for 2026 is 3.36 yuan, with a price-to-earnings (P/E) ratio of 15.6 [4]. - The company’s net profit is expected to reach 66.71 billion yuan in 2026, with a year-on-year growth rate of 89% [4][8]. - The gross margin for 2025 was reported at 7.0%, with a slight decrease of 0.3 percentage points year-on-year [6]. Business Segments - The AI server and switch segments are expected to see continued demand, with the company’s 800G switch revenue increasing by 13 times year-on-year [7]. - The company is also benefiting from the sales of precision components to major clients, with a double-digit growth in shipments in 2025 [7]. - The company’s cloud computing business is projected to maintain high growth, supported by the increasing demand for AI infrastructure and data center network upgrades [7].