Precise(SZ:300442) Guotou Securities·2024-03-05 16:00Investment Rating - The investment rating for the company is "Buy - A" with a 6-month target price of 34.76 CNY, compared to the current stock price of 25.82 CNY as of March 5, 2024 [5]. Core Views - The company focuses on the intelligent computing industry, which is a cornerstone for digital economy and AI, and has achieved rapid business growth. The company has a robust capacity with plans for 61 intelligent computing centers and approximately 320,000 cabinets across major regions in China [3][11]. - The company has maintained a high dividend payout, distributing approximately 1.49 billion CNY in cash dividends since its restructuring in 2022, with dividend payout ratios of 68% and 60% in 2022 and Q3 2023 respectively [10]. Summary by Sections Business Overview - The company has been dedicated to building a strong foundation for China's information technology industry and has established itself as a leading provider of intelligent computing center solutions. It has a vision to support the development of the digital economy [3]. Financial Performance - From 2019 to 2022, the company reported revenues of 989 million, 1.394 billion, 2.047 billion, and 2.715 billion CNY, with a compound annual growth rate (CAGR) of 40.02%. Net profits for the same period were 127 million, 265 million, 722 million, and 1.198 billion CNY, with a CAGR of 111.51%. The forecast for 2023 indicates a net profit of 1.75 to 1.85 billion CNY, representing a year-on-year growth of 46.05% to 54.39% [3][11]. Technological Innovation - The company is at the forefront of liquid cooling technology, having delivered the first fully liquid-cooled intelligent computing center in the industry. This center is designed with advanced cooling systems and has established strong partnerships with major telecom operators and internet companies [4][9]. Shareholder Returns - The company emphasizes shareholder returns, having consistently paid dividends and increased capital reserves. It has a history of high dividend payouts, making it one of the few companies in the information technology sector to maintain such a policy [10]. Future Outlook - The company is expected to achieve revenues of 4.183 billion, 5.928 billion, and 8.306 billion CNY in 2023, 2024, and 2025 respectively, with net profits projected at 1.815 billion, 2.393 billion, and 3.515 billion CNY for the same years [11][12].