产品结构优化，盈利能力提升

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a revenue of 476.34 billion RMB for 2023, a year-on-year decrease of 6.94%, while the net profit attributable to shareholders was 21.04 billion RMB, an increase of 4.82% year-on-year [1] - The decline in revenue is attributed to short-term pressures, but profitability has significantly improved, with a gross margin of 8.06% and a net profit margin of 4.41%, both showing year-on-year increases [1] - The company is expected to benefit from the growing demand for AI and digital economy solutions, which will drive revenue recovery and continuous profit improvement [1] Summary by Sections Performance Overview - Revenue for 2023 was 476.34 billion RMB, down 6.94% from 2022 - Net profit attributable to shareholders was 21.04 billion RMB, up 4.82% year-on-year - Non-recurring net profit was 20.21 billion RMB, an increase of 9.77% year-on-year [1][4] Business Analysis - Main business segments: Communication network equipment, cloud computing, and industrial internet generated revenues of 279 billion RMB, 194.3 billion RMB, and 1.6 billion RMB, respectively, with declines of 5.8%, 8.5%, and 13.9% year-on-year [1] - Cost improvements led to significant growth in key profit indicators, with operating cash flow increasing by 277.2 billion RMB year-on-year [1] - AI server and high-speed switch sales are experiencing rapid growth, with major clients holding over 75% global market share [1] Profit Forecast and Valuation - Expected net profits for 2024, 2025, and 2026 are projected at 27.31 billion RMB, 32.01 billion RMB, and 36.32 billion RMB, respectively, with corresponding P/E ratios of 18, 15, and 13 [1][4]