FII(SH:601138) Huaan Securities·2024-03-14 16:00Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Insights - The company reported a revenue of 476.34 billion yuan for the year 2023, a decrease of 6.94% year-on-year, while the net profit attributable to shareholders was 21.04 billion yuan, an increase of 4.82% year-on-year [3] - The company experienced a quarterly revenue of 147.52 billion yuan in Q4 2023, a decrease of 2.15% year-on-year but an increase of 20.88% quarter-on-quarter [3] - The growth in net profit is attributed to an increase in gross margin, despite a decline in Q4 net profit due to reduced enterprise support funds [3] - The global AI server shipment exceeded 1.25 million units in 2023, a year-on-year increase of over 47%, driven by the demand for AI-related hardware [3] - The company is positioned as a leader in the AI server market, collaborating with major global server brands and cloud service providers [3] - The demand for high-bandwidth from generative AI is driving upgrades in IDC high-speed switches and ISP routers, with the company expected to launch 800G high-speed switches in 2024 [3] - The projected net profits for 2024, 2025, and 2026 are 25.3 billion yuan, 28 billion yuan, and 30.1 billion yuan respectively, with corresponding P/E ratios of 18.13, 16.39, and 15.24 [3][6] Financial Summary - The company achieved a gross margin of 8.06% and a net margin of 4.41% in 2023 [3] - The projected revenue for 2024 is expected to increase by 20% to 571.6 billion yuan, with a net profit growth of 20.2% [6] - The company’s return on equity (ROE) is projected to be 15.2% in 2024, slightly increasing from 15.0% in 2023 [6] - The company’s total assets are projected to grow from 287.7 billion yuan in 2023 to 377.4 billion yuan by 2026 [7]