FII(601138) 东方证券·2024-03-16 16:00Investment Rating - The report maintains a "Buy" rating for the company [1][2]. Core Insights - The company benefited from the AI trend, with 2023 revenue reaching 476.3 billion yuan, a 5% increase in net profit to 21 billion yuan, and a 10% increase in non-net profit to 20.2 billion yuan. Operating cash flow surged by 180% to 43.1 billion yuan, more than double the net profit, indicating high profitability quality [1]. - The AI cloud computing business showed strong competitiveness, generating 194.3 billion yuan in revenue with a gross margin increase of 1.12 percentage points to 5.08%, marking the first time it surpassed 5% since the company went public. The share of cloud service business rose from over 50% in 2022 to nearly 50% in 2023, with AI servers accounting for about 30% [1]. - The telecommunications and mobile network equipment business also benefited from the AI trend, with 2023 revenue of 279 billion yuan and a gross margin increase of 0.55 percentage points to 9.80%. The demand for high-speed switches and routers grew in double digits, and the company achieved mass production of 400G switches [1]. - The industrial internet AI technology was introduced, with 2023 revenue reaching 1.646 billion yuan, adding three world-class lighthouse factories, and supporting a total of nine lighthouse factories [1]. Financial Summary - The company’s revenue for 2023 was 476.3 billion yuan, with a year-on-year decline of 6.9%. The projected revenue for 2024 is 520.6 billion yuan, reflecting a 9.3% growth [3]. - The net profit attributable to the parent company for 2023 was 21 billion yuan, with a year-on-year growth of 4.8%. The forecast for 2024 is 25.3 billion yuan, indicating a growth of 20.1% [3]. - The earnings per share for 2023 was 1.06 yuan, with projections of 1.27 yuan for 2024, 1.54 yuan for 2025, and 1.80 yuan for 2026 [2][3].