Hygon Information Technology (688041) 国海证券·2024-04-14 16:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company achieved a revenue of 6.012 billion yuan in 2023, representing a year-on-year growth of 17.30%, with a net profit attributable to shareholders of 1.263 billion yuan, up 57.17% [4] - The company's gross margin improved to 59.67%, an increase of 7.25 percentage points year-on-year, indicating enhanced profitability [2] - The company continues to invest heavily in R&D, with an expenditure of 2.81 billion yuan in 2023, a 35.93% increase year-on-year, accounting for 46.74% of its operating revenue [2][5] Summary by Sections Financial Performance - In Q4 2023, the company reported a revenue of 2.069 billion yuan, a year-on-year increase of 58.52%, and a net profit of 362 million yuan, up 138.74% [4] - The company’s R&D personnel accounted for 91.68% of its total workforce, emphasizing its focus on innovation [2] Market Position and Trends - The demand for AI computing power is strong, and the general server market is expected to recover, with IDC forecasting a 5.7% growth in x86 server shipments in 2024 [5] - The company is well-positioned in the domestic market, leveraging its understanding of local customer needs to provide secure and controllable products [6][7] Future Outlook - The company’s net profit forecasts for 2024, 2025, and 2026 are 1.709 billion yuan, 2.298 billion yuan, and 3.062 billion yuan, respectively, with corresponding EPS of 0.74 yuan, 0.99 yuan, and 1.32 yuan [8] - The report anticipates continued growth driven by the development of its CPU and DCU products, benefiting from the trends in the AI and domestic innovation markets [5][6]