Sugon(SH:603019) Guohai Securities·2024-04-18 23:30Investment Rating - The report maintains a "Buy" rating for the company [1][6][8] Core Views - The company achieved a revenue of 14.353 billion yuan in 2023, representing a year-on-year growth of 10.34%, and a net profit attributable to shareholders of 1.836 billion yuan, up 18.88% year-on-year [2][3] - The company has completed its business transformation towards becoming a provider of upstream server solutions, with the top five customers accounting for 85.02% of total revenue in 2023, a historical high [3][4] - The company is focusing on enhancing its research and development capabilities, with R&D investment reaching 2.444 billion yuan in 2023, and is actively participating in the construction of digital infrastructure [4][6] Summary by Sections Financial Performance - In Q4 2023, the company reported a revenue of 6.595 billion yuan, a year-on-year increase of 17.31%, and a net profit of 1.086 billion yuan, up 21.89% year-on-year [2][3] - The company's gross profit margin for 2023 was 26.26%, remaining stable compared to the previous year [3][4] - The operating cash flow for 2023 was 3.510 billion yuan, showing a significant increase of 212.02% year-on-year [2] Market Position and Strategy - The company is positioned as a leader in the domestic intelligent computing market, expected to benefit from the rapid growth of the smart computing market in China [5][6] - The company has invested in several quality assets across the computing ecosystem, enhancing synergies with its core business [6][8] - The report anticipates continued growth in net profit for 2024-2026, with projections of 2.302 billion yuan, 2.869 billion yuan, and 3.528 billion yuan respectively [7][8] Valuation Metrics - The current stock price is 46.75 yuan, with projected P/E ratios of 30, 24, and 19 for 2024, 2025, and 2026 respectively [6][8] - The report highlights a stable return on equity (ROE) forecasted to increase from 10% in 2023 to 14% by 2026 [7][8]