Sugon(603019) 国盛证券·2024-04-19 05:32Investment Rating - The report maintains a "Buy" rating for the company [2][4] Core Views - The company's 2023 annual results met expectations, with total revenue reaching 14.353 billion yuan, a year-on-year increase of 10.34%, and net profit attributable to shareholders of 1.836 billion yuan, up 18.88% year-on-year [1] - The company's IT equipment segment achieved revenue of 12.78 billion yuan, a year-on-year increase of 11.63%, with a gross margin of 21.88% [1] - The company is driving growth through full-stack technology independence and AI transformation, supporting major AI models like "Zidong Tai Chu" and "Wu Dao 2.0" [1] - The company holds multiple high-quality assets, including Haiguang Information, Sugon Cloud, and Zhongke Xingtu, which have strong growth potential and are expected to drive high growth in the coming years [2] Financial Performance - The company's revenue for 2023 was 14.353 billion yuan, with a net profit attributable to shareholders of 1.836 billion yuan [1] - Revenue from IT equipment was 12.78 billion yuan, while software development, system integration, and technical services contributed 1.567 billion yuan [1] - Sales, management, and R&D expenses were 751 million yuan, 294 million yuan, and 1.316 billion yuan, respectively, with R&D expenses increasing by 19.07% year-on-year [1] - The company's EPS for 2023 was 1.25 yuan, with a P/E ratio of 38.3x and a P/B ratio of 3.8x [3][4] Industry and Market Context - The AI revolution has led to a surge in computing power demand, with China's total computing power expected to exceed 300 EFLOPS by 2025, with intelligent computing power accounting for 35% [1] - The company is a key player in the national supercomputing internet construction, providing high-performance computing resources for AI industrialization [1] - The company is well-positioned to benefit from government and enterprise initiatives to accelerate the development of intelligent computing centers [1] Future Projections - The company's revenue is projected to reach 16.01 billion yuan in 2024, 17.702 billion yuan in 2025, and 19.488 billion yuan in 2026 [2] - Net profit attributable to shareholders is expected to grow to 2.189 billion yuan in 2024, 2.579 billion yuan in 2025, and 3.015 billion yuan in 2026 [2] - The company's EPS is forecasted to increase to 1.50 yuan in 2024, 1.76 yuan in 2025, and 2.06 yuan in 2026 [3] Financial Ratios and Metrics - The company's gross margin for 2023 was 28.7%, with a net margin of 12.8% [10] - ROE for 2023 was 9.6%, expected to increase to 10.7% in 2024 and 11.7% by 2026 [3][10] - The company's asset-liability ratio was 38.4% in 2023, with a current ratio of 3.0 and a quick ratio of 2.0 [10]