Sugon(SH:603019) Dongxing Securities·2024-04-19 10:31Investment Rating - The report maintains a "Strong Buy" rating for the company [2][10]. Core Views - The company's performance in 2023 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% [2][3]. - The company is expected to benefit from the ongoing construction of computing power infrastructure and the domestic substitution trend in the computing industry [4][10]. Summary by Sections Financial Performance - In Q4 2023, the company achieved total revenue of 6.595 billion yuan, a year-on-year growth of 17.31%, and net profit of 1.086 billion yuan, up 21.89% [2][3]. - The company’s R&D investment reached 2.444 billion yuan, reflecting its commitment to enhancing technological advantages and product capabilities [3][4]. Market Opportunities - The company is positioned to capitalize on the high demand for computing power driven by the development of large model technologies and applications [4][10]. - The liquid cooling data center solutions are gaining traction, with the market expected to grow at a compound annual growth rate of 54.7% from 2022 to 2027 [4][10]. Future Projections - The company’s net profit is projected to be 2.302 billion yuan in 2024, 2.834 billion yuan in 2025, and 3.398 billion yuan in 2026, with corresponding EPS of 1.57, 1.94, and 2.32 yuan [10][11]. - The current stock price corresponds to PE ratios of 29.73, 24.14, and 20.14 for 2024, 2025, and 2026, respectively [10][11].