LCXX(000977) 平安证券·2024-04-22 01:30Investment Rating - The report maintains a "Recommendation" rating for the company, indicating an expectation that the stock will outperform the market by 10% to 20% over the next six months [4][8]. Core Views - The company reported a revenue of 65.867 billion yuan in 2023, a year-on-year decrease of 5.41%, and a net profit attributable to shareholders of 1.783 billion yuan, down 14.54% year-on-year [4][5]. - In Q4 2023, the company achieved a significant profit increase, with a net profit of 996 million yuan, marking an 84.47% year-on-year growth, ending a negative growth trend since Q4 2022 [5][6]. - The company is positioned as a global leader in the server industry, benefiting from the demand for computing power driven by AIGC trends [6][8]. Financial Summary - Revenue and Profit: The company’s revenue for 2023 was 65.867 billion yuan, with a projected increase to 75.468 billion yuan in 2024, reflecting a year-on-year growth of 14.6% [5][10]. - Profitability: The gross margin for 2023 was 10.0%, with an expected increase to 11.1% in 2024. The net profit margin was 2.7% in 2023, projected to rise to 2.8% in 2024 [5][11]. - Earnings Per Share (EPS): The diluted EPS for 2023 was 1.21 yuan, with forecasts of 1.45 yuan for 2024 and 1.77 yuan for 2025 [5][11]. Market Position and Strategy - The company has launched a new generation of AI training servers, significantly improving performance metrics, and is actively developing AI software infrastructure to support large model applications [8][10]. - The company’s market share in the global server industry remains strong, ranking second globally and first in China, with a focus on cloud computing and AI technologies [6][8]. Future Outlook - The company is expected to benefit from the growing demand for computing power, with projections indicating a rise in net profit to 2.142 billion yuan in 2024 and 2.605 billion yuan in 2025 [8][10]. - The report highlights the potential for the company to capitalize on the AIGC market, which is anticipated to drive significant growth in the computing power sector [6][8].