LCXX(000977) 国联证券·2024-04-22 23:30Investment Rating - The investment rating for the company is to "maintain attention" due to its solid position in the domestic server market and potential benefits from increasing computing power demand [5]. Core Viewpoints - The company has released its annual report for 2023, showing a revenue of 65.867 billion yuan, 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. However, in Q4 2023, the company achieved a revenue of 17.770 billion yuan, a year-on-year increase of 5.34%, and a net profit of 999.6 million yuan, up 84.47% year-on-year [1]. - The company is seizing opportunities in the intelligent development sector, launching a new generation of G7 computing platforms and AI servers, which significantly enhance performance [2][3]. - The demand for computing power is expected to rise significantly due to the advancements in generative artificial intelligence, with a projected compound annual growth rate of 33.9% for intelligent computing power in China from 2022 to 2027 [4]. Financial Performance Summary - In 2023, the company reported a revenue of 65.867 billion yuan, with a year-on-year growth rate of -5.41%. The projected revenues for 2024, 2025, and 2026 are 73.836 billion yuan, 84.395 billion yuan, and 95.366 billion yuan, respectively, with growth rates of 12.10%, 14.30%, and 13.00% [6]. - The net profit attributable to shareholders for 2024, 2025, and 2026 is expected to be 1.951 billion yuan, 2.499 billion yuan, and 2.998 billion yuan, with year-on-year growth rates of 9.42%, 28.13%, and 19.95% [6]. - The company's earnings per share (EPS) for the next three years are projected to be 1.33 yuan, 1.70 yuan, and 2.04 yuan, with a three-year compound annual growth rate (CAGR) of 18.92% [5]. Market Position and Product Development - The company ranks second globally and first in China in server market share, and it is also among the top three in storage market share globally [3]. - The company has introduced a new AI Ethernet switch, X400, specifically designed for generative AI, marking a significant advancement in AI network performance [3].