Sugon(SH:603019) CHINA DRAGON SECURITIES·2024-04-24 05:32Investment Rating - The report assigns an "Accumulate" rating for the company, marking the first coverage [1][3]. Core Views - The company has shown steady growth, with a revenue of 14.353 billion yuan in 2023, representing a year-on-year increase of 10.34%. The net profit attributable to shareholders reached 1.836 billion yuan, up 18.88% year-on-year [1]. - The company maintains a strong focus on core technology research and development, with R&D expenses amounting to 2.444 billion yuan during the reporting period. This investment is expected to enhance its competitiveness in high-end computing [1]. - The company is well-positioned to benefit from the wave of intelligent computing driven by artificial intelligence, with significant advancements in storage and liquid cooling technologies [1]. - The company is actively leveraging its technological advantages in computing to explore industry applications, launching the "Shuguang Smart Industry" strategy and a new smart industrial platform [1]. - The company has invested in multiple quality assets, covering the entire industry chain from chips to cloud computing, which is expected to enhance business synergy and create a self-sustaining ecosystem [1]. Financial Summary - In 2023, the company achieved a revenue of 14.353 billion yuan, with a net profit of 1.836 billion yuan. Projections for 2024-2026 indicate net profits of 2.184 billion, 2.501 billion, and 3.033 billion yuan, respectively [3][4]. - The company's revenue growth rates are forecasted at 12.1% for 2024, 11.3% for 2025, and 12.2% for 2026, while net profit growth rates are expected to be 19.0%, 14.5%, and 21.3% for the same years [4][7]. - The company's price-to-earnings (P/E) ratios for 2024-2026 are projected to be 29.9, 26.1, and 21.6, respectively [3][4].