Wangsu Science & Technology (SZ:300017) Minsheng Securities·2024-04-25 11:00Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook on its performance and market position [2][3]. Core Insights - In Q1 2024, the company achieved a revenue of 1.12 billion yuan, a year-on-year decrease of 4.1% and a quarter-on-quarter decrease of 5.8%. However, the net profit attributable to shareholders increased by 46.0% year-on-year to 140 million yuan, despite a quarter-on-quarter decrease of 26.1% [2]. - The company is focusing on its core businesses, including CDN and edge computing, while also expanding into overseas markets. It aims to enhance its product capabilities in new business areas such as computing cloud, MSP, and liquid cooling solutions [2]. - The company is developing an "Edge and Security Innovation Solution" to support enterprises going global, providing comprehensive services for content distribution and media processing [2]. Financial Performance Summary - For Q1 2024, the company reported a revenue of 1.12 billion yuan, with a year-on-year decline of 4.1% and a quarter-on-quarter decline of 5.8%. The net profit attributable to shareholders was 140 million yuan, reflecting a year-on-year growth of 46.0% [2]. - The forecast for net profit attributable to shareholders for 2024-2026 is 650 million, 760 million, and 928 million yuan respectively, with corresponding P/E ratios of 36, 31, and 25 times [2][3]. - The company is expected to see a revenue growth rate of 11.8% in 2024, with a projected net profit growth rate of 6.6% [7]. Business Strategy and Market Position - The company is actively pursuing innovation in edge computing and security solutions, leveraging its extensive node resources to enhance global service capabilities [2]. - It is also focusing on developing new business lines that align with market demands, such as liquid cooling technology for data centers, which has been successfully applied in various sectors [2]. - The company is well-positioned to capitalize on the overseas expansion potential of domestic short video giants, enhancing its competitive edge in the CDN market [2].