Sugon(SH:603019) Soochow Securities·2024-04-29 10:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is expected to benefit significantly from the domestic substitution of computing power and is positioned as a leader in computing power growth due to the integration of AI technologies [3] - The company's operating cash flow has improved significantly, with a net operating cash flow of 3.51 billion yuan in 2023, an increase of 212.02% year-on-year [3] - The company has increased its R&D investment, with an R&D expense ratio of 9.17% in 2023, up by 0.67 percentage points year-on-year [3] - The IT equipment business has shown steady revenue growth, with revenue of 12.78 billion yuan in 2023, a year-on-year increase of 11.63% [3] - The company is actively involved in building a national integrated computing power service platform, which aims to lower user barriers and enhance computing power application levels across various industries [3] Financial Performance Summary - In 2023, the company achieved total revenue of 14.35 billion yuan, a year-on-year growth of 10.34%, and a net profit attributable to shareholders of 1.84 billion yuan, up 18.88% year-on-year [2][3] - For Q1 2024, the company reported revenue of 2.48 billion yuan, a year-on-year increase of 7.86%, and a net profit of 143 million yuan, up 8.86% year-on-year [2][3] - The company's earnings per share (EPS) for 2023 was 1.25 yuan, with projections of 1.50 yuan for 2024 and 1.76 yuan for 2025 [2][3] - The projected net profit for 2024 is adjusted to 2.19 billion yuan, with further projections of 2.58 billion yuan for 2025 and 2.98 billion yuan for 2026 [3] Market Data - The closing price of the company's stock is 47.77 yuan, with a market capitalization of approximately 69.92 billion yuan [5] - The price-to-earnings (P/E) ratio is currently 38.08, projected to decrease to 31.95 in 2024 and 27.15 in 2025 [9]