LCXX(SZ:000977) ZHONGTAI SECURITIES·2024-04-30 05:30Investment Rating - The report maintains a "Buy" rating for the company [2][4]. Core Views - The company achieved significant revenue and profit growth in Q1 2024, with revenue reaching 17.607 billion yuan, a year-on-year increase of 85.32%, and net profit of 306 million yuan, up 64.39% year-on-year [4]. - The company leads the Chinese liquid cooling server market, with a market share of 36.8% in sales and 40.9% in shipments for 2023 [5]. - The report highlights the launch of the "Yuan Nao Qi Zhi EPAI," which provides efficient fine-tuning tools for large models, addressing the needs of high-density AI computing [5]. Financial Performance Summary - Revenue projections for 2024-2026 are 75.966 billion yuan, 87.703 billion yuan, and 99.473 billion yuan, respectively, with corresponding net profits of 2.066 billion yuan, 2.606 billion yuan, and 3.265 billion yuan [4][5]. - The company's gross margin for Q1 2024 was 8.08%, a decrease of approximately 4.93 percentage points compared to the same period in 2023 [4]. - The report indicates a decline in R&D expenses by 2.36% year-on-year, while sales expenses increased by 19.36% [4]. Market Position and Future Outlook - The company is positioned to benefit from the growing demand for high-density cooling solutions in data centers, driven by advancements in AI and computing technologies [5]. - The report forecasts a PE ratio of 27.4 for 2024, decreasing to 17.4 by 2026, indicating an expected improvement in valuation as earnings grow [5].