FII(SH:601138) Guohai Securities·2024-05-04 15:00Investment Rating - The report maintains a "Buy" rating for the company [1][10]. Core Views - The company has shown significant growth in its AI engine capabilities, which is expected to benefit from the increased deployment of the GB200 platform [1][6]. - In Q1 2024, the company achieved record revenue, with AI server revenue nearly doubling year-over-year and showing strong sequential growth [3][5]. - The company's gross margin improved due to a favorable shift in revenue mix, with high-margin AI services contributing more significantly [4][7]. Financial Performance - In Q1 2024, the company reported revenue of 118.69 billion yuan, a year-over-year increase of 12.09%, and a net profit of 4.185 billion yuan, up 33.77% [5]. - The gross margin for Q1 2024 was 7.64%, reflecting a year-over-year increase of 0.28 percentage points, attributed to the rising share of AI business [4][7]. - The company’s operating expenses, including sales, management, and R&D, showed a stable decline, indicating improved efficiency [4][7]. Market Position and Outlook - The company is positioned as a key ODM supplier for major cloud providers like Amazon, Microsoft, and Google, which are increasing their capital expenditures [6][8]. - The introduction of NVIDIA's GB200 platform is expected to enhance the company's competitive edge in the AI market, with anticipated shipments exceeding one million units by 2025 [7][8]. - Revenue projections for 2024-2026 are estimated at 553.95 billion, 677.21 billion, and 782.95 billion yuan, respectively, with net profits expected to grow correspondingly [8][9].