FII(SH:601138) Xinda Securities·2024-05-05 14:00Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Insights - The company reported significant growth in Q1 2024, with operating revenue reaching 1186.88 billion yuan, a year-over-year increase of 12%, and a net profit of 41.85 billion yuan, up 34% year-over-year [2]. - AI server revenue has doubled, and the recovery of general servers has further propelled the company's growth, positioning it as a key player in the North American computing power supply chain [2][3]. - The profitability from AI servers is expected to offset declines in traditional business segments, with a strong outlook for capital expenditure growth among cloud vendors [3]. Financial Performance Summary - For 2024E, the company is projected to achieve operating revenue of 5329.90 billion yuan, with a year-over-year growth of 11.9%, and a net profit of 262.36 billion yuan, reflecting a 24.7% increase [3]. - Key financial metrics include: - Gross margin of 8.4% in 2024E, improving from 8.1% in 2023A [4]. - Return on equity (ROE) expected to rise to 16.9% in 2024E [4]. - Earnings per share (EPS) projected at 1.32 yuan for 2024E [4].