CGT GROUP(SZ:000066) Guohai Securities·2024-05-10 09:00Investment Rating - The report maintains a "Buy" rating for the company [1][8] Core Views - In Q1 2024, the company achieved a revenue of 2.663 billion yuan, representing a year-on-year increase of 21.13%, while the net profit attributable to shareholders was a loss of 250 million yuan, an improvement from a loss of 305 million yuan in the same period of 2022 [2][3] - The company is focusing on optimizing its business structure and enhancing its capabilities, participating in significant projects and achieving notable market share growth in various sectors [5][6] Summary by Relevant Sections Financial Performance - In 2023, the company reported total revenue of 13.42 billion yuan, a decrease of 4.33% year-on-year, and a net profit loss of 977 million yuan compared to a profit of 120 million yuan in 2022 [2][3] - The company's Q1 2024 revenue of 2.663 billion yuan reflects a 21.13% increase year-on-year, with a reduced net loss of 250 million yuan [2][3] - The company’s sales, management, and R&D expense ratios for 2023 were 4.79%, 6.59%, and 10.15%, respectively, with changes in these ratios indicating adjustments in operational costs [3] Business Segments - The computing industry segment accounted for 62% of revenue in 2023, generating 8.286 billion yuan, down 3.85% year-on-year, with a gross margin of 16.34% [1][4] - The system equipment segment, which made up 32% of revenue, reported 4.3 billion yuan in revenue, a decline of 5.07% year-on-year, with a gross margin of 27.72% [4][5] - The company launched its first AI server and received orders for 20 units from a key client, indicating a strategic shift towards AI technology [1][4] Future Projections - Revenue projections for 2024-2026 are 15.549 billion yuan, 18.788 billion yuan, and 21.654 billion yuan, respectively, with expected net profits of 109 million yuan, 314 million yuan, and 517 million yuan [6][7] - The report anticipates a significant increase in earnings per share (EPS) from -0.30 yuan in 2023 to 0.16 yuan by 2026, reflecting a recovery in profitability [7][8]