Hygon Information Technology (SH:688041) Haitong Securities·2024-06-12 11:01Investment Rating - The investment rating for the company is "Outperform the Market" [2][8] Core Views - The company continues to experience high growth in performance, with a revenue of 6.012 billion yuan in 2023, representing a year-on-year increase of 17.3%. The net profit attributable to the parent company reached 1.263 billion yuan, up 57.17% year-on-year [6][8] - Strong demand driven by AI, IoT, and digitalization is evident, with the company’s CPU and DCU products undergoing successful iterations and upgrades [5][8] - The company has significantly increased its related party transaction volume, indicating a potential rise in business prosperity [5][8] Financial Performance Summary - In 2023, the company reported a revenue of 6.012 billion yuan, a 17.3% increase year-on-year, and a net profit of 1.263 billion yuan, reflecting a 57.2% year-on-year growth. The gross margin improved to 59.7% [6][10] - For Q1 2024, revenue was 1.592 billion yuan, a 37.09% increase year-on-year, with a net profit of 289 million yuan, up 20.53% year-on-year [6][8] - The company’s R&D investment for 2023 was 2.810 billion yuan, accounting for 46.74% of revenue, with a year-on-year increase of 35.93% [6][8] Future Projections - The company is expected to benefit from the demand surge in AI and digital transformation, with projected revenue growth rates of 38%, 33%, and 30% for 2024 to 2026 [8][11] - The forecasted revenue for 2024 is 8.297 billion yuan, with net profits expected to reach 1.634 billion yuan [8][11] - The gross margin is anticipated to gradually improve, reaching 60.17% in 2024 and 61.17% by 2026 [8][11]