Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company achieved a revenue of 750 million yuan in 2024, a year-on-year decline of 17.51%, with a net profit attributable to the parent company of 69.27 million yuan, down 54.25% year-on-year [1] - In Q1 2025, the company reported a revenue of 211 million yuan, a year-on-year increase of 7.08%, while the net profit attributable to the parent company was 17.01 million yuan, down 45.11% year-on-year [1] - The company is approaching a revenue inflection point, with a significant increase in contract liabilities, reaching a historical high of 435 million yuan by Q1 2025, indicating a solid foundation for future performance rebound [2] - The expansion of production capacity in Southeast Asia and the booming demand for HDI (High-Density Interconnect) are expected to benefit the company's PCB equipment business significantly [3] - High R&D investment is aimed at achieving innovation and excellence in high-end circuit boards and emerging market equipment, which is expected to open up long-term growth opportunities for the company [4] Summary by Sections Financial Performance - In 2024, the company reported a revenue of 750 million yuan, with a year-on-year decrease of 17.51% and a net profit of 69.27 million yuan, down 54.25% [1] - Forecasted revenues for 2025, 2026, and 2027 are 1.40 billion yuan, 1.69 billion yuan, and 2.01 billion yuan, respectively, with expected growth rates of 86.25%, 21.19%, and 18.60% [8] - The net profit for 2025, 2026, and 2027 is projected to be 183.15 million yuan, 275.12 million yuan, and 341.33 million yuan, reflecting growth rates of 164.39%, 50.21%, and 24.07% [8] Market Position and Opportunities - The company is positioned to benefit from the expansion of domestic PCB enterprises in Southeast Asia, with a significant increase in new orders expected in 2025 [3] - The demand for HDI is anticipated to grow due to trends in AI servers and automotive intelligence, providing further opportunities for the company [3] - The company's VCP equipment has achieved domestic leadership in several key metrics, with ongoing R&D efforts aimed at enhancing market share and technological capabilities [4]

Group 1: Business Strategy and Performance - The company has adopted a comprehensive strategy for transitioning to intelligent computing, focusing on a multi-cloud approach to enhance resource utilization and service capabilities [2][3]. - In 2024, the company achieved a revenue of 139,679 million CNY, marking a 12% year-on-year growth, and has maintained steady growth for five consecutive years since its listing [6][13]. - The intelligent computing cloud business generated 18,287 million CNY in revenue, a significant increase of 184% year-on-year, with its revenue share rising from 5% to 13% [10][13]. Group 2: Cost Optimization and Profitability - The company is focusing on optimizing its cost structure as a key strategy for achieving profitability, implementing measures such as controlling fixed asset investments and enhancing supply chain efficiency [4][16]. - In 2024, gross margin improved by 3.8 percentage points, management salaries decreased by approximately 1%, and financial expenses were reduced by about 13% [4][16]. - Despite a net loss, the company has narrowed its losses, with a 10.86% reduction in net loss for 2024 and a 14.54% reduction in the first quarter of 2025 [3][7]. Group 3: Market Expansion and Future Growth - The company plans to expand its industry application scenarios and develop differentiated product features to meet diverse customer needs [5][11]. - The overseas market is a key component of the company's strategic layout, with revenue from this segment steadily increasing and achieving positive gross margins [8][14]. - The global cloud computing market is projected to reach 1 trillion CNY by 2025, with a year-on-year growth rate of 40.6%, indicating strong future demand for cloud services [12][14]. Group 4: Competitive Landscape and Industry Outlook - The company is positioned favorably within the competitive landscape, outperforming the average revenue growth rate of the computer industry, which was 8.8% in 2024 [12][13]. - The intelligent computing sector is expected to see significant growth driven by advancements in AI and related technologies, with the company actively investing in GPU computing and domestic chip adaptation [17][18]. - The overall industry is experiencing a transformation, with emerging technologies driving a new wave of growth in cloud computing and digital infrastructure [12][14].

Investment Rating - The report maintains a positive outlook on the Hong Kong stock market, particularly focusing on sectors benefiting from domestic consumption policies and technological advancements [2][5]. Core Insights - The report highlights the resilience of the Hong Kong stock market amidst global risk aversion, driven by adjustments in the US market and the subsequent impact on technology stocks [4]. - It emphasizes the importance of domestic consumption policies, which are expected to stimulate demand and support sectors such as consumer goods and technology [5][11]. - The report notes significant developments in the AI sector, with local deployment solutions and new product launches accelerating, indicating a robust growth trajectory for technology companies [7][10]. Summary by Sections Market Strategy - The report discusses the ongoing adjustments in the US market leading to increased global risk aversion, which has resulted in a slight pullback in the Hong Kong stock market [4]. - Despite the adjustments, the Hong Kong market shows resilience, particularly in consumer sectors, supported by new consumption policies following the National People's Congress [4][5]. Consumption Policies - The report outlines the rapid implementation of consumption support policies post-National People's Congress, with specific measures such as birth subsidies and a comprehensive action plan to boost consumption across various sectors [11][29]. - It highlights the government's focus on enhancing consumer confidence and stimulating demand through a wide-ranging action plan that includes 30 specific tasks aimed at expanding domestic demand [30][32]. Technology Sector - The report identifies a multi-faceted development in AI technology, with major companies accelerating the launch of local deployment solutions and AI agent applications, indicating a significant growth opportunity in this sector [10][16]. - It notes the emergence of new AI models, such as Google's Gemma-3, which can be deployed on consumer-grade hardware, thus lowering barriers for AI adoption [13][16]. - The report emphasizes the ongoing demand for AI infrastructure and data centers, driven by the increasing penetration of AI across various industries, leading to substantial stock price increases for related companies [18][24].