Sharetronic(300857)2024-10-13 23:06Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 101.27 CNY, while the current price is 71.70 CNY [2]. Core Views - The company's computing power business is experiencing continuous development, marking a significant step towards a new growth journey [2]. - The company has signed multiple cloud service cooperation agreements with leading clients, laying a solid foundation for its global strategy [2]. - The company is optimistic about its business model and profitability improvements through partnerships with major clients, which represent a milestone in its cloud service development [2]. - The company has made substantial investments in GPU servers to enhance its computing power service capabilities, with existing deployments generating revenue from various applications [2][3]. Financial Summary - The company’s total revenue is projected to grow from 4,658 million CNY in 2023 to 15,753 million CNY in 2026, reflecting a compound annual growth rate (CAGR) of 80.3% from 2023 to 2024 [3][4]. - The net profit attributable to the parent company is expected to increase from 287 million CNY in 2023 to 1,698 million CNY in 2026, with a significant growth rate of 187.9% in 2024 [3][4]. - Earnings per share (EPS) are forecasted to rise from 1.17 CNY in 2023 to 6.92 CNY in 2026, indicating a strong upward trend in profitability [3][4]. Business Developments - The company has established a large-scale computing service cluster capable of training and inference for large models, with ongoing procurement of GPU servers [2]. - The company has successfully deployed its servers across multiple locations in China, focusing on services such as graphic rendering, video editing, data analysis, and game acceleration [2]. - The company is positioned as a leader in the domestic market, benefiting from the rapid growth of AI computing power and the server remanufacturing industry [2].