Sugon(603019) 平安证券·2024-11-01 04:10Investment Rating - The report maintains a "Recommend" rating for Sugon (603019 SH) [1] Core Views - Sugon achieved steady growth in the first three quarters of 2024, with revenue increasing by 3 65% YoY to RMB 8 041 billion and net profit attributable to shareholders growing by 2 57% YoY to RMB 770 million [2][3] - The company continues to deepen its layout in the computing power field, promoting the interconnection of computing resources and industrial openness [6] - Sugon is actively seizing development opportunities in the era of large models, with its computing power industry layout providing a strong foundation [6] Financial Performance Revenue and Profit - Q3 2024 revenue decreased by 1 19% YoY to RMB 2 329 billion, while net profit attributable to shareholders increased by 0 41% YoY to RMB 206 million [3] - Gross margin improved by 0 93 percentage points YoY to 26 81% in the first three quarters of 2024 [3] - Operating expense ratio increased by 2 67 percentage points YoY to 21 29%, with R&D expense ratio rising by 1 15 percentage points to 12 22% [3] R&D and Innovation - R&D expenses reached RMB 983 million in the first three quarters of 2024, a 14 49% YoY increase [4] - The company launched new products including FlashNexus all-flash storage and upgraded ParaStor distributed storage, achieving significant performance improvements [4] - SugonRI 2 0 industrial solution features self-developed SugonC++ programming language and a rich industrial knowledge base [5] Industry and Market Position - Sugon is a leading ICT infrastructure solutions provider in China, with a strong focus on computing power services [7] - The company is accelerating the integration of high-performance computing, intelligent computing, and general-purpose computing to meet diverse application needs [6] - Sugon is building a new ecosystem of "domestic computing power + domestic software" through enhanced industrial collaboration [6] Future Outlook - The company is expected to achieve net profits of RMB 2 181 billion, RMB 2 656 billion, and RMB 3 290 billion in 2024, 2025, and 2026 respectively [7] - EPS is forecasted to be RMB 1 49, RMB 1 82, and RMB 2 25 for 2024-2026, with corresponding P/E ratios of 41 1x, 33 7x, and 27 2x [7] - Gross margin is projected to increase from 29 3% in 2024 to 31 9% in 2026, while net margin is expected to grow from 14 0% to 15 4% over the same period [10]