Hygon Information Technology (688041)2025-03-07 08:05Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a revenue of 9.16 billion yuan in 2024, representing a year-on-year growth of 52.4%, with a net profit of 1.93 billion yuan, also up by 52.7% year-on-year [7] - Significant increase in R&D investment, with R&D personnel growing from 1,641 to 2,157, and R&D expenses rising from 1.99 billion yuan to 2.91 billion yuan [7] - The company is well-positioned to benefit from the increasing capital expenditure (CapEx) from major clients like Alibaba, which plans to invest 380 billion yuan over the next three years [7] - The demand for CPUs is expected to improve, particularly in the government and enterprise sectors, which may boost the company's performance in 2025 [7] - The company is recognized for its leading products in both CPU and DCU markets, with a positive outlook on revenue growth driven by domestic AI chip demand [7] Financial Summary - Total revenue forecast for 2024 is 9.16 billion yuan, with projected growth rates of 40.96% and 43.84% for 2025 and 2026 respectively [1][8] - The net profit forecast for 2024 is 1.93 billion yuan, with expected growth rates of 50.52% and 49.58% for 2025 and 2026 respectively [1][8] - The earnings per share (EPS) is projected to be 0.83 yuan for 2025, increasing to 2.51 yuan by 2027 [1][8] - The company’s P/E ratio is expected to decrease from 192.59 in 2024 to 63.73 in 2027, indicating improving valuation [1][8]