LCXX(000977) 群益证券·2025-03-31 06:43Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside in the stock price [7][8]. Core Insights - The company reported a significant increase in revenue and net profit for 2024, with total revenue reaching 114.8 billion RMB, a year-over-year increase of 74%, and a net profit of 2.29 billion RMB, up 29% year-over-year [8]. - The company is expected to benefit from increased capital expenditures by major internet firms, which are projected to drive demand in the server industry [8]. - The company maintains a strong position in the server market, ranking second globally and first in China, with a notable market share in liquid cooling servers [8]. Company Overview - The company operates in the computer industry, with a current A-share price of 53.54 RMB as of March 28, 2025, and a market capitalization of 78.73 billion RMB [2]. - Major shareholders include Inspur Group Co., Ltd., holding 31.93% of shares [2]. - The company has shown a stock price fluctuation over the past year, with a high of 69.6 RMB and a low of 30.58 RMB [2]. Recent Ratings - The company has received multiple "Buy" ratings in recent evaluations, with the latest rating on October 31, 2024, at a target price of 44.79 RMB [3]. - The product mix is heavily weighted towards servers and components, accounting for 99.93% of total sales [3]. Financial Performance - The company’s gross margin for Q4 2024 was reported at 6.85%, with a recovery in Q4 gross margin to 7.3%, indicating a positive trend [8]. - The overseas revenue for 2024 reached 34.1 billion RMB, a significant increase of 257% year-over-year, contributing to 29.7% of total revenue [8]. - Profit forecasts for 2025 and 2026 are 3.34 billion RMB and 3.96 billion RMB, respectively, with year-over-year growth rates of 45.69% and 18.67% [8][10].