LCXX(000977) 群益证券·2025-03-31 08:23Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 63 CNY per share [1][7]. Core Insights - The company reported a significant increase in revenue and net profit for 2024, with total revenue reaching 114.8 billion CNY, a year-over-year increase of 74%, and a net profit of 2.29 billion CNY, 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 growth in the server industry [8]. - The company has a strong position in the server market, ranking second globally and first in China, with a notable market share in liquid-cooled servers [8]. Summary by Sections Company Overview - The company operates in the computer industry, with a current A-share price of 53.54 CNY and a market capitalization of 78.73 billion CNY [2]. - Major shareholders include Inspur Group, holding 31.93% of shares [2]. Recent Ratings - The company has received multiple "Buy" ratings in recent evaluations, with the most recent rating on October 31, 2024 [3]. Financial Performance - The company achieved a gross margin of 6.85% for 2024, with a recovery in Q4 gross margin to 7.3% [8]. - The overseas revenue for 2024 was 34.1 billion CNY, representing a 257% increase year-over-year, accounting for 29.7% of total revenue [8]. Market Trends - Major internet companies like Tencent and Alibaba are significantly increasing their capital expenditures, which is expected to sustain high demand in the server industry [8]. - The company has established a strong foothold in AI and liquid-cooled server markets, with substantial growth in sales and market share [8]. Profit Forecast - The company’s net profit is projected to reach 3.34 billion CNY in 2025 and 3.96 billion CNY in 2026, with corresponding year-over-year growth rates of 45.69% and 18.67% [10].