Sugon(603019) 国联证券·2024-04-19 13:32Investment Rating - The report maintains a "Buy" rating for the company [5][7]. Core Views - The company has a comprehensive product matrix and synergistic advantages, positioning it to benefit from the increasing demand for computing power [3][4]. - The development of artificial intelligence is driving a surge in computing power demand, with significant advancements in large model research and commercialization [4]. - The company is expected to achieve revenue growth of 18.91%, 17.70%, and 16.30% for the years 2024, 2025, and 2026, respectively, with net profit growth of 24.19%, 20.57%, and 19.89% during the same period [5]. Financial Performance Summary - In 2023, the company achieved revenue of 143.53 billion yuan, a year-on-year increase of 10.34%, and a net profit of 18.36 billion yuan, up 18.88% [2][6]. - The gross profit margin for 2023 was 26.26%, remaining stable compared to the previous year [2]. - The fourth quarter of 2023 saw revenue of 65.95 billion yuan, a 17.31% increase year-on-year, and a net profit of 10.86 billion yuan, up 21.89% [2]. Revenue and Profit Forecast - Projected revenues for 2024, 2025, and 2026 are 170.67 billion yuan, 200.88 billion yuan, and 233.62 billion yuan, respectively [5]. - Expected net profits for the same years are 22.80 billion yuan, 27.49 billion yuan, and 32.96 billion yuan [5]. - The earnings per share (EPS) are forecasted to be 1.56 yuan, 1.88 yuan, and 2.25 yuan for 2024, 2025, and 2026, respectively [5]. Valuation Metrics - The report assigns a target price of 56.08 yuan based on a 36x price-to-earnings (P/E) ratio for 2024 [5]. - The current price of the stock is 44.67 yuan [6].