LCXX(000977) 申万宏源·2024-04-30 03:02Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company reported Q1 2024 revenue of 17.607 billion yuan, a year-on-year increase of 85.32%, and a net profit attributable to shareholders of 306 million yuan, up 64.39% year-on-year, exceeding expectations [5] - The significant revenue growth is attributed to the recovery in general server procurement, as major internet clients have resumed normal purchasing levels after a reduction in Q1 2023 [5] - Inventory levels increased to 24.3 billion yuan in Q1 2024, providing support for future performance, driven by increased procurement of AI chips and other key materials [5] - The overall gross margin was 8.08%, down 4.93 percentage points year-on-year, primarily due to a higher proportion of internet clients and intensified market competition [5] - The company leads the domestic AI server market share, with expectations to remain a core supplier for AI servers due to its capability to adapt to various AI chips [5] Financial Summary - The company’s projected revenues for 2024-2026 are 75.063 billion yuan, 86.288 billion yuan, and 99.952 billion yuan, representing year-on-year growth rates of 14%, 15%, and 15.8% respectively [6] - The projected net profits for the same period are 2.138 billion yuan, 2.605 billion yuan, and 3.266 billion yuan, with year-on-year growth rates of 19.9%, 21.8%, and 25.4% respectively [6] - The gross margin is expected to improve slightly from 10.5% in 2024 to 11.2% by 2026 [6]