IEIT SYSTEMS 2Q26指引强劲超预期 或受益于内存涨价

IEIT SYSTEMS (000977.SZ) 2Q26 Guidance Strong Beat Likely on Memory Price Hike CITI’S TAKEIEIT reported 2Q26 NP guidance of Rmb2.0-2.5bn (+229%-312% QoQ), largely ahead of CitiE of Rmb1.3bn, as well as bullish market expectationsof ~Rmb1bn in terms of our conversation with investors. We believe IEITlikely benefited from memory price hike in 2Q26 as the company had~Rmb44bn inventory as of 1Q26 vs. 1Q26 COGS of 33bn. Meanwhile, wealso note that there could be some superpod shipment in 2Q, but weexpect that the contribution could be limited. We wait for full results to bereleased. Karen HuangAC+852-2501-2755karen.xw.huang@citi.com Kyna Wong+852-2868-7820kyna.wong@citi.com Kevin Chen+852-2501-2125kevin.y.chen@citi.com See Appendix A-1 for Analyst Certification, Important Disclosures and Research Analyst Affiliations Not for distribution in the People's Republic of China, excluding the Hong Kong Special Administrative Region and QualifiedForeign Institutional Investors. Bull/Bear: IEIT SYSTEMS IEIT SYSTEMS Valuation Our target price for IEIT Systems shares of Rmb75.0 is based on 25x 2027E P/E, set at 3-yr average. We believe the market hasfully and fairly factored in domestic AI server contribution. Risks Key risk factors include: 1) slower/faster-than-expected recovery in end-market demand; 2) slower/faster-than-expectedadoption of AI affect internet companies’ hardware purchase budget; 3) significant margin deterioration/expansion that resultsin lower/higher-than-expected earnings; and 4) an intensification/easing of US-China tensions in the tech space, which wouldmean an unstable/stable business environment. Any of these risk factors could cause the shares to deviate from our targetprice. If you are visually impaired and would like to speak to a Citi representative regarding the detailsof the graphics in this document, please call USA 1-888-500-5008 (TTY: 711), from outside theUS +1-210-677-3788 Appendix A-1 ANALYST CERTIFICATION The research analysts primarily responsible for the preparation and content of this research report are either (i) designatedby “AC” in the author block or (ii) listed in bold alongside content which is attributable to that analyst. If multiple ACanalysts are designated in the author block, each analyst is certifying with respect to the entire research report other than(a) content attributable to another AC certifying analyst listed in bold alongside the content and (b) views expressed solelywith respect to a specific issuer which are attributable to another AC certifying analyst identified in the price charts orrating history tables for that issuer shown below. Each of these analysts certify, with respect to the sections of the reportfor which they are responsible: (1) that the views expressed therein accurately reflect their personal views about eachissuer and security referenced and were prepared in an independent manner, including with respect to Citigroup GlobalMarkets Inc. and its affiliates; and (2) no part of the research analyst's compensation was, is, or will be, directly orindirectly, related to the specific recommendations or views expressed by that research analyst in this report. IMPORTANT DISCLOSURES Analysts’ compensation is determined by Citi Research management and Citigroup’s senior management and is based uponactivities and services intended to benefit the investor clients of Citigroup Global Markets Inc. and its affiliates (the “Firm”).Compensation is not linked to specific transactions or recommendations. Like all Firm employees, analysts receivecompensation that is impacted by overall Firm profitability which includes investment banking, sales and trading, andprincipal trading revenues. One factor in equity research analyst compensation is arranging corporate access events betweeninstitutional clients and the management teams of covered companies. Typically, company management is more likely toparticipate when the analyst has a positive view of the company.For financial instruments recommended in the Product in which the Firm is not a market maker, the Firm is a liquidity provider in such financial instruments (and any underlying instruments) and may act as principal in connection with transactions insuch instruments. The Firm is a regular issuer of traded financial instruments linked to securities that may have beenrecommended in the Product. The Firm regularly trades in the securities of the issuer(s) discussed in the Product. The Firm mayengage in securities transactions in a manner inconsistent with the Product and, with respect to securities covered by theProduct, will buy or sell from customers on a principal basis. Unless stated otherwise neither the Research Analyst nor any member of their team has viewed the material operations of theCompanies for which an investment view has been provided within the past 12 months.For important disclosures (including copies of historical disclosures) regarding the companies that are the subject o