GLONGHUI August 7 | Tianfeng Securities's research report on the 6th pointed out that Gongjin Co., Ltd. (603118.SH) continues to lay out the switch business and seize industry development opportunities. The company's net profit for 23-25 years is estimated to be 53/69/890 million yuan. The corresponding PE valuation is 17/13/10 times, covering an “increase in holdings” rating for the first time. The company has strong revenue momentum and excellent performance at home and abroad. The company's revenue increased from 7.84 billion yuan in 2019 to 10.974 billion yuan in 2022, with a compound growth rate of 11.86%. Overseas business revenue continued to grow, reaching 5.976 billion yuan in 2022. As factory construction in Vietnam continues to advance, the company's overseas business revenue may further increase, and the momentum for continued growth in overall performance is strong. The AI model iterates rapidly, and related industries continue to benefit. The global computing power requirement for head AI models doubles in 3-4 months, and the computing power required for head training models increases by as much as 10 times each year. In the context of increased AI computing power, switches and AI servers have ushered in investment opportunities.