Incidents:

On April 27, the company disclosed its 2024 quarterly report. Revenue for the first quarter of 2024 was 4.423 billion yuan, up 17.77% year on year, and net profit to mother was 392 million yuan, up 58.25% year on year.

The industry gradually picked up, and profits increased sharply year-on-year in the first quarter:

Downstream demand in the electronics industry was under pressure in 2023, the copper-clad plate industry expanded production capacity and oversupply was in demand, and the overall industry was scrambling for orders at low prices. The company continues to follow up on market demand and seize important markets such as photovoltaics and inverters, overseas 5G and servers, mobile phone HDI, automotive electronics, and some consumer products in the first half of 2023. The market gradually picked up in the second half of the year. The company actively sought and implemented orders and continuously optimized the procurement model. In the first quarter of 2024, the industry maintained a recovery trend. The company's revenue for the first quarter of 2024 was 4.423 billion yuan, up 17.77% year on year, and net profit to mother was 392 million yuan, up 58.25% year on year.

Continuous technological innovation, AI products have passed the certification of well-known customers:

Under fierce industry competition, the company insists on stepping up efforts to promote new product development and market certification. The annual report revealed that over the years, the company has closely followed the technical requirements of market development, carried out technical cooperation with advanced terminal customers in the market, and made forward-looking product technical plans. The products have been widely used in high computing power, AI servers, 5G antennas, communication backbone networks, next-generation communication base stations, large-scale computers, routers, high-end servers, mobile terminals, automotive electronics, smart homes, security, industrial control It has been highly recognized by leading manufacturers in various industries for electronic products such as medical equipment, large displays, LED backlights and lighting, chip packaging, and consumer products. The annual report revealed that the company was the first company in the industry to release degradable and recyclable copper-clad plates. High-end high-speed products have also obtained certification from world-renowned terminal AI servers, achieving a major breakthrough in the field of AI GPUs.

Investment advice:

We expect the company's revenue from 2024 to 2026 to be 18.908 billion yuan, 21,593 billion yuan, and 24.681 billion yuan, respectively, and net profit to mother will be 1.72 billion yuan, 2,067 billion yuan, and 2,478 billion yuan respectively, giving 27 times PE over 24 years, corresponding to a target price of 19.69 yuan for six months, maintaining a “buy-A” investment rating.

Risk warning:

Industry demand falls short of expectations; new product development and introduction falls short of expectations; market competition intensifies.