分业务看，公司上半年针对下游产品的市场情况，进一步提升公司产品在高端PCB 市场的市场份额。公司通讯用板业务实现营收87.30 亿元，同比+3.68%；受益于iPad 新品发布带动相关产品拉货，消费电子及计算机用板业务实现营收39.31 亿元，同比+36.57%；此外，公司针对AI 相关产品带来的高阶HDI 和SLP 等产品的产能需求做好提前布局，得益于AI 服务器出货量成长显著，汽车及服务器产品实现销售收入4.30 亿元，同比增长94.31%。Description of the event
Pengding Holdings released its 2024 semi-annual report: in the first half of 2024, the overall development of the industry was in a steady recovery stage. The company achieved operating income of 13.126 billion yuan, +13.79%; achieved net profit to mother of 0.784 billion yuan, or -3.4% year over year; and achieved gross margin and net profit margins of 17.97% and 5.97%, respectively. Looking at the second quarter, the company achieved operating income of 6.44 billion yuan, +32.28% year over month; in terms of profit, due to the sharp decrease in 24Q2 exchange earnings compared to last year, the increase in R&D investment due to the construction of a factory in Thailand, and increased pressure on product prices in the second quarter, 24Q2 achieved net profit of 0.287 billion yuan, -27.03% YoY and -42.29% month-on-month; achieved gross margin and net profit margins of 15.48% and 4.46% respectively.
Incident comments
By business, the company focused on the market situation of downstream products in the first half of the year, further increasing the market share of the company's products in the high-end PCB market. The company's communication board business achieved revenue of 8.73 billion yuan, +3.68% year over year; benefiting from the launch of new iPad products, the consumer electronics and computer board business achieved revenue of 3.931 billion yuan, +36.57% year over year; in addition, the company arranged ahead of time for production capacity requirements for high-end HDI and SLP products brought by AI-related products, thanks to significant growth in AI server shipments. Automobile and server products achieved sales revenue of 0.43 billion yuan, a year-on-year increase 94.31%
Looking ahead to the future market, various brands are speeding up the launch of AI terminal products represented by AI phones and AI PCs. The folding phone market is booming, and the advent of a new industry innovation cycle is expected to bring new growth impetus to the development of the industry. In the field of consumer electronics, the company will simultaneously carry out product verification and technology development with customers for the next 1-2 years, and will directly participate in the forward-looking development of customers' next-generation and next-generation products. Currently, the PCB products produced can reach a minimum aperture of 0.025mm and a minimum line width of 0.020mm. In response to the market demand brought about by the rapid development of AI servers and smart driving for PCBs, the company's radar operation board and autonomous driving domain control board products continued to grow in volume, and also obtained certification from international Tier 1 customers. In addition, the company is speeding up the production expansion project for high-end HDI and SLP printed circuit boards in Huai'an Third Park. The second phase of the project is under construction, which is expected to further increase the company's market share in the field of high-end HDI and SLP products.
Maintain a “buy” rating. In recent years, Pengding Holdings has continuously improved the technical level of products, accumulated strong technical strength, actively laid out automotive, server and other fields, insisted on advanced development, and kept up with market trends and trends. In addition, the company issued a draft restricted stock incentive plan for 2024. The incentive plan granted a total of 388 incentives, mainly the company's core technical (business) personnel, fully demonstrating the company's operating confidence. Considering that Apple is currently at the starting point of a new innovation cycle, the introduction of AI functions has opened a new chapter in Apple AI. It is expected that the iPhone 17 series models released in 2025 will see major hardware upgrades, driving a steady rise in the company's basic market. I am optimistic that the company will enter a period of rapid growth in the second half of the year. The company is expected to achieve net profit of 3.819 billion yuan, 4.859 billion yuan, and 5.367 billion yuan in 2024-2026, corresponding to the current PE share price of 20.33 times, 15.98 times, and 14.46 times, respectively, maintaining a “buy” rating.
Risk warning
1. Technological innovation falls short of expectations;
2. Downstream demand growth falls short of expectations.
