occurrences
Shiyun Circuit released its 2024 semi-annual report: the company achieved revenue of 2.396 billion yuan in the first half of 2024, up 11.38% year on year; realized net profit due to mother 0.303 billion yuan, up 54.59% year on year; realized net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss of 0.298 billion yuan, an increase of 54.97% year on year.
Key points of investment
Revenue grew steadily in the first half of the year, and profits increased dramatically
In the first half of 2024, the company closely followed market demand, actively developed business, and had sufficient orders. Coupled with the accelerated release of production capacity in convertible bond raising projects, the overall capacity utilization rate increased, driving performance growth. In addition, the company's product structure has been further optimized to continue to promote the development of emerging businesses such as new energy vehicles, artificial intelligence, and wind storage, and achieve continuous optimization of the product structure, thereby increasing gross margin; the exchange rate of RMB against the US dollar fell, and the company mainly used overseas business, mostly the US dollar as the settlement currency, generating exchange income, which contributed to a significant year-on-year increase in the company's net profit to mother.
Take the lead in laying out automotive PCBs and vigorously explore domestic and foreign markets
The company has been deeply involved in the automotive PCB field for many years, and the automotive application market is currently the company's largest sales business segment. With its accumulated technology and experience in the field of automotive PCBs, the company has been recognized by many high-quality automotive terminal customers, and maintains close cooperation with brands such as Tesla, BMW, Xiaopeng, GAC, and Great Wall. In the first half of 2024, the company further introduced domestic automotive terminal customers. Customers such as Geely Krypton, Chery Zhixing, and Ideal Smart Driving received targeted intelligent driving projects and entered mass production and supply. At the same time, the company continues to explore domestic and foreign markets, continuously increase its market share, and consolidate its dominant position in the automotive PCB field.
Investment in R&D continued to increase, and strategic new products were mass-produced in the first half of 2024. The company invested 94.6183 million yuan in R&D, accounting for 3.95% of the company's revenue. The company achieved mass production of high-speed 3-stage, 4-stage HDIPBs and HDI soft and hard boards for automobiles. Ion migration-resistant high-voltage thick copper PCBs can be used in energy management systems and high-voltage fast charging piles for new energy vehicles. Furthermore, the company has made progress in the field of AI servers. It has achieved mass production of high-multi-layer ultra-low loss PCBs such as cloud data centers, AI high computing power modules, and edge computing, and mass production of 28-layer AI server circuit boards, 24-layer ultra-low loss servers, and 5G communication PCBs. In the future, the company will continue to adhere to an innovation-driven development strategy and continuously improve its technical strength and innovation ability.
Profit forecasting
The company has extensive overseas business. At the same time, it actively lays out the domestic new energy PCB field and vigorously explores domestic and foreign markets. It is predicted that the company's revenue for 2024-2026 will be 5.333, 6.346, 7.266 billion yuan, and EPS will be 0.98, 1.21, and 1.46 yuan respectively. The current stock price corresponding to PE is 22.6, 18.3, and 15.2 times, respectively. In the context of the rapid development of new energy vehicles, the company is further expanding high-growth circuits in the fields of AI and energy storage, with broad development prospects and maintaining a “buy” investment rating.
Risk warning
New energy vehicle sales fall short of expectations; downstream demand falls short of expectations; industry competition intensifies; fluctuating raw material prices for PCB products; and market fluctuations.