2024Q1's performance improved significantly year over year, along with the recovery of the consumer electronics industry, maintaining the 2024Q1 “buy” rating of revenue of 6.687 billion yuan, +0.29% year over month, -42.41% month on month; net profit to mother of 497 million yuan, +18.81% year on month, -65.53% month on month; net profit of 504 million yuan, +24.78% year on month, -63.96% month on month; gross profit margin of 20.37%, -0.54 pcts year on year and -822.82 pcts month on month. We maintain our 2024-2026 performance expectations. We expect net profit to be 35.52/41.60/4.791 billion yuan for 2024-2026, corresponding EPS of 1.53/1.79/2.06 yuan, and the current stock price corresponding to PE is 15.5/13.2/11.5 times. The company is a leading consumer electronics PCB industry, profoundly benefiting from the recovery of the consumer electronics industry and maintaining a “buy” rating.
The consumer electronics industry is recovering, and the company's performance is expected to bottom out and the consumer electronics industry is recovering. Looking at the breakdown, mobile phones: According to Canalys data, 2024Q1 global smartphone shipments are +11% year-on-year. As the economy stabilizes and new AI phone products are launched, demand for mobile phones is expected to continue to rebound in the future. PC: According to Canalys data, total global PC shipments of 2024Q1 reached 57.2 million units, +3.2% year over year. PC demand is recovering. With the Windows 11 update and the release of new AI PC products, shipments are expected to rebound significantly in 2024. Furthermore, with the advent of new products such as AI PCs and mobile phones, the precision and number of layers of soft and hard boards are expected to be upgraded, and the value of stand-alone machines is expected to continue to increase. The company is the world's leading consumer electronics PCB company. The company's performance is expected to continue to improve in the future as the consumer electronics industry recovers and demand for high-end PCB boards increases.
Actively lay out emerging fields such as automobiles and AI to build a new growth engine business side: in the automotive sector, the 2023H1 completed smooth mass production of radar operation boards, and the 2023Q4 lidar and radar high-frequency antenna boards began to enter mass production; thanks to the increase in shipments of ADAS Domain Controllers, automotive radars, and automotive BMS boards, etc., the company's automotive products have grown significantly. In the server field, in the face of growing demand for emerging AI servers, the company continues to improve its thick HDI capabilities to meet the needs of future AI servers. Currently, the main production product board level has been upgraded to 16 to 20L or above. In the AR/VR field, the company has become a supplier of mainstream products at home and abroad. Production capacity side: Accelerate the construction of the Thai plant. The first phase of the project will focus on automotive server products. It is expected that 2025H2 will be put into operation.
Risk warning: downstream demand falls short of expectations; new product introduction falls short of expectations; technology research and development falls short of expectations.