Incident: The company announced its 24-year performance report, with total revenue of 13.34 billion of 49.3% year over year, net profit due to mother of 2.59 billion +71.1% year over year, net profit after deducting 2.55 billion year on year +80.8% year on year, net profit of 19.4% year on year +2.5 pcts. Our review is as follows:

The high increase in 24Q4 revenue and profit met expectations and set historical quarterly performance records. Demand for AI continued to drive rapid revenue and profit growth. The rapid growth in 24-year performance benefited from the structural demand for high-end PCBs in emerging computing scenarios such as high-speed computing servers and artificial intelligence. Relying on a balanced product layout and many years of deep cultivation of high-end products and mass production technology, the company's PCB business achieved revenue of about 12.84 billion yuan +49.8% year-on-year; at the same time, with the further optimization of the product structure of the company's PCB business, the gross margin of the company's PCB business increased to 35.85% year-on-year +3.39 pcts. Looking at the Q4 quarter alone, revenue was 4.33 billion +51.6% YoY +12.0%, net profit to mother 0.74 billion +32.1% YoY +4.4%, net profit not to mother 0.74 billion +39.5% YoY +6.5% YoY. The performance was in line with expectations, with revenue exceeding 4 billion in a single quarter making a historical quarterly record. The Q4 revenue side continued to maintain a rapid year-on-year growth trend, and the month-on-month acceleration shows that downstream AI high computing power computing scenarios continue to have strong structural demand for PCBs. The profit side growth rate is lower than the revenue growth rate, mainly due to the company's Q4 asset impairment reserves of about 0.15 billion. We believe that the profitability of the company's overall business is still at a high level.

In the short term, demand for high-margin high-speed high-multi-layer boards and HDI boards, such as downstream AI servers and high-end switches, remains strong. In the mass production and shipment phase of next-generation AI servers from major North American computing power customers, the share of shipments of high-speed AI computing power products is expected to continue to increase. The company's orders are full, and production capacity remains relatively scarce.

Looking ahead to 25-26, the accelerated expansion of the company's domestic and overseas production capacity will break the capacity bottleneck, and the AI computing power+automobile business will continue to contribute flexible performance to the company. The accelerated evolution of global general AI technology is driving rapid growth in demand in the field of computing power. The company's leading North American computing power customer base, 400G/800G/1.6T switches, high-value multi-layer boards for AI servers, and 6-level HDI shipments are expected to increase dramatically. Thailand's new factory starts production and climbing, and domestic 4.3 billion investment to accelerate the production capacity of new AI computing power chips to support high-end PCBs, will further drive performance release; in the automotive sector, the company's high-end PCBs such as ADAS, smart cockpit domain control, motor electronic control boards, and radar boards The link has superior resources and production capacity continues to be released. It is hoped to promote the rapid growth of the automobile business. At the same time, the subsidiary Shengweize will increase the market development of 48V P2Pack, the next-generation core technology, and continue to promote the commercialization of 800V high-voltage P2Pack technology products. It is expected that Shengweicse's business will gradually improve.

Maintain a “Highly Recommended” investment rating. The company's long-term growth logic is clear. Following the rapid development trend of downstream AI computing power, the domestic and overseas high-end production capacity expansion process is accelerating. The proportion of high-end products continues to increase, which is expected to open up more room for performance growth. Considering the company's Q4 revenue and profit record in a single quarter, full orders, continued expansion of future production capacity, and continuous optimization of the product structure, we recently forecast 24-26 revenue of 13.34/16.28/19.21 billion, net profit to mother of 2.59/3.48/4.24 billion, corresponding EPS of 1.35/1.82/2.21 yuan, corresponding to the current PE price of 33.1/24.6/20.2, maintaining the “Highly Recommended” rating.

Risk warning: Customer demand falls short of expectations, competition among peers intensifies, geopolitical risks increase, and new production capacity falls short of expectations.