Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company reported a significant increase in revenue and profit, with a 34.3% year-on-year growth in net profit for 2024, driven by demand in optical communication and data center AI servers [7] - The company has achieved mass production of FC-BGA packaging substrates up to 16 layers, with capabilities for 18 and 20 layers in sample manufacturing [7] - The forecast for net profit has been raised due to continuous breakthroughs in computing power, optical communication, and automotive orders, with net profit estimates for 2025 and 2026 adjusted to 2.4 billion and 2.7 billion respectively [7] Financial Data and Profit Forecast - Total revenue is projected to grow from 13,526 million in 2023 to 25,301 million by 2027, with a compound annual growth rate (CAGR) of approximately 13.8% [6] - The net profit is expected to increase from 1,398 million in 2023 to 3,391 million by 2027, reflecting a strong growth trajectory [9] - The gross margin is anticipated to improve from 23.4% in 2023 to 26.9% in 2027, indicating enhanced profitability [6] Business Segments Performance - PCB business revenue is expected to reach 104.94 billion in 2024, with a year-on-year growth of 29.99%, contributing 58.60% to total revenue [7] - The packaging substrate business is projected to generate 31.71 billion in revenue in 2024, with a year-on-year increase of 37.49% [7] - The electronic assembly business is forecasted to achieve 28.23 billion in revenue, reflecting a year-on-year growth of 33.20% [7]

Group 1: PCB Business Performance - In 2024, PCB business achieved a revenue of 10.494 billion RMB, a year-on-year increase of 29.99%, with a gross margin of 31.62%, up by 5.07 percentage points [2] - Growth in PCB revenue is primarily driven by demand in the communication sector for high-speed switches and optical module products, as well as increased demand in data centers and automotive electronics [2] - The increase in PCB gross margin is attributed to higher revenue scale, improved factory capacity utilization, and optimized product structure [2] Group 2: Packaging Substrate Business Performance - In 2024, the packaging substrate business generated a revenue of 3.171 billion RMB, a year-on-year increase of 37.49%, with a gross margin of 18.15%, down by 5.72 percentage points [3] - The decline in gross margin is mainly due to rising raw material costs and fluctuations in market demand for BT substrates [3] Group 3: Product Development and Capacity Expansion - The company has achieved mass production capability for FC-BGA substrates with up to 16 layers, and sample production for 18 and 20 layers is underway [4] - The Guangzhou packaging substrate project has commenced production, with ongoing capacity ramp-up, although it is still in the early stages [5] - PCB business is expanding in the automotive electronics sector, focusing on high-frequency and HDI products for both domestic and international Tier 1 customers [7] Group 4: Capacity Utilization and Future Plans - PCB business maintains high capacity utilization due to sustained demand in computing and automotive electronics [9] - The company plans to enhance production efficiency through technological upgrades at existing factories and is progressing with the construction of a new facility in Nantong [10] - The total investment for the Thailand factory is 1.274 billion RMB, aimed at expanding overseas market reach [11]

Group 1: PCB Business Performance - In 2024, PCB business achieved a revenue of 10.494 billion CNY, a year-on-year increase of 29.99%, with a gross margin of 31.62%, up by 5.07 percentage points [1] - Growth in PCB revenue is primarily driven by demand in the communication sector, particularly for 400G AI-related products, data center servers, and automotive electronics [1] - The company has implemented operational management improvements to enhance cost competitiveness, including optimizing raw material usage and energy management [1] Group 2: Packaging Substrate Business Performance - In 2024, the packaging substrate business generated a revenue of 3.171 billion CNY, a year-on-year increase of 37.49%, with a gross margin of 18.15%, down by 5.72 percentage points [2] - The decline in gross margin is attributed to rising raw material costs and fluctuations in market demand for BT substrates [2] Group 3: Product Development and Capacity Expansion - The company has achieved mass production capabilities for FC-BGA substrates with up to 16 layers and is progressing with sample production for 18 and 20-layer products [3] - The Guangzhou packaging substrate project is in the early stages of capacity ramp-up, focusing on building production capabilities while managing associated costs [4] - PCB business is expanding its production capacity through technological upgrades and new projects in Shenzhen, Wuxi, Nantong, and Thailand [8] Group 4: Market Applications and Trends - The PCB business focuses on high-end products for communication devices, with significant applications in data centers and automotive electronics, particularly in the new energy and ADAS sectors [5][6] - The automotive electronics segment is a key area of expansion, targeting both domestic and international Tier 1 customers [6] - Recent demand in the storage sector has led to a slight increase in capacity utilization for the packaging substrate business [7]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][3][15] Core Views - The company is expected to achieve significant revenue growth in 2024, with a projected revenue of 179.07 billion yuan, representing a year-over-year increase of 32.39%. The net profit attributable to shareholders is expected to reach 18.78 billion yuan, up 34.29% year-over-year [3][4] - The report highlights the successful introduction of AI clients and the ramp-up of ABF substrate production as key drivers for profit growth in 2025 and beyond [3][4] - The company is focusing on the demand for "AI PCB," the ramp-up of ABF substrates, and the recovery of BT substrate demand in 2025 [4][3] Financial Summary - The company achieved a revenue of 135.26 billion yuan in 2023, with a decline of 3.3%. In 2024, revenue is expected to increase to 179.07 billion yuan, a growth of 32.4% [6][11] - The net profit attributable to shareholders is projected to grow from 1.398 billion yuan in 2023 to 1.878 billion yuan in 2024, reflecting a year-over-year increase of 34.3% [6][11] - The gross margin is expected to improve from 23.4% in 2023 to 24.8% in 2024, while the net margin is projected to remain stable at around 10.5% [6][11] - Earnings per share (EPS) are forecasted to rise from 2.73 yuan in 2023 to 3.66 yuan in 2024, with further increases to 5.08 yuan in 2025 and 6.39 yuan in 2026 [6][11] Business Segments - In 2024, the company’s PCB, packaging substrates, and electronic assembly segments are expected to generate revenues of 104.94 billion yuan, 31.71 billion yuan, and 28.23 billion yuan, respectively, with year-over-year growth rates of 29.99%, 37.49%, and 33.20% [4][3] - The PCB business is experiencing significant demand growth driven by data centers and automotive applications, while the packaging substrate segment is facing pressure due to capacity ramp-up issues [4][3]

Business Overview - The company focuses on the electronic interconnection field, with three main businesses: printed circuit boards (PCBs), electronic assembly, and packaging substrates, forming a unique "3-In-One" business layout [1] - The company provides comprehensive manufacturing capabilities from sample to mass production, offering one-stop solutions through design, manufacturing, assembly, and testing services [1] PCB Business Performance - In 2024, PCB business revenue reached CNY 10.494 billion, a year-on-year increase of 29.99%, with a gross margin of 31.62%, up by 5.07 percentage points [2] - Growth in PCB revenue was driven by increased demand in the communication sector (400G and above), AI servers, and automotive electronics [2] - The increase in gross margin was attributed to higher revenue scale, improved capacity utilization, and optimized product structure [2] Packaging Substrate Business Performance - In 2024, the packaging substrate business generated CNY 3.171 billion in revenue, a year-on-year increase of 37.49%, but with a gross margin of 18.15%, down by 5.72 percentage points [3] - The decline in gross margin was due to rising raw material costs and fluctuations in market demand [3] Product Development and Capacity Expansion - The company has achieved mass production capabilities for FC-BGA packaging substrates with up to 16 layers and is progressing with 18 and 20-layer products [4] - The Guangzhou packaging substrate project is in the early stages of capacity ramp-up, with batch orders being fulfilled, but it has negatively impacted profits due to increased costs [5] - PCB business is expanding in Shenzhen, Wuxi, Nantong, and Thailand, with ongoing upgrades and new construction to enhance production efficiency [10] Market Applications - PCB products are primarily used in communication devices, data centers, and automotive electronics, with the data center market reaching a scale of CNY 2 billion in 2024 [7] - The company maintains a focus on high-end PCB products and has a strong customer base across various industries [6] Research and Development - The company employs a three-tier R&D system to enhance technological capabilities and maintain competitive advantages in the industry [8] Capacity Utilization - PCB business maintains high capacity utilization due to ongoing demand in computing and automotive electronics, while packaging substrate business has seen a slight increase in utilization [9]

Investment Rating - The report maintains a "Buy" rating for the company [2][8] Core Insights - The company reported a sales revenue of 17.907 billion yuan in 2024, representing a year-on-year growth of 32.39%, and a net profit attributable to shareholders of 1.878 billion yuan, up 34.29% year-on-year [5][6] - The global demand for packaging substrates is gradually recovering, driving the introduction of new products. The packaging substrate business achieved a revenue of 3.171 billion yuan, a year-on-year increase of 37.49%, accounting for 17.71% of total revenue [6] - The PCB business generated a revenue of 10.494 billion yuan in 2024, reflecting a year-on-year growth of 29.99%, and accounted for 58.60% of total revenue [7] - The company is capitalizing on opportunities in the computing power and automotive electronics markets, with automotive electronics orders growing over 50% for the third consecutive year [7] Financial Projections - The company is expected to achieve revenues of 21.511 billion yuan, 25.042 billion yuan, and 29.680 billion yuan in 2025, 2026, and 2027 respectively, with net profits of 2.571 billion yuan, 3.091 billion yuan, and 3.684 billion yuan for the same years [8][10] - The projected growth rates for revenue are 20.13%, 16.41%, and 18.52% for the years 2025, 2026, and 2027 respectively [10] - The earnings per share (EPS) are forecasted to be 5.01 yuan, 6.03 yuan, and 7.18 yuan for 2025, 2026, and 2027 respectively [10] Company Overview - The latest closing price of the company's stock is 138.49 yuan, with a total market capitalization of 71 billion yuan [4] - The company has a debt-to-asset ratio of 41.7% and a price-to-earnings (P/E) ratio of 50.73 [4] - The largest shareholder is China Aviation International Holdings [4]

Investment Rating - The investment rating for the company is "Buy" and is maintained [2] Core Insights - The company reported a sales revenue of 17.907 billion yuan in 2024, representing a year-on-year growth of 32.39%, and a net profit attributable to shareholders of 1.878 billion yuan, which is a 34.29% increase year-on-year [5] - The global demand for packaging substrates is gradually recovering, driving the introduction of new products. The packaging substrate business achieved a revenue of 3.171 billion yuan, up 37.49% year-on-year, accounting for 17.71% of total revenue [6] - The PCB business generated a revenue of 10.494 billion yuan in 2024, reflecting a year-on-year growth of 29.99%, and accounted for 58.60% of total revenue [7] - The company is expected to achieve revenues of 21.511 billion yuan, 25.042 billion yuan, and 29.680 billion yuan in 2025, 2026, and 2027 respectively, with net profits of 2.571 billion yuan, 3.091 billion yuan, and 3.684 billion yuan for the same years [8] Financial Summary - The company’s total market capitalization is 71 billion yuan, with a total share capital of 5.13 billion shares and a circulating share capital of 5.12 billion shares [4] - The company’s earnings per share (EPS) for 2024 is 3.66 yuan, with projected EPS of 5.01 yuan, 6.03 yuan, and 7.18 yuan for 2025, 2026, and 2027 respectively [10] - The company’s price-to-earnings (P/E) ratio is 50.73, with projected P/E ratios of 37.83, 27.63, 22.98, and 19.28 for the years 2025, 2026, and 2027 respectively [4][10]

Investment Rating - The report upgrades the investment rating of the company to "Buy" with a target price of RMB 146.81, up from the previous target price of RMB 115.00, indicating a potential upside of 14.7% from the current price of RMB 128.00 [1][3]. Core Insights - The company reported a revenue growth of 32.4% year-on-year to RMB 17.9 billion for the fiscal year 2024, exceeding both the report's and Bloomberg's consensus estimates [1][2]. - Net profit increased by 34.3% year-on-year to RMB 1.9 billion, aligning with the report's forecast but falling short of Bloomberg's consensus by 2% [1][2]. - The gross margin improved to 24.8% from 23.4% in 2023, primarily due to recovering demand, although partially offset by the ramp-up of new factory capacity [1][2]. - Revenue forecasts for fiscal years 2025 and 2026 have been raised by 15% and 21%, respectively, driven by increased capacity utilization, accelerated capital expenditures from domestic cloud vendors, and faster-than-expected penetration of high-end autonomous driving applications [1][2][6]. - Net profit forecasts for fiscal years 2025 and 2026 have been adjusted upward by 12% and 16%, respectively, despite a slight decline in gross margin due to rising production costs associated with the new Guangzhou factory [1][2]. Financial Summary - For FY24, the company expects sales revenue of RMB 21.6 billion, with a year-on-year growth of 20.3% [2][10]. - The gross margin is projected to be 25.1% in FY25 and gradually increase to 26.2% by FY27 [2][10]. - Net profit is forecasted to reach RMB 2.4 billion in FY25, reflecting a year-on-year growth of 29.4% [2][10]. - The company’s earnings per share (EPS) is expected to be RMB 4.74 in FY25, with a price-to-earnings (P/E) ratio of 27.0 [2][10]. Business Segment Performance - PCB business revenue grew by 30% to RMB 10.5 billion, driven by strong demand from data centers and automotive sectors [6]. - The gross margin for PCB business is expected to improve to 31.6% in FY24, benefiting from enhanced capacity utilization and an optimized product mix [6]. - The baseboard business saw a revenue increase of 37.5% to RMB 3.2 billion, although margins were pressured due to rising raw material costs and production ramp-up challenges [6]. Market Position - The company is positioned to benefit from the trend of self-sufficiency in the semiconductor supply chain in China, leveraging its leading position in the PCB market and expansion of FC-BGA substrate production lines [6].

Investment Rating - The report upgrades the investment rating of the company to "Buy" with a target price of RMB 146.81, up from a previous target price of RMB 115.00, indicating a potential upside of 14.7% from the current stock price of RMB 128.00 [1][3]. Core Insights - The company reported a revenue growth of 32.4% year-on-year to RMB 17.9 billion for the fiscal year 2024, exceeding both the report's and Bloomberg's consensus estimates [1][2]. - Net profit increased by 34.3% year-on-year to RMB 1.9 billion, aligning with the report's forecast but slightly below Bloomberg's consensus [1][2]. - The gross margin improved to 24.8% from 23.4% in 2023, primarily due to recovering demand, although partially offset by the ramp-up of new factory capacity [1]. - Revenue forecasts for fiscal years 2025 and 2026 have been raised by 15% and 21% respectively, driven by increased capacity utilization, accelerated capital expenditures from domestic cloud providers, and faster-than-expected penetration of high-end autonomous driving applications [1][2]. - Net profit forecasts for fiscal years 2025 and 2026 have also been increased by 12% and 16% respectively, despite a slight decline in gross margin due to rising production costs [1]. Financial Summary - For FY24, the company expects sales revenue to reach RMB 21.6 billion, with a year-on-year growth of 20.3% [2]. - The gross margin is projected to be 25.1% in FY25, with net profit expected to be RMB 2.4 billion, reflecting a 29.4% year-on-year growth [2][10]. - The company’s PCB business revenue is anticipated to grow by 25% in 2025, supported by strong demand in data centers and automotive sectors [6]. - The baseboard business is expected to see an 18% revenue increase in 2025, driven by rapid growth in storage product revenues [6]. Market Position - The company is positioned to benefit from the trend of self-sufficiency in the semiconductor industry, leveraging its leading position in the PCB market and expansion of FC-BGA substrate production lines [6].

Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Insights - In 2024, the company achieved operating revenue of 17.907 billion yuan, a year-on-year increase of 32.39%, and a net profit attributable to shareholders of 1.878 billion yuan, up 34.29% year-on-year. The gross margin and net margin were 24.83% and 10.49%, respectively, reflecting increases of 1.40 percentage points and 0.16 percentage points year-on-year [3][4]. - In Q4 2024, the company reported operating revenue of 4.858 billion yuan, a year-on-year increase of 19.51% and a quarter-on-quarter increase of 2.74%. However, the net profit attributable to shareholders was 390 million yuan, down 20.50% year-on-year and 22.22% quarter-on-quarter [3][4]. - The company's PCB business showed robust growth, with revenue of 10.494 billion yuan, a year-on-year increase of 29.99%, and a gross margin of 31.62%, up 5.07 percentage points year-on-year. Conversely, the packaging substrate business faced a decline in profitability [8]. Business Segment Summary - The PCB business demonstrated strong growth, while the packaging substrate business's profitability declined. The electronic assembly business also saw revenue growth of 2.823 billion yuan, a year-on-year increase of 33.20%, with a gross margin of 14.40%, down 0.26 percentage points year-on-year [8]. - The decline in profitability in Q4 was attributed to several factors, including a significant reduction in government subsidies, rising raw material costs, and the early-stage ramp-up of new projects affecting costs and expenses [8]. - Despite challenges in the packaging substrate business, the company experienced rapid growth due to increased demand in the communication sector, data center market, and automotive electronics, with orders from automotive electronics growing over 50% for the third consecutive year [8]. Financial Projections - The company is projected to achieve net profits of 2.531 billion yuan, 3.033 billion yuan, and 3.549 billion yuan for the years 2025, 2026, and 2027, respectively. The corresponding price-to-earnings ratios are expected to be 28.11, 23.46, and 20.05 [8].