Summary of Shennan Circuits Co Ltd Conference Call Company Overview - **Company**: Shennan Circuits Co Ltd - **Ticker**: 002916.SZ - **Industry**: Greater China Technology Hardware - **Market Cap**: Rmb62,178.5 million - **Stock Rating**: Equal-weight - **Price Target**: Rmb104.00, with an 18% downside from the current price of Rmb127.07 as of March 12, 2025 [5][3] Financial Performance - **4Q24 Results**: - Revenue: Rmb4,858 million (+3% quarter-over-quarter, +20% year-over-year) - Gross Margin (GM): 21.4% (-320bps q/q, -220bps y/y) - Operating Profit (OP): Rmb367 million (-41% q/q, +33% y/y) - Net Profit (NP): Rmb390 million (-22% q/q, -21% y/y), resulting in EPS of Rmb0.76 [8] - **2024 Annual Results**: - Revenue: Rmb17.91 billion (+32% y/y) - Net Profit: Rmb1.88 billion (+34% y/y) [2] Key Business Segments - **PCB (Printed Circuit Board)**: - Contributed 59% of total revenue at Rmb10.49 billion, up 30% y/y - GM: 31.62%, up 5.1 percentage points y/y - Growth driven by demand for 400G switches, AI server shipments, recovery in traditional cloud, and automotive projects [8] - **IC Substrate**: - Contributed 18% of total revenue at Rmb3.17 billion, up 37% y/y - GM: 18.15%, down 5.7 percentage points y/y - GM decline attributed to ramp-up of Guangzhou facilities, higher raw material costs, and pricing pressure [8] - **PCBA (Printed Circuit Board Assembly)**: - Contributed 16% of total revenue at Rmb2.82 billion, up 33% y/y - GM: 14.4%, approximately flat y/y [8] Market Outlook and Valuation - **Current Valuation**: Approximately 35x 2025 estimated P/E, above the 4-year average of 28x, indicating a fair valuation [3] - **Investment Thesis**: While NP recovery is encouraging, the positives are believed to be largely priced in, leading to a recommendation to stay Equal-weight [3] Risks and Opportunities - **Upside Risks**: - Rising demand for 5G and data center PCBs - Increased market share in 5G and data center PCBs - Growth in IC substrate demand due to semiconductor localization in China [11] - **Downside Risks**: - Delays in 5G network deployment - Escalating US-China trade tensions - Increased competition in the PCB market [11] Additional Insights - The gross margin miss in 4Q24 is attributed to lower utilization rates of substrate capacity and ongoing pricing pressures for BT substrates [8] - The company is experiencing solid demand across various sectors, including automotive and AI, which may provide growth opportunities moving forward [8] This summary encapsulates the key points from the conference call regarding Shennan Circuits Co Ltd, highlighting its financial performance, market outlook, and potential risks and opportunities.

公司点评 深南电路(002916.SZ) | 2025 年 03 月 13 日 | | | --- | --- | | 评级 | 买入 | | | 评级变动 维持 | | 交易数据 | | | 当前价格（元） | 127.07 | | 52 周价格区间（元） | 83.01-160.55 | | 总市值（百万） | 65171.35 | | 流通市值（百万） | 65003.21 | | 总股本（万股） | 51287.75 | | 流通股（万股） | 51155.43 | 涨跌幅比较 % 1M 3M 12M 深南电路 -6.44 28.31 43.58 元件 2.04 11.69 45.88 何晨 分析师 执业证书编号:S0530513080001 hechen@hnchasing.com 袁鑫 研究助理 -12% 38% 88% 138% 2024-03 2024-06 2024-09 2024-12 深南电路 元件 yuanxin@hnchasing.com 相关报告 1 深南电路 2024 年三季报点评：营收保持高增 长，新项目爬坡拉低利润增速 2024-10-29 2 深南电路 2024 年半年报点 ...

Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expectation of stock performance that exceeds market performance by 10% to 20% over the next six months [15]. Core Insights - The company achieved significant growth in 2024, with revenue reaching 17.907 billion yuan, a year-on-year increase of 32.39%, and a net profit of 1.878 billion yuan, up 34.29% year-on-year [4][5]. - The overall gross margin and net margin for 2024 were 24.83% (up 1.40 percentage points year-on-year) and 10.49% (up 0.16 percentage points year-on-year), respectively [5]. - The company is capitalizing on opportunities arising from the growth in AI technology, the demand for high-speed network communication, and the ongoing trends in automotive electrification and intelligence [5]. - The company is focusing on digitalization and smart manufacturing to enhance operational efficiency and reduce costs [5]. Financial Performance Summary - In 2024, the PCB business generated revenue of 10.494 billion yuan, a 29.99% increase year-on-year, accounting for 58.60% of total revenue, with a gross margin of 31.62% [5]. - The IC substrate business reported revenue of 3.171 billion yuan, a 37.49% increase year-on-year, representing 17.71% of total revenue, with a gross margin of 18.15% [5]. - The electronic assembly business achieved revenue of 2.823 billion yuan, a 33.20% increase year-on-year, contributing 15.76% to total revenue, with a gross margin of 14.40% [5]. - The company’s operating expenses showed effective cost control, with sales, management, R&D, and financial expense ratios remaining within 1 percentage point of the previous year [5]. Future Projections - Revenue is projected to grow to 22.205 billion yuan in 2025, with a year-on-year growth rate of 24.0% [7]. - Net profit is expected to reach 2.609 billion yuan in 2025, reflecting a year-on-year increase of 38.9% [7]. - The gross margin is anticipated to improve to 25.5% in 2025, while the net margin is expected to rise to 11.7% [7]. Market Position and Strategy - The company is recognized as a leading domestic IC substrate enterprise, benefiting from domestic substitution trends [11]. - The company is actively expanding its production capabilities, including projects in Thailand and Nantong, to support future business growth [11]. - The company is focusing on enhancing its product offerings in the automotive electronics sector, with orders growing over 50% for three consecutive years [9].

Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expectation of stock performance that exceeds market performance by 10% to 20% over the next six months [12]. Core Insights - The company achieved significant growth in 2024, with revenue reaching 17.907 billion yuan, a year-on-year increase of 32.39%, and a net profit of 1.878 billion yuan, up 34.29% year-on-year [4][5]. - The overall gross margin and net margin for 2024 were 24.83% (up 1.40 percentage points YoY) and 10.49% (up 0.16 percentage points YoY), respectively [5]. - The company is capitalizing on opportunities arising from the growth in AI technology, electric vehicle trends, and the recovery of the general server market [5]. - The company is focusing on digitalization and smart manufacturing to enhance competitiveness and control costs [5]. Financial Performance Summary - **Revenue Breakdown**: - PCB business: Revenue of 10.494 billion yuan, up 29.99% YoY, accounting for 58.60% of total revenue with a gross margin of 31.62% [5]. - IC substrate business: Revenue of 3.171 billion yuan, up 37.49% YoY, accounting for 17.71% of total revenue with a gross margin of 18.15% [5]. - Electronic assembly business: Revenue of 2.823 billion yuan, up 33.20% YoY, accounting for 15.76% of total revenue with a gross margin of 14.40% [5]. - **Cost Control**: The company maintained stable expense ratios across sales, management, R&D, and financial expenses, all within a 1 percentage point change [5]. - **Future Projections**: The company expects continued revenue growth, with projected revenues of 22.205 billion yuan in 2025, 27.534 billion yuan in 2026, and 34.143 billion yuan in 2027, reflecting a compound annual growth rate of 24% [6][10]. Financial Ratios - **Profitability**: The projected gross margin is expected to improve to 25.5% in 2025 and 26.0% in 2026, with net margin reaching 11.7% and 12.5% respectively [10]. - **Return on Equity (ROE)**: Expected to increase from 12.8% in 2024 to 15.7% in 2025 and further to 18.8% by 2027 [10]. - **Valuation Metrics**: The price-to-earnings (P/E) ratio is projected to decrease from 37.9 in 2024 to 27.3 in 2025, indicating improving valuation as earnings grow [10].

Investment Rating - The investment rating for the company is "Buy" with the rating maintained [1][10] Core Views - The company is expected to benefit from the ongoing demand in the AI-related industry for PCB products, and the strong domestic substitution demand for packaging substrates [8] - The company's PCB business achieved a revenue of 104.94 billion yuan in 2024, representing a year-on-year growth of 29.99% [6] - The packaging substrate business generated a revenue of 31.71 billion yuan in 2024, with a year-on-year increase of 37.49% [6] Financial Summary - The company's projected revenue for 2023A is 135.26 billion yuan, increasing to 179.07 billion yuan in 2024A, and expected to reach 215.05 billion yuan in 2025E [9] - The net profit attributable to the parent company is projected to grow from 13.98 billion yuan in 2023A to 18.78 billion yuan in 2024A, and further to 27.01 billion yuan in 2025E [9] - The earnings per share (EPS) is expected to rise from 2.73 yuan in 2023A to 3.66 yuan in 2024A, and to 5.27 yuan in 2025E [9] Business Performance - The company's PCB business is experiencing steady growth, driven by demand in the communication, data center, and automotive electronics sectors [6][7] - The gross margin for the PCB business in 2024 was 31.62%, an increase of 5.07 percentage points year-on-year [6] - The packaging substrate business is focusing on capability building and market development, with new product introductions ongoing [7]

%% %% %% %% research.95579.com 丨证券研究报告丨 公司研究丨点评报告丨深南电路（002916.SZ） [Table_Title] 深南电路 2024 年报点评：载板业务短期承压， PCB 业务稳健高增 报告要点 [Table_Summary] 深南电路发布 2024 年年报：2024 年，公司实现营业收入 179.07 亿元，同比+32.39%；实现 归母净利润 18.78 亿元，同比+34.29%；分别实现毛利率和净利率 24.83%和 10.49%，同比 +1.40pct 和 0.16pct。单四季度来看，公司实现营业收入 48.58 亿元，同比+19.51%、环比 +2.74%；实现归母净利润 3.90 亿元，同比-20.50%、环比-22.22%。从盈利能力来看，公司 24Q4 分别实现毛利率和净利率 21.95%和 8.04%，分别同比-2.23pct 和-4.00pct、环比-3.45pct 和-2.55pct。 分析师及联系人 [Table_Author] 杨洋 SAC：S0490517070012 SFC：BUW100 请阅读最后评级说明和重要声明 1 深南电路（ ...

Investment Rating - The investment rating for the company is "Strongly Recommended" [1] Core Views - The company reported a total revenue of 17.91 billion with a year-on-year increase of 32.4%, and a net profit attributable to shareholders of 1.88 billion, up 34.3% year-on-year [1] - The company is expected to benefit from the increasing demand for AI computing power and advanced packaging substrates, leading to high growth in its business [5] - The company plans to distribute a cash dividend of 15 yuan per 10 shares and increase capital by 3 shares for every 10 shares held [1] Financial Performance - The company's PCB business generated 10.49 billion, a year-on-year increase of 30%, accounting for 58.6% of total revenue, with a gross margin of 31.6% [5] - The substrate business achieved 3.17 billion, a year-on-year increase of 37.5%, accounting for 17.7% of total revenue, but experienced a decline in profitability due to rising raw material costs [5] - The PCBA business reported 2.82 billion, a year-on-year increase of 33.2%, accounting for 15.8% of total revenue [5] Quarterly Performance - In Q4, the company reported revenue of 4.86 billion, a year-on-year increase of 19.5%, but a net profit of 390 million, down 20.5% year-on-year [5] - The decline in Q4 net profit was primarily due to increased losses in the ABF substrate business and a shift in business structure [5] Future Outlook - The company is expected to see rapid growth in high-end capacity due to the rising domestic demand for computing power and advanced packaging substrates [5] - Revenue forecasts for 2025-2027 are projected at 21.53 billion, 25.44 billion, and 29.28 billion respectively, with net profits of 2.49 billion, 3.07 billion, and 3.63 billion [5]

Group 1: Company Performance Overview - In 2024, the company achieved total revenue of 17.907 billion CNY, a year-on-year increase of 32.39% [1] - Net profit attributable to shareholders reached 1.878 billion CNY, up 34.29% year-on-year [1] - Non-recurring net profit was 1.740 billion CNY, showing a significant growth of 74.34% [1] Group 2: PCB Business Insights - PCB business revenue was 10.494 billion CNY, a growth of 29.99%, accounting for 58.60% of total revenue [1] - PCB gross margin improved to 31.62%, an increase of 5.07 percentage points [2] - Key growth drivers included demand from high-speed communication (400G and above), AI servers, and automotive electronics [2] Group 3: Packaging Substrate Business - The packaging substrate business generated revenue of 3.171 billion CNY, a 37.49% increase, representing 17.71% of total revenue [1] - Gross margin for this segment decreased to 18.15%, down 5.72 percentage points due to rising raw material costs and fluctuating market demand [3] Group 4: R&D and Capacity Utilization - R&D investment for 2024 was 1.272 billion CNY, constituting 7.10% of total revenue [7] - PCB business capacity utilization remains high due to sustained demand in computing and automotive electronics [8] - The company is expanding production capacity in Shenzhen, Wuxi, Nantong, and Thailand to meet market needs [9] Group 5: Product Development and Market Trends - The company has developed FC-BGA packaging substrates with production capabilities for up to 16 layers and sample production for 18 and 20 layers [4] - The Guangzhou packaging substrate project is in the early stages of ramp-up, focusing on capacity building [5] - PTFE materials are being explored for high-frequency PCB applications, with existing products in communication and automotive ADAS sectors [10]

—— 2024 年年报点评 维持评级 高峰 钱德胜 | 市场数据 | 2025-03-13 | | --- | --- | | 股票代码 | 002916.SZ | | A 股收盘价(元) | 128.00 | | 上证指数 | 3358.73 | | 总股本(万股) | 51,287.75 | | 实际流通 A 股(万股) | 51,155.43 | | 流通 A 股市值(亿元) | 655 | -20% 0% 20% 40% 60% 80% 100% 300 ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ · 电子行业 | | 2024A | 2025E | 2026E | 2027E | | --- | --- | --- | --- | --- | | 营业收入(百万元) | 17907.45 | 21921.86 | 26598.97 | 29835.03 | | 收入增长率% | 32.39 | 22.42 | 21.34 | 12.17 | | 归母净利润(百万元) | 1877.57 | 2372.82 | 2801.21 | 3232.48 | | 利润增速% | 34.29 | 26.38 | 18.05 | 1 ...

—— 2024 年年报点评 维持评级 高峰 钱德胜 | 市场数据 | 2025-03-13 | | --- | --- | | 股票代码 | 002916.SZ | | A 股收盘价(元) | 128.00 | | 上证指数 | 3358.73 | | 总股本(万股) | 51,287.75 | | 实际流通 A 股(万股) | 51,155.43 | | 流通 A 股市值(亿元) | 655 | -20% 0% 20% 40% 60% 80% 100% 300 ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ · 电子行业 | | 2024A | 2025E | 2026E | 2027E | | --- | --- | --- | --- | --- | | 营业收入(百万元) | 17907.45 | 21921.86 | 26598.97 | 29835.03 | | 收入增长率% | 32.39 | 22.42 | 21.34 | 12.17 | | 归母净利润(百万元) | 1877.57 | 2372.82 | 2801.21 | 3232.48 | | 利润增速% | 34.29 | 26.38 | 18.05 | 1 ...