OLYMPIC(603920) 国元证券·2024-09-13 06:06Investment Rating - The report assigns a "Buy" rating to the company with a target price of 26 CNY per share, based on a 6-month outlook [2][8]. Core Views - The company is expected to benefit from Tesla's accelerated commercialization of autonomous driving and the development of its Dojo supercomputing capabilities, which will enhance the company's revenue elasticity [2][8]. - The company is expanding its production capacity to meet customer demand, with a total planned capacity of 700,000 square meters upon completion of its expansion projects [2][28]. - The acquisition by a state-owned enterprise is anticipated to facilitate the company's market expansion and enhance its competitive position in the domestic market [2][31]. Summary by Sections Overall View - The company is projected to achieve a neutral target price of 26 CNY per share over the next six months, with an upside target of 33 CNY per share, based on a 20x valuation for 2025 [8][14]. Core Logic Changes - The PCB industry is expected to recover in 2024, driven by the automotive and server sectors, which are projected to increase their market share [17][20]. - The demand for PCB products is anticipated to rise due to the increasing penetration of electric vehicles and advancements in autonomous driving technologies [20][21]. Company Overview - The company has been a leader in the PCB industry for nearly 40 years, producing a wide range of products including double-sided boards, multi-layer boards, and HDI boards [32][35]. - The company has established a strong presence in the automotive electronics sector, with significant sales to major clients such as Tesla and other electric vehicle manufacturers [35]. Performance Breakdown and Valuation - The company is expected to achieve a revenue growth rate of over 20% in 2024, supported by the successful rollout of its production capacity and product structure optimization [5][14]. - The projected earnings per share (EPS) for 2024 is estimated at 0.99 CNY, with a price-to-earnings (P/E) ratio of 21 [5][10].