DSBJ(002384) Huafu Securities·2024-10-29 04:01Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the market benchmark within the next six months [9]. Core Views - The company achieved a revenue of 26.466 billion yuan in the first three quarters of 2024, representing a year-on-year increase of 17.62%. However, the net profit attributable to shareholders decreased by 19.91% to 1.067 billion yuan [1]. - The report highlights the strong growth potential of Flexible Printed Circuits (FPC) in the consumer electronics sector, particularly due to trends towards lightweight and foldable devices, which are expected to drive demand for FPC [1]. - The company is positioned as a core supplier of FPC, which is anticipated to benefit significantly from the ongoing innovation wave in consumer electronics, especially with the rise of AI functionalities [1]. Financial Performance Summary - For 2024, the company is projected to generate revenues of 37.2 billion yuan, with net profits expected to reach 2.037 billion yuan, reflecting a growth rate of 4% [2][5]. - The earnings per share (EPS) is forecasted to be 1.19 yuan for 2024, with a price-to-earnings (P/E) ratio of 21.9 [2][5]. - The company’s gross margin for Q3 2024 was reported at 14.65%, showing stability compared to the previous year [1]. Revenue and Profit Forecast - Revenue projections for 2024-2026 are set at 37.2 billion, 43.6 billion, and 49.8 billion yuan respectively, while net profit forecasts are 2.037 billion, 2.933 billion, and 3.819 billion yuan [1][2]. - The report indicates a consistent growth trajectory, with expected revenue growth rates of 11%, 17%, and 14% for the respective years [2][5]. Market Position and Competitive Advantage - The company is recognized for its leading position in the industry, with expectations to benefit from the AI wave at the end-user level, enhancing its competitive edge [1]. - The report emphasizes the company's effective cost control and customer structure, which have contributed to maintaining its gross margin despite currency fluctuations [1].