VGT(300476) 华创证券·2024-10-29 17:07Investment Rating - The report maintains a "Strong Buy" rating for Shenghong Technology with a target price of 58.3 RMB, compared to the current price of 45.67 RMB [1] Core Views - Shenghong Technology's Q3 2024 performance showed rapid improvement, with revenue reaching 2.842 billion RMB (YoY +37.07%, QoQ +15.36%) and net profit attributable to the parent company of 306 million RMB (YoY +26.70%, QoQ +22.52%) [1] - The company's AI business is expected to drive accelerated growth, with high-end AI data center computing products and 1.6T optical modules entering mass production [2] - Automotive electrification and intelligence are driving steady growth in the automotive business, with the company being a top 2 PCB supplier for the world's largest electric vehicle customer [2] Financial Performance - For the first three quarters of 2024, the company achieved revenue of 7.698 billion RMB (YoY +34.02%) and net profit attributable to the parent company of 765 million RMB (YoY +30.54%) [1] - The company's gross margin in Q3 2024 was 23.17%, an increase of 1.48 percentage points quarter-over-quarter [2] - R&D expenses reached a historical high in Q3 2024, reflecting the company's deep layout in AI, communications, and other high-end fields [2] Business Development - The company has successfully developed and applied next-generation technologies such as PCIe 6.0 protocol, 800G/1.6T optical transmission, and 6G communications [2] - Process capabilities have been optimized, including the completion of equipment optimization and transformation for high multilayer precision HDI 5.0mm and high multilayer PCB 8.0mm thick boards [2] - The company has introduced several international Tier 1 automotive customers and developed products for L3/L4 autonomous driving technologies [2] Industry Outlook - AI computing power and automotive applications are driving a new round of growth in the PCB industry [2] - The company, as a leading domestic PCB manufacturer, is expected to benefit deeply from this industry development cycle by serving top customers in data communication and automotive fields [2] Financial Projections - The report forecasts revenue of 11.584 billion RMB for 2024, 14.851 billion RMB for 2025, and 18.621 billion RMB for 2026 [3] - Net profit attributable to the parent company is projected to be 1.254 billion RMB in 2024, 2.009 billion RMB in 2025, and 2.702 billion RMB in 2026 [3] - EPS is expected to grow from 1.45 RMB in 2024 to 3.13 RMB in 2026 [3]