DSBJ(002384) Soochow Securities·2024-10-31 15:38Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - Despite short-term impacts from exchange rate fluctuations and price reductions in older products, the launch of new models is expected to gradually enhance performance [2] - The smartphone market recovery, coupled with the development of AI phones, is anticipated to drive both volume and price increases for Flexible Printed Circuits (FPC) [3] - The release of production capacity in the electric vehicle sector is likely to become a new profit growth driver for the company [4] - The company is projected to experience significant growth in its PCB business driven by major clients, with adjusted net profit forecasts for 2024 and 2025 being lowered due to short-term challenges [4] Financial Performance Summary - In the first three quarters, the company achieved revenue of 26.47 billion yuan, a year-on-year increase of 18%, and a net profit attributable to shareholders of 1.07 billion yuan, up 20% year-on-year [2] - For Q3 alone, revenue reached 9.84 billion yuan, reflecting an 11% year-on-year increase and an 11% quarter-on-quarter increase, while net profit was 510 million yuan, down 0.3% year-on-year but up 87% quarter-on-quarter [2] - The company's revenue forecast for 2024 is set at 34.53 billion yuan, with a projected net profit of 1.73 billion yuan [1][4] Market Position and Future Outlook - The company has become a key supplier of system boards for major North American clients, which is expected to enhance its revenue per unit as new materials are introduced [3] - The electric vehicle business is projected to generate revenue of 6.4 billion yuan in 2023, a year-on-year increase of 168%, with further growth anticipated as the penetration rate of electric vehicles accelerates [4] - The report anticipates that the company's net profit will reach 3.5 billion yuan by 2026, supported by growth in soft board business and demand from AI in the consumer electronics supply chain [4]