弘信电子：FPC业务拐点将临，AI算力加速前进

Investment Rating - The report initiates coverage with a "Buy" rating for the company [5] Core Views - The company is a leading FPC manufacturer in China with over 20 years of experience in the industry, and it has recently expanded into AI computing power business, including server manufacturing and leasing [2] - The FPC business is expected to reach an inflection point due to the increasing demand for consumer electronics upgrades, particularly in smartphones, foldable devices, and automotive electronics [3] - The AI computing power business has become the company's second growth driver, with significant potential for expansion as the global demand for AI infrastructure grows [4] Financial Projections - The company's revenue is projected to grow from 6.566 billion yuan in 2024 to 10.966 billion yuan in 2026, with a CAGR of 25.9% [5] - Net profit attributable to shareholders is expected to increase from 61 million yuan in 2024 to 532 million yuan in 2026, with a CAGR of 71.7% [5] FPC Business - The company has a diversified customer base in the FPC industry, including major smartphone manufacturers and automotive electronics companies [3] - The FPC business is expected to benefit from the technological upgrades in consumer electronics, such as AI smartphones, foldable devices, and automotive electronics [3] - The company has shifted its strategy to focus on high-value orders, which is expected to drive profitability improvements [3] AI Computing Power Business - The company has established partnerships with key players in the AI computing power industry, including Suiyuan Technology and Anlian Tong, to develop and manufacture AI servers [4] - The company has built AI computing power centers in Gansu Province, with a total computing power of over 3,000 PFlops, and plans to expand further [4] - The AI computing power business is expected to contribute significantly to the company's revenue growth, with a projected revenue share of 36.44% in 2024 [36] Industry Trends - The global FPC market is highly competitive, with major players concentrated in Japan and China [47] - The demand for FPC is expected to grow due to the increasing adoption of AI smartphones, foldable devices, and automotive electronics [54] - The AI computing power industry is experiencing rapid growth, driven by the increasing demand for AI infrastructure and the need for domestic alternatives to foreign GPUs [85] Strategic Partnerships - The company has formed strategic partnerships with Suiyuan Technology, Anlian Tong, and other key players in the AI computing power industry to develop and manufacture AI servers [4] - The company has also partnered with local governments in Gansu Province to build AI computing power centers and support the "East Data West Computing" project [4] Financial Performance - The company's revenue has grown from 2.792 billion yuan in 2022 to 3.478 billion yuan in 2023, with a projected growth to 6.566 billion yuan in 2024 [10] - The company's net profit attributable to shareholders has improved from a loss of 308 million yuan in 2022 to a projected profit of 61 million yuan in 2024 [10]