Avary Holding(002938) 国盛证券·2025-04-23 07:36Investment Rating - The report initiates coverage with a "Buy" rating for the company [4] Core Views - The company is a leading player in the PCB industry with a diverse product portfolio, including FPC, SMA, SLP, HDI, Mini LED, RPCB, and Rigid Flex, serving various sectors such as communication electronics, consumer electronics, automotive, and servers [1][15] - The company has expanded its production capacity and geographical footprint, establishing manufacturing bases in Shenzhen, Qinhuangdao, Huai'an, and India, which enhances its competitive position globally [14][15] - The automotive and server markets present significant growth opportunities, with the company focusing on high-end products and expanding its production capacity to meet increasing demand [3][4] Summary by Sections 1. Company Overview - The company was established in 1999 and has been listed on the Shenzhen Stock Exchange since 2018, continuously expanding its production capacity and solidifying its market position [1][14] - It ranks as the largest PCB manufacturer globally for eight consecutive years from 2017 to 2024 according to Prismark [2][14] 2. Market Trends - The FPC market is experiencing increased demand due to the rise of AI functionalities in consumer electronics, leading to higher design complexities and a growing need for high-density interconnects [2][3] - The automotive sector is witnessing a surge in demand for PCBs driven by the increasing number of sensors and the trend towards electric vehicles, with a notable growth in sales of new energy vehicles in China [3][4] 3. Financial Performance - The company is projected to achieve revenues of 40.87 billion, 46.58 billion, and 51.99 billion yuan in 2025, 2026, and 2027 respectively, with year-on-year growth rates of 16%, 14%, and 12% [4][5] - The net profit attributable to the parent company is expected to reach 4.49 billion, 5.29 billion, and 6.06 billion yuan for the same years, reflecting growth rates of 24%, 18%, and 14% [4][5] 4. Product and Market Segmentation - The company’s product lines cater to various applications, including communication boards primarily for smartphones, consumer electronics, and automotive and server applications [15][18] - The automotive and server segments are expected to contribute significantly to revenue growth, with automotive and server boards projected to generate 10.25 billion yuan in 2024, a year-on-year increase of 90.34% [3][32] 5. Investment Recommendations - The report suggests that the company has a valuation advantage with projected P/E ratios of 15, 12, and 11 for 2025, 2026, and 2027 respectively, indicating a favorable investment opportunity [4][5]