JONES TECH PLC(300684) 东吴证券·2024-05-25 08:02Investment Rating - The report gives a "Buy" rating for the company, with a target PE of 38.6/25.3/17.4 for 2024-2026 [60][190] Core Views - The thermal management industry is experiencing rapid growth, driven by AI and 5G advancements, with the global thermal management materials market expected to grow from 13.98 billion by 2028, at a CAGR of 3.2% [10][49] - The company is a leader in thermal management solutions, with a strong presence in consumer electronics, communication, automotive electronics, and clean energy sectors [44][60] - AI-driven demand for advanced thermal solutions in smartphones, AI PCs, and optical modules is creating significant growth opportunities for the company [50][60] Market Analysis Thermal Management Industry - The global thermal management materials market is projected to grow at a CAGR of 3.2% from 2022 to 2028, reaching 20 billion by 2026 [170][173] - The thermal management market for optical modules is expected to grow from 390 million by 2026, driven by higher data transmission rates and integration [29][173] Company Analysis Financial Performance - The company reported revenue of RMB 1.258 billion in 2023, a 21% decline YoY, with net profit dropping 61.9% to RMB 73.76 million [199] - For 2024-2026, the company is expected to achieve revenue of RMB 1.58 billion, RMB 2.05 billion, and RMB 2.52 billion, with net profits of RMB 135.16 million, RMB 207.01 million, and RMB 301.98 million, respectively [49][190] Product and Market Position - The company is a leading provider of thermal management solutions, with products including thermal interface materials, EMI shielding materials, and other thermal management components [44][60] - It holds a 7.2% market share in China's thermal management materials market, competing with international players like Bergquist and Laird [45][176] Strategic Initiatives - The company is expanding its production capacity with a RMB 831 million investment in 5G thermal management modules, expected to generate annual profits of RMB 260 million upon completion [36] - It is also investing in overseas expansion, with a new production base in Thailand to meet growing demand and reduce supply chain risks [182] Competitive Advantages - The company has strong R&D capabilities, with expertise in high-temperature carbon material sintering, functional polymer composites, and two-phase heat transfer technologies [46][184] - It has established long-term relationships with key clients in the communication and consumer electronics sectors, including Huawei [46][181]