Zhejiang Zhaolong Interconnect Technology (300913)2024-06-04 00:26Group 1: Company Overview and Market Expansion - The company is expanding its overseas market by investing in a factory in Thailand to meet international customer demands [2] - The Thai subsidiary has signed a land purchase agreement and is preparing for production, expected to commence in Q3 2024 [2][3] - The company aims to leverage its existing customer resources and technical advantages to increase market share [3] Group 2: Product Demand and Market Trends - The global demand for AI and digitalization is driving rapid growth in data centers and servers, with the high-speed interconnect market expanding quickly [3] - The company is focusing on developing 800G high-speed products, which are essential for reliable, energy-efficient, and cost-effective solutions in AI applications [3] Group 3: Impact of Raw Material Prices - Short-term fluctuations in copper prices affect the gross margin of signed orders, but the company maintains a competitive position through quality and stability [4] - The company plans to enhance product value and reduce costs through R&D and lean management to ensure sustainable development [4] Group 4: International Strategy and Cost Advantages - The company is gradually expanding its global supply chain and deepening cooperation with international partners to promote its international strategy [4] - The Thai factory benefits from tax incentives, including a certain period of corporate income tax exemption and import duty exemptions for machinery and raw materials [4] Group 5: Order Status and Revenue Guidance - The company currently has a sufficient order backlog, with capacity utilization at a good level and overall delivery times exceeding one month [5] - For 2024, the company aims to focus on high-speed, miniaturized, and high-density products in the digital communication cable sector to enhance competitiveness and accelerate business growth [5]