Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 58.8 CNY, compared to the current price of 37.09 CNY [5][24]. Core Insights - The company plans to fully acquire Solstice Optoelectronics for a maximum consideration of 629 million USD, which is expected to open a third growth curve for the company [2][3]. - The acquisition is anticipated to enhance the company's position in the optical communication sector, which is projected to experience significant growth due to increasing demand for high-speed optical modules [9][10]. - The company has a solid foundation in its PCB business and is expected to benefit from new product iterations in AI smartphones and foldable screens, as well as a growing automotive business [9][10]. Financial Summary - Total revenue is projected to grow from 36,770 million CNY in 2024 to 60,418 million CNY in 2027, with a compound annual growth rate (CAGR) of approximately 19.8% from 2024 to 2025 [4][10]. - Net profit is expected to rebound significantly from 1,086 million CNY in 2024 to 6,032 million CNY in 2027, reflecting a growth rate of 178.0% in 2025 [4][10]. - Earnings per share (EPS) is forecasted to increase from 0.64 CNY in 2024 to 3.54 CNY in 2027, indicating strong profitability growth [4][10]. - The company’s price-to-earnings (P/E) ratio is projected to decrease from 58 in 2024 to 10 in 2027, suggesting an attractive valuation as earnings grow [4][10].

Group 1 - The company, Dongshan Precision, announced a private placement of A-shares to raise a total of 1.404 billion RMB, with a net amount of approximately 1.392 billion RMB after deducting issuance costs [1][3] - The raised funds will primarily be used to supplement working capital and meet the funding needs arising from business development, enhancing the company's sustainable development capabilities [3] - The company emphasized that the completion of this issuance will not result in significant changes to its main business scope or revenue structure [3] Group 2 - On June 15, Dongshan Precision announced plans to acquire 100% of the shares of global optical communication module manufacturer, Solstice Optoelectronics, for no more than 5.935 billion RMB, marking its entry into the optical communication field [5] - The acquisition is expected to facilitate the strategic upgrade of the company and promote collaborative development across its business segments, including consumer electronics, new energy vehicles, and optical communication [5] - Dongshan Precision is involved in the research, production, and sales of electronic circuit products, precision components, touch display modules, and LED display devices, serving various industries such as consumer electronics, new energy vehicles, communication equipment, industrial equipment, AI, and medical devices [5] Group 3 - Starting in 2024, the company initiated internal reforms in its LED business, establishing a low-cost production model, with positive results already visible in the first quarter of 2025 [6] - The company is actively optimizing its business structure by shifting sales strategies from reliance on distributors to focusing on engineering clients, thereby increasing the proportion of high-margin products [7] - The company plans to expand its product line to meet technological upgrade demands in areas such as TV backlighting, continuously launching new products to drive significant loss reduction and achieve sustainable development in its LED business [7]

Market Overview - The Shanghai Composite Index fell by 0.79% on June 19, with only one industry rising, which was the petroleum and petrochemical sector, up by 0.86% [2] - The textile and apparel, as well as beauty care industries, experienced the largest declines, down by 2.36% and 2.28% respectively [2] - The electronic industry also saw a decrease of 0.59% [2] Capital Flow - There was a net outflow of 51.66 billion yuan from the main funds across the two markets, with only three industries seeing net inflows [2] - The media industry had a net inflow of 182 million yuan, followed by the petroleum and petrochemical industry with 133 million yuan, and the home appliance industry with 295,150 yuan [2] - The electronic industry had the largest net outflow, totaling 5.408 billion yuan, followed by the non-bank financial sector with a net outflow of 4.807 billion yuan [2] Electronic Industry Performance - Within the electronic industry, there are 462 stocks, with 118 rising and 340 falling; three stocks hit the daily limit up while one hit the limit down [3] - A total of 133 stocks in the electronic sector saw net inflows, with six stocks having inflows exceeding 50 million yuan [3] - The top stock for net inflow was Northern Huachuang, with an inflow of 248 million yuan, followed by Lanke Technology and Zhongjing Electronics with inflows of 138 million yuan and 114 million yuan respectively [3] Electronic Industry Capital Inflow and Outflow - The top stocks for capital inflow included Northern Huachuang, Lanke Technology, and Zhongjing Electronics, with respective inflows of 248.39 million yuan, 138.38 million yuan, and 113.76 million yuan [4] - The stocks with the largest capital outflows included Dongshan Precision, with an outflow of 564.43 million yuan, followed by Xuguang Electronics and Luxshare Precision with outflows of 247.22 million yuan and 217.88 million yuan respectively [5]

Investment Rating - The report maintains an "Outperform" rating for the communication industry, indicating an expected performance exceeding the benchmark index by more than 10% [1][41]. Core Insights - AMD has launched the MI350 series GPUs and showcased plans for the MI400 series, intensifying competition among the "AI Triad" in North America [2][14]. - The data center AI accelerator market is projected to grow over 60% annually, reaching $500 billion by 2028, with inference market growth expected to outpace training [2][14]. - The report highlights the ongoing valuation recovery in the overseas computing chain, driven by improved earnings confidence for 2026 and a return of value funds [3][15]. - The GTC Paris summit emphasized the importance of sovereign AI and industrial cloud as significant growth areas for computing power in Europe [4][15]. - The report suggests focusing on companies within the computing power supply chain, particularly in edge computing and endpoint devices [5][16]. Summary by Sections Industry Dynamics - AMD's MI350 series features 185 billion transistors and 288GB HBM3e, with performance improvements over the MI300 series exceeding 100% [2][14]. - The MI350X and MI355X GPUs demonstrate up to 35 times the inference performance of the MI300X [2][14]. - The report notes that the European market is becoming a key area for AI deployment, with significant investments in sovereign AI systems [4][15]. Mergers and Acquisitions - East Mountain Precision announced plans to acquire Source Photonics for up to $629 million, indicating a trend of consolidation in the optical communication sector [5][16][17]. - Source Photonics reported a revenue of 2.93 billion and a net profit of 400 million for 2024, with a 32% year-on-year growth in Q1 revenue [7][17]. Market Performance - The overall market saw a decline during the week of June 9-13, 2025, with the communication index dropping by 0.78% [8][18]. - The optical module sector showed resilience with a weekly increase of 3.12%, indicating strong performance amidst broader market challenges [8][18].

Group 1 - The three major indices experienced a significant adjustment, with the Shanghai Composite Index down 0.79%, the Shenzhen Component down 1.21%, and the ChiNext Index down 1.36%. Over 600 stocks rose, with a total trading volume of approximately 1.25 trillion yuan [2] - Oil and gas concept stocks surged, with Shouhua Gas rising by 20%, Tongyuan Petroleum up over 11%, and other companies like Junyou Co., Zhongman Petroleum, and CNOOC Services also seeing gains. The rise in international oil prices is attributed to the conflict between Iran and Israel, with potential U.S. intervention leading to further price increases [2] - The film and television industry saw strong performance, with companies like Baina Qiancheng and Ciweng Media rising by 20% and 10% respectively. Baina Qiancheng signed a film authorization contract worth 372 million yuan, which is expected to significantly boost its 2025 performance [2] Group 2 - The semiconductor and PCB sectors also showed strength, with Juxin Technology rising by 13.8% and Nord Shares by 10%. A recent report from CITIC Securities highlighted the challenges in obtaining advanced manufacturing and packaging capacity overseas, indicating a strong demand and weak supply situation in the domestic semiconductor industry [3] - The previously popular sectors such as controlled nuclear fusion, rare earth permanent magnets, and digital currency saw declines, with companies like Hezhong Intelligent and Hailian Jinhui dropping by 10% and over 7% respectively [3][4] - Other sectors including non-ferrous metals, healthcare, real estate, and securities also weakened, with companies like Dongfang Caifu and Vanke A experiencing declines [4]

Group 1 - The core point of the news is that Dongshan Precision plans to acquire 100% of Source Photonics for a total investment not exceeding 5.93 billion RMB (approximately 6.29 billion USD) [2][3] - The acquisition aims to expand Dongshan Precision's business in the optical communication sector, with Source Photonics specializing in the design, development, manufacturing, and sales of optical communication modules and components [3] - The transaction will be structured as a combination of equity acquisition, employee stock option program (ESOP) acquisition, and convertible bond subscription, with the total investment amounting to no more than 5.93 billion RMB [4][7] Group 2 - Source Photonics is expected to generate revenue of 2.93 billion RMB and a net profit of 405 million RMB in 2024, with projected revenue of 975 million RMB and net profit of 156 million RMB for the first quarter of 2025 [4] - Dongshan Precision's investment includes a subscription for convertible bonds not exceeding 1 billion RMB, aimed at supporting Source Photonics' operational needs and repaying previous convertible bonds [4][7] - The acquisition follows a recently terminated acquisition attempt by Wantong Development, which had aimed to acquire a 60.16% stake in Source Photonics but was halted due to changes in the transaction environment [7][8]

证券简称：东山精密 证券代码：002384 苏州东山精密制造股份有限公司 Suzhou Dongshan Precision Manufacturing Co., Ltd. 本公司全体董事、监事及高级管理人员承诺本发行情况报告书不存在虚假记 载、误导性陈述或重大遗漏，并对其真实性、准确性、完整性承担相应的法律责 任。全体董事： 公司全体董事及高级管理人员签名： 袁永刚 袁永峰 赵秀田 单建斌 冒小燕 王 旭 王章忠 宋利国 高永如 公司全体监事： 马力强 计亚春 黄勇鑫 苏州东山精密制造股份有限公司 年 月 日 （苏州吴中经济开发区善丰路 288 号） 向特定对象发行 A 股股票 发行情况报告书 保荐人（主承销商） （中国（上海）自由贸易试验区商城路 618 号） 二〇二五年六月 发行人全体董事、监事、高级管理人员声明 1-1 1-2 1-3 1-4 1-5 1-6 1-7 1-8 1-9 | 目 录 | 10 | | --- | --- | | 释 义 | 11 | | 第一节 | 本次发行的基本情况 12 | | | 一、本次发行履行的相关程序 12 | | | 二、本次发行概要 13 | | | 三、本 ...

关于向特定对象发行 A 股股票发行情况披露的提示性公告 证券代码：002384 证券简称：东山精密 公告编号：2025-041 苏州东山精密制造股份有限公司 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假 记载、误导性陈述或重大遗漏。 苏州东山精密制造股份有限公司（以下简称"公司"）向特定对象发行 A 股 股票发行承销总结及相关文件已在深圳证券交易所备案通过，公司将依据相关规 定尽快办理本次发行新增股份的登记托管事宜。 具体内容详见公司同日刊登在巨潮资讯网（www.cninfo.com.cn）的《苏州 东山精密制造股份有限公司向特定对象发行 A 股股票发行情况报告书》及相关文 件。敬请广大投资者注意查阅。 特此公告。 苏州东山精密制造股份有限公司董事会 2025 年 6 月 17 日 ...

国泰海通证券股份有限公司 关于苏州东山精密制造股份有限公司 向特定对象发行股票 发行过程和认购对象合规性的报告 保荐人（主承销商） 二〇二五年六月 1 国泰海通证券股份有限公司 关于苏州东山精密制造股份有限公司 向特定对象发行股票发行过程和认购对象合规性的报告 根据中国证券监督管理委员会（以下简称"中国证监会"）《关于苏州东山精 密制造股份有限公司向特定对象发行股票注册的批复》（证监许可〔2025〕911 号），同意苏州东山精密制造股份有限公司（以下简称"东山精密"、"发行人" 或"公司"）向特定对象发行股票的注册申请。 国泰海通证券股份有限公司（以下简称"国泰海通"或"保荐人（主承销商）"） 作为东山精密向特定对象发行股票（以下简称"本次发行"）的保荐人（主承销商）， 对本次发行的发行过程及认购对象合规性进行了核查，认为东山精密的本次发行 过程及认购对象符合《中华人民共和国公司法》《中华人民共和国证券法》《证券 发行与承销管理办法》《上市公司证券发行注册管理办法》《深圳证券交易所上市 公司证券发行与承销业务实施细则》（以下简称"《实施细则》"）等有关法律、法 规、规章制度的要求及东山精密有关本次发行的董事会 ...

目 录 | 一、验资报告 ……………………………………………………………………………………… 第 1―2 页 | | --- | | 二、附件 ··············································································································· 第 3-12 页 | | --- | | (一)注册资本及实收股本变更前后对照表 | | (二)验资事项说明 | | (三)银行询证函及投资款收款凭证 … | | (四)本所营业执照复印件 ·································································第 9 页 | | (五）本所执业证书复印件 ·····································································第 10 页 | | (六)签字注册会计师执业证书复印件 ·······················第 11-12 页 | 325 型 (2006年 ...