Investment Rating - The report assigns a "Buy-A" rating to the company, indicating a strong potential for price appreciation in the coming months [3]. Core Insights - The company has achieved record performance, significantly benefiting from the surge in AI demand. In the first half of 2024, it reported a revenue of 8.32 billion yuan, a year-on-year increase of 37.91%, and a net profit of 0.987 billion yuan, up 108.32% year-on-year [1][3]. - The company is positioned to capitalize on structural opportunities in the industry, with all business orders showing year-on-year growth. The trends of electrification and intelligence in the automotive sector, along with demand recovery in certain areas, are expected to continue [1][2]. Financial Performance Summary - For the first half of 2024, the company achieved a revenue of 8.32 billion yuan, with a net profit of 0.987 billion yuan. The second quarter saw revenues of 4.36 billion yuan, a year-on-year growth of 34.19% and a quarter-on-quarter increase of 10.07% [1]. - The PCB business generated 4.855 billion yuan, accounting for 58.35% of total revenue, with a year-on-year growth of 25.09%. This growth is attributed to increased demand in the communication sector and data centers [1]. - The packaging substrate business reported revenues of 1.596 billion yuan, representing 19.18% of total revenue, with a significant year-on-year growth of 94.31% [1]. - The electronic assembly business generated 1.211 billion yuan, accounting for 14.55% of total revenue, with a year-on-year increase of 42.39% [1]. Earnings Forecast - The company is expected to achieve EPS of 4.13, 5.03, and 6.00 for the years 2024, 2025, and 2026, respectively. The corresponding P/E ratios are projected to be 24.4, 20.0, and 16.8 [3][5]. Strategic Positioning - The company has established a unique "3-In-One" business layout, focusing on interconnectivity while enhancing its leading position in the PCB sector and developing its packaging substrate and electronic assembly businesses [1][2]. - The ongoing development of high-end products in the packaging substrate sector and the introduction of new customers are expected to bolster profitability as production capacity ramps up in new factories [2]. Market Outlook - The report highlights that the company is well-positioned to benefit from the strong demand in AI, communication, and data center sectors, which are expected to drive sustained high growth in its future performance [3].

证券代码：002916 证券简称：深南电路 深南电路股份有限公司投资者关系活动记录表 编号：2024-51 | --- | --- | --- | --- | |--------------------------------|---------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------- ...

Investment Rating - The report maintains a "Recommended" rating for the company [1]. Core Insights - The company reported record high revenue and net profit for the second quarter of 2024, driven by trends in AI, automotive electrification, and demand recovery in certain sectors [1]. - In H1 2024, the company achieved revenue of 8.321 billion yuan, a year-on-year increase of 37.91%, and a net profit attributable to shareholders of 0.987 billion yuan, up 108.32% year-on-year [1]. - The PCB business capitalized on structural opportunities, leading to improved performance, with revenue of 4.855 billion yuan in H1 2024, a 25.09% increase year-on-year [1]. - The packaging substrate business saw a significant revenue increase of 94.31% year-on-year, reaching 1.596 billion yuan in H1 2024 [1]. Financial Performance Summary - The company forecasts revenues of 16.419 billion yuan, 19.399 billion yuan, and 22.733 billion yuan for 2024, 2025, and 2026 respectively, representing year-on-year growth rates of 21%, 18%, and 17% [2]. - The net profit attributable to shareholders is projected to be 2.180 billion yuan, 2.467 billion yuan, and 2.869 billion yuan for the same years, with growth rates of 56%, 13%, and 16% respectively [2]. - The company's EPS is expected to be 4.25 yuan, 4.81 yuan, and 5.59 yuan for 2024, 2025, and 2026, with corresponding PE ratios of 25, 22, and 19 [2]. Business Segment Performance - The company's PCB business benefited from increased demand in the communication sector, particularly for high-speed switches and optical module products [1]. - In the data center sector, demand for AI-related products has significantly increased, leading to a notable rise in orders [1]. - The automotive electronics sector has seen steady growth in demand for high-end products related to intelligent driving, supported by new customer projects [1].

深南电路：24H1 业绩高增，PCB 龙头深度受益 AI 大周期 深南电路（002916.SZ）/电子 证券研究报告/公司点评 2024 年 8 月 28 日 | --- | --- | --- | --- | --- | --- | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Financial Performance - In the first half of 2024, the company achieved total revenue of 83.21 billion RMB, a year-on-year increase of 37.91% [2] - The net profit attributable to shareholders reached 9.87 billion RMB, benefiting from structural opportunities in the industry and increased order volume [2] - The company's operating capacity maintained a good level, with all three main business segments showing year-on-year revenue growth [2] Business Segments - The PCB business is focused on high-end products, with significant applications in data centers and automotive electronics [2] - In the data center sector, orders increased significantly due to rising demand for AI-related products and server upgrades [3] - The automotive electronics segment saw a steady increase in demand for high-end products related to smart driving, enhancing its market share [3] Market Trends - The communication PCB market experienced varied demand, with wireless communication products showing no significant improvement, while wired products for high-speed switches saw growth [3] - The company is actively developing next-generation platform products in response to market needs [3] Production Capacity and Expansion - The second phase of the Wuxi substrate factory achieved breakeven in monthly operations, while the Guangzhou packaging substrate project is in the early stages of ramping up production [4] - The company plans to invest 1.274 billion RMB in a new factory in Thailand to expand its overseas market presence [4] Raw Material Prices - Key raw materials such as copper foil and prepreg saw price fluctuations, but overall costs did not significantly impact the company's operations in the first half of 2024 [4]

Investment Rating - The report maintains a "Hold" rating for the company with a target price of RMB 106.4, unchanged from previous assessments [2][3][6]. Core Insights - The company reported strong performance in the first half of 2024, with revenue increasing by 38% year-on-year to RMB 8.3 billion, and net profit rising by 108% to RMB 0.987 billion, driven by improved gross margins and cost optimization [2][3]. - The growth was attributed to robust demand in artificial intelligence, upgrades in Eagle Stream, stable automotive orders, inventory replenishment in consumer electronics, and expanded profit margins [2][3]. - However, a slowdown in consumer electronics demand is anticipated in the second half of 2024, with revenue and net profit for the first half expected to account for 52% and 56% of the full-year forecasts, respectively [2][3]. Revenue Summary - The company achieved a revenue of RMB 16.051 billion for FY24E, with a year-on-year growth of 19% [13]. - The gross profit is projected to be RMB 4.091 billion, with a gross margin of 25.5% [13]. - Net profit for FY24E is estimated at RMB 1.762 billion, reflecting a year-on-year increase of 26% [13]. Segment Performance - The PCB segment, which accounts for 58% of sales, grew by 25% year-on-year, while the substrate segment saw a remarkable 94% increase [2]. - The PCBA business also performed well, with a 42% year-on-year growth, benefiting from increased PCB sales [2]. Financial Projections - The report projects a revenue of RMB 18.216 billion for FY25E and RMB 20.813 billion for FY26E, indicating continued growth [13]. - The net profit is expected to rise to RMB 2.174 billion in FY25E and RMB 2.791 billion in FY26E [13]. Valuation Metrics - The current stock price corresponds to a forward P/E ratio of approximately 30 times for FY24, which is considered reasonable compared to the historical average of 32.5 times [2][3]. - The report highlights that the estimated gross margin for the second half of 2024 will return to around 25%, influenced by weakening demand and rising raw material costs [3].

CMB International Global Markets | Equity Research | Company Update MN Shennan Circuit (002916 CH) Earnings Summary SCC released 1H24 results. Revenue went up by 38% YoY to RMB8.3bn, with double-digit growth across all segments (PCB/Substrate/PCBA: 25%/94%/42% YoY). NP increased by 108% YoY to RMB987mn, on higher GPM (26.2% in 1H24 vs. 22.9%/23.8% in 1H/2H23) and cost optimization. SCC delivered strong 1H24 results, driven by 1) strong AI demand, 2) Eagle Stream upgrades, 3) robust auto orders, 4) inventory ...

深南电路股份有限公司投资者关系活动记录表 | --- | --- | --- | --- | |------------|----------------------------|----------------------------------------|--------------------------------------------------------------------------------| | | √特定对象调研 □分析师会议 | | □现场参观 | | 投资者关系 | | | | | 活动类别 | □媒体采访 □业绩说明会 | | □新闻发布会 | | | □路演活动 □其他 | （ | ） | | | | | 中泰证券、长江养老、人保资产、华泰资产、长安基金、中银基金、国泰基金、圆信永丰 | | | | | 基金、大家资产、方正富邦基金、中邮基金、勤辰基金、太保基金、财通资管、华安基 | | | | | 金、融通基金、南方基金、富国基金、泰信基金、万佳基金、汇添富基金、华泰柏瑞基 | | | | | 金、交银施罗德基金、民生加银基金、长信基金、太平养老、信银理财、西部证券、 ...

Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expectation of strong performance relative to the market over the next six months [4][7]. Core Views - The company has demonstrated significant growth in performance, with a 37.91% year-over-year increase in revenue for the first half of 2024, reaching 8.321 billion yuan, and a net profit of 0.987 billion yuan, reflecting a 108.32% year-over-year increase [5][7]. - The company is benefiting from the recovery in server demand and the ongoing trends in AI acceleration and automotive electrification, which are driving market opportunities [5][7]. - The company is actively enhancing its product structure and market development efforts, particularly in the PCB and IC substrate sectors, which are expected to see continued growth [5][7]. Financial Summary - Revenue for 2024 is projected to be 18.261 billion yuan in 2024, with a year-over-year growth of 35.0% [4][9]. - Net profit is expected to reach 2.098 billion yuan in 2024, with a year-over-year growth of 50.1% [4][9]. - The gross margin is projected to be 26.0% in 2024, while the net margin is expected to be 11.5% [4][9]. - The company's return on equity (ROE) is forecasted to improve to 14.4% in 2024 [4][9]. Business Segmentation - The PCB business generated revenue of 4.855 billion yuan in the first half of 2024, a 25.09% increase year-over-year, accounting for 58.35% of total revenue [5][7]. - The IC substrate business saw revenue of 1.596 billion yuan, a 94.31% increase year-over-year, representing 19.18% of total revenue [5][7]. - The electronic assembly business achieved revenue of 1.211 billion yuan, a 42.39% increase year-over-year, contributing 14.55% to total revenue [5][7]. Market Outlook - The global PCB market is expected to grow at a compound annual growth rate (CAGR) of 5.4% from 2023 to 2028, with high-layer boards and packaging substrates projected to grow at even higher rates [7]. - The company is positioned to benefit from domestic substitution trends in the semiconductor substrate market, which is expected to drive long-term growth [7].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expectation that the company's stock price will outperform the benchmark index by more than 20% over the next 6-12 months [3]. Core Views - The company experienced significant growth in H1 2024, with revenue reaching 8.32 billion RMB, a year-on-year increase of 37.91%, and a net profit of 0.987 billion RMB, up 108.32% year-on-year. The adjusted net profit was 0.904 billion RMB, reflecting a 112.38% increase [3]. - The PCB business capitalized on structural opportunities, achieving revenue of 4.855 billion RMB, a 25.09% increase, and a gross margin of 31.37%, up 5.52 percentage points [3]. - The packaging substrate business saw revenue growth of 94.31%, reaching 1.596 billion RMB, with a gross margin of 25.46%, an increase of 6.66 percentage points [3]. - The company is expected to continue benefiting from the recovery in the PCB and BT substrate industries, with projected revenues of 17.239 billion RMB, 20.462 billion RMB, and 23.330 billion RMB for 2024, 2025, and 2026, respectively [4]. Summary by Sections Financial Performance - In H1 2024, the company achieved a gross margin of 26.20%, a year-on-year increase of 3.27 percentage points, and a net profit margin of 11.87%, up 4.01 percentage points [3]. - For Q2 2024, revenue was 4.360 billion RMB, a 34.19% year-on-year increase, with a net profit of 0.608 billion RMB, reflecting a 127.18% increase year-on-year [3]. Revenue Projections - The company is projected to achieve revenues of 17.239 billion RMB in 2024, 20.462 billion RMB in 2025, and 23.330 billion RMB in 2026, with corresponding net profits of 2.114 billion RMB, 2.463 billion RMB, and 2.814 billion RMB [4]. Valuation Metrics - The report indicates that the company has a price-to-earnings (P/E) ratio of 25.4 for 2024, 21.8 for 2025, and 19.1 for 2026, suggesting a reasonable valuation compared to its growth prospects [4].