FRD(SZ:300602) Xin Lang Cai Jing·2025-04-23 08:46Core Insights - The company reported a stable overall operation for 2024, with positive market trends and growth in downstream application demand, leading to an expansion in business scale [1] - The company maintains a "buy" rating based on strong financial performance and growth prospects in various sectors, particularly in AI servers and consumer electronics [1][3] Financial Performance - In 2024, the company achieved a revenue of 5.031 billion yuan, a year-on-year increase of 15.76%, and a net profit attributable to shareholders of 189 million yuan, up 83.01% [1] - The gross profit margin for 2024 was 19.18%, a decrease of 0.29 percentage points, while the net profit margin increased by 1.38 percentage points to 3.75% [1] - For Q1 2025, the company reported a revenue of 1.181 billion yuan, a year-on-year increase of 14.74%, and a net profit of 58 million yuan, up 85.57% [1] Market Trends - The consumer electronics market is recovering, driven by increased demand, market share recovery of key clients in the mobile sector, and accelerated domestic substitution [2] - The rapid development of AI technology and growth in emerging markets are contributing to the recovery of the consumer electronics industry, with heightened requirements for electromagnetic compatibility and thermal management [2] Business Development - The AI server business is progressing well, with batch orders and mass production achieved, alongside ongoing research and development of new technologies and products in cooling solutions [3] - The company is focusing on enhancing its market share and profitability by increasing R&D investments and developing new products tailored to diverse customer needs in thermal management and electromagnetic shielding [2][3] Future Outlook - The company anticipates multi-dimensional growth drivers in its thermal management and shielding business due to the ongoing recovery in consumer electronics demand and increased cooling needs in the AI era [3] - Revenue projections for 2025, 2026, and 2027 are estimated at 6.112 billion yuan, 7.323 billion yuan, and 8.816 billion yuan, respectively, with net profits of 342 million yuan, 441 million yuan, and 571 million yuan [3]