开源证券：给予东山精密买入评级

Core Viewpoint - Dongshan Precision's LED business is undergoing optimization, leading to a significant profit decline in 2024, but a strong recovery is expected in Q1 2025 driven by AI and new energy sectors [2][4]. Financial Performance - In 2024, the company achieved revenue of 36.77 billion yuan, a year-on-year increase of 9.27%, while net profit attributable to shareholders was 1.09 billion yuan, a decrease of 44.74% [2]. - The fourth quarter of 2024 saw revenue of 10.30 billion yuan, a year-on-year decrease of 7.59%, and a net profit of 18 million yuan, down 97.11% year-on-year [2]. - The decline in profits is attributed to asset disposal and impairment losses totaling 1.64 billion yuan and 5.95 billion yuan, respectively [2]. Future Outlook - The company forecasts a 50-60% increase in net profit for Q1 2025, benefiting from the growing demand for AI in ICT infrastructure [2]. - Long-term performance is expected to improve with the LED business turning profitable and the PCB sector benefiting from AI-driven demand [2]. Industry Trends - The rapid penetration of edge AI is increasing demand for flexible printed circuits (FPC), with the company ranking second globally in FPC revenue [3]. - The new energy vehicle sector is projected to grow significantly, with revenue from this segment reaching 8.65 billion yuan in 2024, a year-on-year increase of 36.98% [4]. Strategic Initiatives - The company is implementing a "dual-wheel drive" strategy, focusing on core products like PCB and precision components while exploring new markets and clients [4].