Kinwong(SH:603228) Xin Lang Cai Jing·2025-05-06 00:34Core Viewpoint - The company reported strong revenue and profit growth for 2024, with a focus on R&D investments and advancements in various business segments, particularly in automotive electronics and AI computing [1][2][3][4][5] Financial Performance - In 2024, the company achieved revenue of 12.659 billion, a year-on-year increase of 17.68%, and a net profit attributable to shareholders of 1.169 billion, up 24.86% year-on-year [1] - For Q1 2025, revenue was 3.343 billion, reflecting a year-on-year increase of 21.90%, while net profit was 0.325 billion, up 2.18% year-on-year [1] - The gross profit margin for 2024 was 22.73%, a decrease of 0.44 percentage points year-on-year, while the net profit margin was 9.16%, an increase of 0.70 percentage points year-on-year [1] R&D Investments - The company increased R&D expenditure to 0.758 billion in 2024, a year-on-year increase of 26.12%, with an R&D expense ratio of 5.98%, up 0.40 percentage points year-on-year [2] - Significant advancements were made in data center products, automotive electronics, and consumer electronics, with a focus on high-density interconnect (HDI) and high-layer count (HLC) boards [2] Business Segments - In the data center sector, AI server products began mass shipments, and high-speed PCB products achieved significant technological breakthroughs [2] - The automotive electronics segment saw revenue of 5.8 billion, a year-on-year increase of 33%, accounting for 48% of total revenue [2] - The consumer electronics segment experienced substantial growth due to a strong customer base [2] Profitability and Market Conditions - Q1 2025 profitability showed some decline due to rising raw material costs, increased competition in the automotive electronics sector, and higher expenses from stock incentive plans and R&D projects [3] - The company maintains a high utilization rate and has good visibility on downstream orders, although price pressures remain in the automotive electronics segment [3] Future Outlook - The company is expected to make positive progress in AI computing, particularly in high-layer boards and HDI products, with a focus on meeting the growing demand in the industry [4] - The company’s facilities are positioned to benefit from the increasing demand for high-end products, with a significant capacity for high-layer and HDI production [4] - Long-term growth is anticipated due to the company's strong management and the release of high-end capacities in automotive and data communication sectors [5]