WUS(SZ:002463) Xin Lang Cai Jing·2025-07-14 06:45Core Viewpoint - The company is expected to achieve a significant increase in net profit for 1H25, driven by the rising demand for high-end PCBs related to AI applications, despite facing challenges such as foreign exchange pressures and tariff conflicts [1][2]. Financial Performance - The company anticipates a net profit of 1.65-1.75 billion yuan for 1H25, representing a year-on-year growth of 45-53%. In 2Q25, the net profit is projected to be 0.89-0.99 billion yuan, reflecting a year-on-year increase of 42-58%, marking a historical high for the company in a single quarter [1]. - The net profit forecasts for 2025, 2026, and 2027 have been raised by 3%, 19%, and 30% respectively, now estimated at 3.83 billion, 5.41 billion, and 6.47 billion yuan [4]. Market Position and Demand - The company has established a strong position with core cloud customers, benefiting from the rapid growth in PCB demand from overseas cloud service providers. The anticipated launch of new ASIC chip projects by major cloud players like Google, Amazon, and Meta is expected to generate an additional 13.4 billion yuan in PCB demand by 2026 [2]. - The company is well-positioned to secure more high-end AI PCB orders from cloud customers in the upcoming periods, contributing to revenue growth [2]. Capacity and Production - The company has been operating at full capacity due to strong demand from AI clients. However, concerns regarding production capacity bottlenecks have been raised. Increased capital expenditure (approximately 2.1 billion yuan from 3Q24 to 1Q25) is expected to alleviate these bottlenecks starting in 2H25, allowing for continued profit growth [3]. Valuation and Target Price - The target price has been raised to 72.80 yuan, maintaining a "buy" rating. This adjustment reflects the better-than-expected demand for ASIC AI server PCBs and the anticipated easing of capacity constraints [4].