Kinwong(SH:603228) Changjiang Securities·2024-07-04 02:01Investment Rating - The report maintains a "Buy" rating for the company [2][40]. Core Views - The company has continuously improved its product technology, particularly in high-end HDI, multi-layer PCB, and multi-layer FPC products, establishing strong technical capabilities [2]. - The company is actively advancing its layout in the automotive and data communication sectors, focusing on the actual needs of smart connected vehicles and autonomous driving scenarios [2]. - The dual drivers of data communication and automotive sectors are expected to open a second growth engine for the company, leading to significant performance growth [2]. - The projected net profits for 2024-2026 are estimated at 1.249 billion, 1.557 billion, and 1.868 billion yuan, corresponding to current price-to-earnings ratios of 20.03, 16.06, and 13.39 respectively [2]. Summary of Financial Performance - The company expects to achieve a net profit attributable to shareholders of 638-702 million yuan in the first half of 2024, representing a year-on-year growth of 57.9% to 73.7% [12]. - For Q2 2024, the expected net profit is projected to be 320-384 million yuan, with a year-on-year growth of 51.6% to 81.8% and a quarter-on-quarter growth of 0.6% to 20.7% [12]. - The company has reported a continuous increase in production capacity utilization, maintaining a high level of operational efficiency [22]. Market Position and Competitive Advantage - The company has made significant progress in high-end product development and key customer acquisition, enhancing its market share among major domestic and international clients [22]. - The company is one of the few manufacturers in China that covers rigid, flexible, and metal-based circuit boards, with advanced production capabilities in high-layer PCBs and HDI [40].