Ningbo Sunrise(SZ:002937) Soochow Securities·2024-07-04 23:00Investment Rating - The report maintains a "Buy" rating for the company [1][17]. Core Insights - The company is establishing a second growth curve through its server and AI terminal business, which is expected to become a new performance growth driver. The company is expanding its production capacity and has already entered the server supply chain, targeting high-value products for key clients [1]. - The automotive electronics segment is entering a high growth phase, with significant orders in hand and new production capacity expected to support long-term growth [16]. - The demand for smart terminals is gradually recovering, with the company focusing on AI terminal development to seize new industry opportunities [3]. Summary by Sections Company Overview - The company plans to invest up to $11 million in establishing a subsidiary and production base in Thailand, focusing on automotive electronics and server structural components [2]. Financial Performance - The company forecasts revenue growth from 2,006 million yuan in 2023 to 4,521 million yuan by 2026, with a compound annual growth rate (CAGR) of approximately 29.48% [15]. - The net profit attributable to the parent company is projected to increase from 267.03 million yuan in 2023 to 678.25 million yuan in 2026, reflecting a strong growth trajectory [15]. Profitability Metrics - The report estimates the company's earnings per share (EPS) to rise from 0.90 yuan in 2023 to 2.28 yuan in 2026, indicating improving profitability [15][17]. - The price-to-earnings (P/E) ratio is expected to decrease from 24.41 in 2023 to 9.61 in 2026, suggesting that the stock may become more attractive over time [15][17].