OLYMPIC(603920) 国信证券·2024-07-11 00:30Investment Rating - The report assigns an "Outperform" rating to the company [26][111]. Core Insights - The company has achieved steady revenue growth over the past decade, with a CAGR of 14.45% from 2013 to 2023, and is well-positioned in the automotive PCB market, particularly in the electric vehicle sector [6][74]. - The company is expected to see revenue growth of 17.5%, 19.8%, and 12.0% in the years 2024, 2025, and 2026, respectively, with corresponding net profits of 5.9 billion, 7.3 billion, and 8.2 billion yuan [21][44]. - The company has established itself as a key supplier for major automotive brands, including Tesla, and is benefiting from the increasing demand for high-end PCBs driven by the growth of AI and electric vehicles [12][20][79]. Financial Forecasts and Metrics - Revenue (in million yuan) is projected to be 4,519 in 2023, 5,310 in 2024, 6,361 in 2025, and 7,122 in 2026, with growth rates of 2.0%, 17.5%, 19.8%, and 12.0% respectively [2][44]. - Net profit (in million yuan) is forecasted to be 496 in 2023, 593 in 2024, 731 in 2025, and 824 in 2026, with growth rates of 14.2%, 19.7%, 23.3%, and 12.7% respectively [2][44]. - The company’s earnings per share (EPS) are expected to be 0.92 in 2023, 1.10 in 2024, 1.36 in 2025, and 1.53 in 2026 [2][44]. Valuation and Market Position - The report suggests a target price range of 28.6 to 30.8 yuan for the company, based on a PE ratio of 26-28 for 2024, indicating a potential upside of 29.6% to 39.6% from the current price [26][57]. - The company is positioned favorably compared to its peers, with a current PE ratio of 23.5 and a market capitalization of 145.42 billion yuan [25][111]. Industry Context - The global automotive PCB market is projected to grow significantly, with the automotive electronics PCB market expected to reach approximately 11.779 billion USD by 2028, growing at a CAGR of 5.2% from 2023 to 2028 [12][90]. - The demand for high-end PCBs is being driven by advancements in AI and the increasing complexity of electronic components in vehicles, particularly in electric and autonomous vehicles [20][118].