Avary Holding(SZ:002938)2024-07-21 10:01Investment Rating - The report maintains a "Buy" rating for the company [2][7]. Core Insights - The company's revenue for June 2024 reached RMB 211.71 million, a year-on-year increase of 24.11%, with Q2 revenue at RMB 6.44 billion, up 32% year-on-year, indicating better-than-expected performance during the off-season [6]. - In 2023, the company's total revenue was RMB 32.066 billion, a decline of 11.45% year-on-year, while net profit attributable to shareholders was RMB 3.287 billion [6][9]. - The company has been recognized as the largest PCB manufacturer globally for seven consecutive years from 2017 to 2023 [6]. Summary by Sections Financial Performance - The company reported a total revenue of RMB 32.066 billion in 2023, with a gross profit margin of 21.3% [9]. - The net profit for 2023 was RMB 3.287 billion, with a year-on-year decrease of 34.4% [8][9]. - The earnings per share (EPS) for 2023 was RMB 1.42, with projections for 2024, 2025, and 2026 at RMB 1.73, RMB 1.98, and RMB 2.05 respectively [8][9]. Business Development - The company is focusing on emerging sectors, including automotive PCBs and AI server products, with significant advancements in production capabilities [6][7]. - The automotive PCB segment has seen a 71.45% year-on-year increase in revenue, with new products entering mass production [6]. - The company has made substantial investments in expanding its production capacity both domestically and overseas, including projects in Huai'an and Taiwan [7]. Profit Forecast - The profit forecasts for 2024, 2025, and 2026 have been revised upwards to RMB 4 billion, RMB 4.59 billion, and RMB 4.75 billion respectively [7][8]. - The company is expected to maintain a price-to-earnings (PE) ratio of 21X in 2024 [7].