LY iTECH(SZ:002600) Tianfeng Securities·2024-07-31 08:00Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The visit of Apple's COO Jeff to the company highlights the strengthening of its platform advantages and its critical role in Apple's supply chain [1] - A three-year innovation cycle with major clients is expected to drive growth in the consumer electronics business, particularly with the launch of Apple Intelligence, which is anticipated to enhance AI experiences and stimulate iPhone upgrade cycles [1] - The company has established itself as a core supplier of thermal management products for AI hardware, with a comprehensive layout in thermal components, positioning it to benefit from the upgrade of AI terminal hardware platforms [2] Financial Summary - Revenue for 2023 is projected at 34,123.71 million, with a slight decline of 1.05% from 2022, followed by a growth forecast of 16.00% in 2024 [3] - The net profit attributable to the parent company is expected to be 2,050.91 million in 2023, reflecting a growth of 28.50% from 2022 [3] - The company’s gross margin is projected to be 19.94% in 2023, with a net margin of 6.01% [6] Business Outlook - The company is expected to maintain a steady growth trajectory in its AI terminal and communication-related businesses, with revenue reaching 306.87 billion in 2023 and a gross margin of 21.62% [2] - The company is well-positioned to participate in significant product innovations for major clients, enhancing its market share and value during the upcoming hardware cycle [1][2] Valuation Metrics - The projected EPS for 2023 is 0.29, with a P/E ratio of 23.24 [3] - The projected P/B ratio for 2023 is 2.61, indicating a solid valuation relative to book value [3] - The company’s EV/EBITDA is projected at 1.81 for 2023, reflecting its operational efficiency [3]