LUXSHARE-ICT(SZ:002475) Guoyuan Securities·2024-08-04 06:00Investment Rating - The report maintains a "Buy" investment rating for Luxshare Precision [3][9]. Core Views - The report highlights that Apple's FY24Q3 performance exceeded market expectations, with revenue of $85.78 billion, a year-on-year increase of 4.9%, and an EPS of $1.4, reflecting a 11.1% increase [2][10]. - The report emphasizes the positive outlook for Luxshare Precision as a core supplier in Apple's supply chain, driven by the anticipated demand from AI product integration and the upcoming iPhone 16 series [3][20]. - The report projects Luxshare's net profit for 2024 and 2025 to be 13.716 billion yuan and 17.547 billion yuan, respectively, with a target price of 56.35 yuan based on a 23x PE ratio for 2025 [3][20]. Summary by Sections Financial Data and Valuation - For FY24E, total revenue is projected at 231,905.46 million yuan, with a growth rate of 20.35%. The net profit is expected to be 10,952.66 million yuan, reflecting a growth rate of 25.23% [4][26]. - EPS is forecasted to be 1.54 yuan for FY24E, with a P/E ratio of 22.37 [4][26]. Product Performance - iPhone revenue for FY24Q3 was $39.3 billion, a decrease of 0.9% year-on-year, but showed positive growth when excluding currency impacts. The iPad saw a 24% year-on-year increase in revenue, driven by new AI-driven products [11][10]. - The services segment achieved revenue of $24.2 billion, a 14% increase year-on-year, indicating strong growth potential from AI integration [11][10]. Market Outlook - The report anticipates that Apple's revenue growth will maintain a similar trajectory in FY24Q4, with service revenue expected to continue double-digit growth [17][18]. - The report projects that by 2025, iPhone sales could reach 255 million units, representing an 11.4% year-on-year increase, supported by the ongoing AI integration and product iterations [18][20]. Investment Recommendation - The report recommends focusing on Luxshare Precision as a key player in the Apple supply chain, with expectations of robust growth in mobile assembly and module businesses due to increased demand from AI-driven products [20][22].