DSBJ(SZ:002384) Huafu Securities·2024-08-13 10:08Investment Rating - The report initiates coverage with a "Buy" rating for the company [5][43]. Core Views - The company is focusing on a "dual-engine" development strategy centered on consumer electronics and new energy businesses, leveraging both internal growth and external acquisitions to enhance its market position [2][8]. - The PCB business remains the core revenue driver, accounting for 69% of total revenue in 2023, with a CAGR of 12.2% from 2019 to 2023 [2][16]. - The FPC market is expected to grow significantly, with the Chinese market projected to exceed 180 billion yuan by 2027, driven by innovations in consumer electronics [2][27]. - The automotive business is expanding through major client growth and increased per-vehicle value, with a focus on providing comprehensive solutions for new energy vehicles [2][35]. Summary by Sections 1. Company Overview - The company has evolved from a precision manufacturing background to become a leading supplier in the consumer electronics sector through strategic acquisitions and internal growth [2][8]. - Revenue increased from 23.5 billion yuan in 2019 to 33.7 billion yuan in 2023, with a CAGR of 9.33% [2][14]. 2. Consumer Electronics - The PCB market is projected to exceed 90 billion USD by 2028, with FPC being a significant segment, expected to grow at a CAGR of 8.5% from 2021 to 2027 in China [20][22]. - The company has become the second-largest FPC manufacturer globally, benefiting from the increasing demand for flexible circuit boards in smartphones and other devices [27][29]. 3. Automotive Business - The company offers a range of products for new energy vehicles, including PCBs, displays, and structural components, with a focus on enhancing the value per vehicle [35][37]. - The precision manufacturing segment is expected to see significant growth due to the rising demand for lightweight aluminum components in the automotive industry [37][39]. 4. Financial Forecast and Investment Recommendations - Projected revenues for 2024-2026 are 372 billion yuan, 436 billion yuan, and 498 billion yuan, with corresponding net profits of 23.27 billion yuan, 30.73 billion yuan, and 40.33 billion yuan [3][41]. - The company is expected to benefit from the AI wave, with a favorable market position leading to a "Buy" rating [3][43].