Avary Holding(SZ:002938) Huaxin Securities·2024-08-16 10:03Investment Rating - The report assigns a "Buy" rating for the company, marking it as the first recommendation [2]. Core Views - The company reported a revenue of 13.79% year-on-year growth in the first half of 2024, reaching 13.126 billion yuan, while the net profit attributable to shareholders decreased by 3.4% to 784 million yuan [2][5]. - The PCB industry is expected to benefit from the rise of AI smartphones, with the total market value projected to reach 73.026 billion USD in 2024, growing by 5.0% [2][4]. - The company is enhancing its R&D efforts in AI-related fields, with R&D expenditure increasing by 20.43% to 1.079 billion yuan in the first half of 2024 [2][4]. Summary by Sections Financial Performance - In Q2 2024, the company achieved a revenue of 6.440 billion yuan, a year-on-year increase of 32.28%, while the net profit attributable to shareholders was 287 million yuan, down 27.03% [2]. - The revenue structure indicates that communication boards account for 66.51% of total production, with consumer electronics boards showing a recovery with a 36.57% increase in revenue [2][4]. Market Trends - The report highlights 2024 as the year of AI smartphones, with the upcoming release of the iPhone 16 expected to solidify the upward trend in the PCB industry [2][4]. - The company is positioned to meet the increasing demand for high-end PCBs driven by the performance requirements of AI smartphones [3][4]. Production Capacity and R&D - The company is expanding its production capacity with significant investments in new facilities, including a 4.2 billion yuan investment in the Huai'an third park, which focuses on high-end HDI and SLP products [4]. - The company’s production capabilities include advanced PCB products with minimum hole diameters of 0.025mm and minimum line widths of 0.020mm, catering to high-end applications [4]. Earnings Forecast - The forecast for the company's revenue from 2024 to 2026 is 38.088 billion yuan, 45.012 billion yuan, and 51.017 billion yuan, respectively, with corresponding EPS of 1.72, 2.16, and 2.59 yuan [5][7].