DSBJ(SZ:002384) Huachuang Securities·2024-08-20 15:37Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expectation to outperform the benchmark index by over 20% in the next six months [2][16]. Core Views - The company's H1 2024 revenue reached 16.629 billion, a year-on-year increase of 21.67%, while the net profit attributable to shareholders was 561 million, reflecting a year-on-year decrease of 32% [2]. - The report highlights that the performance is largely in line with expectations, with foreign exchange losses and traditional business struggles impacting overall profitability [2]. - The company is actively pursuing a strategy focused on major clients and is embracing the integration of consumer electronics and new energy vehicles [2]. - The outlook for the second half of 2024 and 2025 is optimistic, driven by a new product launch season and anticipated growth in the AI mobile phone market [2]. Financial Summary - For H1 2024, the PCB business generated revenue of 10.85 billion, up 20.93% year-on-year, with a gross margin of 17.41% [2]. - The touch display module revenue was 3.12 billion, a 40.73% increase year-on-year, with a gross margin of 3.96% [2]. - The LED segment reported revenue of 438 million, a 4.3% increase year-on-year, but with a negative gross margin of -26.89% [2]. - The new energy business achieved revenue of 3.81 billion, reflecting a year-on-year growth of 29.3% [2]. - The report adjusts the earnings forecast for 2024-2026, with expected profits of 2.016 billion, 2.774 billion, and 3.207 billion respectively [3][9]. Valuation and Target Price - The target price for the company is set at 32.4 yuan, based on a 20x PE ratio for 2025 [2][5]. - The current price is noted at 22.24 yuan, indicating significant upside potential [5]. Market Position - The company is recognized as a leading PCB manufacturer and precision manufacturing leader in China, with a strong positioning in the AI hardware and new energy sectors [2].