Avary Holding(002938) 西南证券·2024-08-21 05:38Investment Rating - The report maintains a "Buy" rating for the company with a target price of 41.50 CNY over the next six months [1][11]. Core Insights - The company reported a revenue of 13.13 billion CNY for H1 2024, representing a year-on-year growth of 13.8%. However, the net profit attributable to shareholders decreased by 3.4% to 780 million CNY, while the net profit excluding non-recurring items increased by 2.2% to approximately 760 million CNY [2]. - The growth in revenue is attributed to a recovery in downstream demand, with Q2 2024 revenue reaching 6.44 billion CNY, a year-on-year increase of 32.3% [2]. - The company is expected to benefit from the accelerated development of AI applications, which is projected to significantly increase the demand for high-end PCB products [2]. - The company is actively expanding its production capacity for high-end HDI and SLP printed circuit boards, with the first phase of its expansion project already in operation [2]. - The automotive and server sectors are also seeing growth, with the company establishing partnerships with major Tier 1 manufacturers and accelerating its business layout in these areas [2]. Summary by Sections Revenue and Profitability - For H1 2024, the company achieved a revenue of 13.13 billion CNY, a 13.8% increase year-on-year. The Q2 revenue was 6.44 billion CNY, up 32.3% year-on-year [2]. - The net profit attributable to shareholders was 780 million CNY, down 3.4% year-on-year, while the net profit excluding non-recurring items was approximately 760 million CNY, up 2.2% [2]. - The gross margin for H1 2024 was 18.0%, a decrease of 0.3 percentage points year-on-year, primarily due to pricing pressures and increased expenses for production preparations [2]. Business Segments - The communication board segment generated 8.73 billion CNY in revenue, a slight increase of 3.7% year-on-year. The consumer electronics and computing board segment saw revenue of 3.93 billion CNY, a growth of 36.6% [2]. - The automotive and server products generated 430 million CNY in revenue, marking a significant increase of 94.3% year-on-year [2]. Future Outlook - The company forecasts net profits of 3.84 billion CNY, 4.78 billion CNY, and 5.52 billion CNY for 2024, 2025, and 2026, respectively [11]. - The report anticipates that the demand for high-end PCBs will increase due to the rapid adoption of AI technologies in consumer electronics [2]. - The company is also focusing on expanding its production capacity in the automotive and server sectors, which are expected to contribute significantly to revenue growth in the coming years [2].