DSBJ(SZ:002384) CHINA DRAGON SECURITIES·2024-08-27 03:43Investment Rating - The investment rating for the company is "Accumulate" (首次覆盖) [1] Core Views - The company's flexible circuit board (FPC) and touch panel businesses have shown significant growth, partially offsetting the decline in gross margin from its main electronic circuit business. In the first half of 2024, the electronic circuit business achieved revenue of 10.85 billion yuan, a year-on-year increase of 20.93%, maintaining a revenue share of over 65% [1] - The company reported a total revenue of 16.629 billion yuan in the first half of 2024, representing a year-on-year growth of 21.67%, while the net profit attributable to the parent company was 561 million yuan, a decrease of 32.01% year-on-year [1] - The AI wave is driving growth in the FPC business, and the new energy business is expected to grow steadily. The revenue from the new energy business reached 3.81 billion yuan, a year-on-year increase of approximately 29.33%, further increasing its share of total revenue [1] Financial Performance Summary - The company’s revenue for 2024 is projected to be 38.466 billion yuan, with a growth rate of 14.31%. The net profit attributable to the parent company is expected to be 1.97 billion yuan, reflecting a slight increase of 0.27% [2] - The company’s gross margin is expected to improve slightly to 15.71% in 2024, compared to 15.18% in 2023 [6] - The company’s earnings per share (EPS) for 2024 is projected to be 1.15 yuan, with a price-to-earnings (P/E) ratio of 19.1 times [2][6] Comparable Company Valuation - The company is compared with similar firms such as Huadian Technology, Shenzhen South Circuit, and Jingwang Electronics. The average P/E ratio for these comparable companies is 25.6 times, while the company’s current valuation is lower than the industry average, justifying the "Accumulate" rating [3][6]