WUS(SZ:002463) Huaan Securities·2024-09-24 23:05Investment Rating - The report assigns a positive investment rating to the company, indicating strong growth potential in the high-end PCB market driven by AI and automotive sectors [5]. Core Insights - The company is recognized as a key supplier in the high-end PCB industry, benefiting from the dual growth drivers of data communication and automotive applications [5]. - The demand for AI continues to grow, with significant investments from major internet companies enhancing the market outlook for PCB products [5]. - The automotive sector, particularly in electric and intelligent vehicles, is expected to drive PCB demand significantly [5]. - The company has a robust pipeline of core projects and a positive earnings forecast, suggesting strong future profitability [5]. Summary by Sections 1. Company Overview - The company has evolved into a core supplier of high-end PCBs over the past three decades, with a diversified ownership structure and advanced technological capabilities [5]. - The company has demonstrated steady operational performance and revenue growth [5]. - The PCB industry is experiencing a recovery, with improving inventory levels [5]. 2. Market Demand - AI demand is on the rise, with the company maintaining a high level of activity in the enterprise communication PCB market [5]. - Continuous capital expenditures from major internet firms are expected to drive growth in AI server markets [5]. - Upgrades in switch technology are opening new market opportunities for PCBs [5]. - The advancement of AI chips is anticipated to further enhance PCB upgrades [5]. 3. Automotive Sector - The company is actively expanding its presence in the automotive PCB sector [5]. - The demand for PCBs is being propelled by the growth of electric vehicles [5]. - The electrification and intelligence of vehicles are expected to significantly increase PCB requirements [5]. 4. Financial Projections - The company’s revenue is projected to grow from 893.8 billion in 2023 to 1,171.47 billion by 2026, reflecting a compound annual growth rate (CAGR) of 32.3% [4]. - The net profit margin is expected to improve, with a forecasted net profit of 1,513 million in 2024, increasing to 3,899 million by 2026 [4]. - The report highlights a strong return on equity (ROE) forecast, increasing from 15.5% in 2023 to 22.2% in 2025 [4].