WUS(SZ:002463) Huachuang Securities·2024-10-09 00:37Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 55.8 CNY, compared to the current price of 44.18 CNY [2]. Core Views - The company's performance for the first three quarters of 2024 is expected to meet expectations, driven by strong demand for AI products, with projected net profit ranging from 1.821 to 1.871 billion CNY, representing a year-on-year increase of 91-96% [2]. - The third quarter of 2024 is anticipated to show significant improvement in performance, with a net profit forecast of 680 to 730 million CNY, reflecting a year-on-year growth of 48-59% and a quarter-on-quarter increase of 9-17% [2]. - The demand for AI products, particularly in high-speed computing servers and AI applications, is expected to drive substantial growth in the company's earnings [2]. - The penetration of 800G switches is accelerating, with expectations that the data center switch market will expand by 50% due to increased spending on AI backend networks [2]. - The company is focusing on high-end automotive board products, with potential contributions from its subsidiary, Shengweicai, expected to enhance automotive business growth [2]. Financial Summary - The total revenue for 2023 is projected at 8.938 billion CNY, with expected growth rates of 29.4% in 2024 and 27.6% in 2025 [3]. - The net profit for 2023 is estimated at 1.513 billion CNY, with a significant increase of 74.4% expected in 2024 [3]. - Earnings per share (EPS) is projected to rise from 0.79 CNY in 2023 to 1.38 CNY in 2024, reflecting a strong growth trajectory [3]. - The company’s price-to-earnings (P/E) ratio is expected to decrease from 56 in 2023 to 32 in 2024, indicating improved valuation metrics [3].