JCET(SH:600584) Shanxi Securities·2024-10-11 05:07Investment Rating - The report assigns a "Buy-A" rating to the company, Jiangsu Changjiang Electronics Technology Co., Ltd. (长电科技) [2][3]. Core Insights - The company is accelerating its transition from consumer electronics to high-value-added fields, with a focus on enhancing its storage packaging capabilities through the acquisition of Shengdie Semiconductor [1][2]. - The global third-largest outsourced semiconductor assembly and test (OSAT) company, Changjiang Electronics is positioned to benefit from the rapid growth in NAND demand driven by the AI era [1][2]. - The company has a strong patent portfolio and leads the industry in advanced packaging technology, which is crucial for maintaining competitiveness in the semiconductor market [1][2][3]. Summary by Sections Company Overview - Jiangsu Changjiang Electronics Technology Co., Ltd. is the third-largest OSAT provider globally, offering a comprehensive range of services from system integration to product testing [11][12]. - The company has a significant international presence, with over 70% of its revenue coming from overseas markets [11][12]. Recent Performance - The company experienced a revenue decline of 12.1% in 2023 but is expected to recover with projected revenue growth of 21.9% in 2024 [3][17]. - The net profit for 2024 is forecasted to be 21.68 billion yuan, with a steady increase expected through 2026 [2][3]. Market Trends - The global semiconductor packaging market is projected to grow significantly, with a market size of approximately $82.2 billion in 2023, expected to reach $89.9 billion in 2024 [28][29]. - The demand for advanced packaging solutions is being driven by the recovery in consumer electronics and the growth of AI applications [25][28]. Strategic Initiatives - The acquisition of Shengdie Semiconductor will enhance the company's capabilities in storage packaging and strengthen its market position [1][2]. - The company is focusing on high-end packaging technologies, particularly in the 5G and automotive sectors, to capture higher value in the semiconductor supply chain [2][3][43]. Financial Projections - The company's earnings per share (EPS) is expected to improve from 0.82 yuan in 2023 to 1.21 yuan in 2024, reflecting a recovery in profitability [3][17]. - The price-to-earnings (P/E) ratio for 2024 is projected at 32.1, decreasing to 16.0 by 2026, indicating a favorable valuation compared to peers [2][3].