OLYMPIC(603920) 国盛证券·2024-10-24 09:11Company Overview - The company, Shihua Circuit (603920 SH), is a global PCB manufacturer with nearly 40 years of experience, specializing in the automotive electronics and AI sectors [1][13] - It has a comprehensive product portfolio, including double-sided, multi-layer, HDI, flexible, rigid-flex, and metal-based boards, with automotive PCBs being the largest segment [13] - Key clients include Tesla, Panasonic, Mitsubishi, Bosch Siemens, Dyson, Toyota, and Volkswagen [13] Industry Overview - The global PCB market is expected to reach $98 39 billion by 2027, with the Chinese market projected to grow to 346 9 billion yuan by 2024, driven by the rapid development of downstream applications such as new energy vehicles, AI, and communication technologies [2] - China is the largest PCB producer globally, accounting for 54 37% of the global market in 2023, with the industry characterized by both cyclical and growth trends [37] - The PCB industry is shifting towards high-density, high-integration, and high-flexibility products, with HDI and IC substrate boards expected to become more prevalent [2][36] Financial Performance - The company's revenue is forecasted to grow from 5 33 billion yuan in 2024 to 7 6 billion yuan in 2026, with net profit expected to increase from 694 million yuan to 1 13 billion yuan during the same period [2] - Overseas revenue accounts for over 80% of total revenue, with rigid-flex boards showing increasing revenue contribution [25] - The company's gross margin and net margin have remained stable, except for a temporary dip in 2021 due to exchange rate fluctuations and rising raw material costs [29] Key Growth Drivers - The company has a deep partnership with Tesla, supplying PCBs for projects such as Dojo, FSD, and humanoid robots, which are expected to drive future growth [2][13] - The new energy vehicle market is a key growth area, with PCB usage in EVs being 5-8 times higher than in traditional vehicles, driven by the electrification and智能化 of automobiles [57][59] - The AI and data center markets are also significant growth drivers, with increasing demand for high-performance PCBs in servers, storage, and communication equipment [62][63] Technological Capabilities - The company has advanced production capabilities, including 28-layer AI server PCBs, 24-layer rigid boards, 5-step HDI, and 6oz thick copper multi-layer boards, meeting the requirements of mainstream AI server PCBs [17] - It has a strong focus on R&D, with a dedicated HDI production line established since 2013, and has successfully produced PCBs for international clients' supercomputer projects [17] Market Position - The company is a leading player in the automotive PCB market, with over 10 years of experience in the new energy vehicle sector, and has established long-term relationships with global top-tier clients [1][13] - It is well-positioned to benefit from the growth of high-end PCB markets driven by AI, 5G, and new energy vehicles, with its technological expertise and strong client relationships [2][13]