OLYMPIC(603920) 国盛证券·2024-10-24 10:03Investment Rating - The report initiates coverage with a "Buy" rating for the company [3]. Core Views - The company has over 10 years of experience in the automotive electronics sector and has established strong partnerships with leading global brands, particularly in the electric vehicle market [1]. - The global PCB market is expected to grow significantly, with projections indicating a market size of $98.39 billion by 2027 and a domestic market size of 346.90 billion yuan in 2024, driven by the demand from the electric vehicle sector and advancements in AI and communication technologies [2]. - The company has deepened its collaboration with Tesla, becoming a key supplier for various AI projects, which is anticipated to drive future revenue growth [2]. - The company is expected to enter a period of rapid revenue growth, with projected revenues of 5.33 billion yuan, 6.33 billion yuan, and 7.60 billion yuan for 2024, 2025, and 2026, respectively, reflecting year-on-year growth rates of 17.9%, 18.9%, and 19.9% [2]. Summary by Sections Company Overview - The company, founded in 1985, specializes in PCB manufacturing and has developed a production capacity for high-layer boards and HDI boards, focusing on the electric vehicle sector [1][13]. - It has established long-term relationships with major clients such as Tesla, Panasonic, and Hyundai Mobis, enhancing its market presence [1][13]. Market Analysis - The PCB market is experiencing steady growth, with a shift towards high-density and high-performance products driven by technological advancements [2]. - China is positioned as the largest PCB producer globally, benefiting from the increasing demand in the electric vehicle and AI sectors [2]. Financial Projections - The company forecasts significant growth in both revenue and net profit from 2024 to 2026, with net profits expected to reach 694 million yuan, 874 million yuan, and 1.13 billion yuan, respectively, indicating growth rates of 40.1%, 25.9%, and 29.2% [2][5]. - The current stock price corresponds to a P/E ratio of 19.6x for 2025, suggesting a favorable valuation for potential investors [2].