WUS(SZ:002463) Huachuang Securities·2024-10-25 08:38Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 56.1 CNY, compared to the current price of 42.33 CNY [1][2]. Core Views - The company's Q3 2024 performance met expectations, with revenue reaching 3.587 billion CNY, a year-over-year increase of 54.67% and a quarter-over-quarter increase of 26.29%. The net profit attributable to shareholders was 708 million CNY, up 53.66% year-over-year and 13.03% quarter-over-quarter [1][2]. - The strong performance is driven by high demand for advanced products such as 800G switches and AI servers, leading to an optimized product structure [2]. - The company plans to invest 4.3 billion CNY in a project to build high-end printed circuit boards for AI chips, indicating a strategic focus on AI technology [1][2]. Financial Summary - Total revenue for 2023 is projected at 8.938 billion CNY, with a year-over-year growth rate of 7.2%. For 2024, revenue is expected to reach 11.564 billion CNY, reflecting a growth rate of 29.4% [3]. - The net profit attributable to shareholders is forecasted to be 1.513 billion CNY in 2023, with a growth rate of 11.1%. By 2024, it is expected to increase to 2.625 billion CNY, representing a significant growth of 73.5% [3]. - The earnings per share (EPS) is projected to rise from 0.79 CNY in 2023 to 1.37 CNY in 2024, with a price-to-earnings (P/E) ratio decreasing from 54 to 31 [3]. Market Position and Outlook - The company is well-positioned to benefit from the growing AI computing market, particularly in North America, where it has established a strong customer base [2]. - The report anticipates that the company's profitability will continue to improve, with expectations for monthly profits to consistently break new highs [2]. - The production capacity is expected to increase with the upcoming launch of the Thailand factory and ongoing upgrades at the Kunshan facility, further solidifying the company's competitive advantage [2].