WUS(002463) Xinda Securities·2024-10-27 15:30Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company is a leading player in the PCB sector, benefiting from strong partnerships with top firms in the AI industry, which has led to significant revenue growth in the first three quarters of 2024 [2] - The company has reported a revenue of 9.011 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 48.15%, and a net profit of 1.848 billion yuan, up 93.94% year-on-year, exceeding the profit guidance [2] - The company is making substantial investments in new AI-related PCB projects, which will solidify its long-term growth foundation [2] Financial Performance - For the first three quarters of 2024, the company's gross margin was 35.86%, and net margin was 20.31%, both showing year-on-year improvements of 4.69 percentage points and 3.65 percentage points respectively [2] - The company’s inventory reached 2.691 billion yuan, up 53.83% year-on-year, and construction in progress was 1.260 billion yuan, up 121.11% year-on-year, due to expansion projects [2] - Revenue projections for 2024E, 2025E, and 2026E are 12.010 billion yuan, 15.306 billion yuan, and 16.995 billion yuan respectively, with year-on-year growth rates of 34.4%, 27.4%, and 11% [3][4] - The expected net profit for 2024E, 2025E, and 2026E is 2.469 billion yuan, 3.464 billion yuan, and 3.993 billion yuan respectively, with year-on-year growth rates of 63.2%, 40.3%, and 15.3% [3][4] Investment Strategy - The company is adjusting its investment strategy to focus on high-end printed circuit boards for AI chips, with a total planned investment of 4.3 billion yuan, divided into two phases [2] - The first phase will involve an investment of approximately 2.68 billion yuan, while the second phase will require about 1.62 billion yuan [2]