SHENGYI ELECTRONICS CO.(688183) 华创证券·2024-10-29 13:05Investment Rating - The report maintains a "Recommend" rating for Shengyi Electronics (688183) [1] Core Views - Shengyi Electronics' Q3 2024 performance exceeded expectations, driven by strong growth in AI servers and 800G switches [1] - The company's revenue for the first three quarters of 2024 reached 3.179 billion yuan, a YoY increase of 32.97%, with net profit attributable to shareholders surging 1,156.98% YoY to 187 million yuan [1] - Q3 2024 revenue was 1.206 billion yuan, up 49.27% YoY and 10.81% QoQ, with net profit attributable to shareholders increasing 432.26% YoY to 90 million yuan [1] - Gross margin improved significantly, reaching 24.93% in Q3 2024, up 10.76 percentage points YoY and 4.57 percentage points QoQ [1] Product and Market Performance - AI server products accounted for 42.45% of total revenue in the first three quarters of 2024, a YoY increase of 20.87 percentage points [2] - The company has secured batch orders for 800G high-speed switches, with 1.6T products under development [2] - R&D investment reached a historical high in Q3 2024, focusing on next-generation AI servers and high-speed switches [2] Financial Forecasts - Revenue is expected to grow to 4.529 billion yuan in 2024, 5.969 billion yuan in 2025, and 6.824 billion yuan in 2026 [3] - Net profit attributable to shareholders is projected to be 352 million yuan in 2024, 804 million yuan in 2025, and 956 million yuan in 2026 [3] - Gross margin is forecasted to improve to 24.3% in 2024, 31.3% in 2025, and 31.6% in 2026 [7] Industry and Technology Development - The company is focusing on core advantages in communication networks, AI servers, and low-orbit satellite technologies [2] - In the automotive sector, the company has developed products for autonomous driving, smart cockpits, and power energy, enhancing its competitiveness in the automotive electronics PCB market [2] Valuation Metrics - The company's P/E ratio is projected to be 75x in 2024, 33x in 2025, and 27x in 2026 [3] - The P/B ratio is expected to decrease from 6.7x in 2023 to 4.3x in 2026 [3]