DSBJ(SZ:002384) Huachuang Securities·2024-10-30 22:11Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expectation to outperform the benchmark index by over 20% in the next six months [1][16]. Core Views - The company's performance in the first three quarters of 2024 met expectations, with revenue of 26.466 billion yuan, a year-on-year increase of 17.62%, while net profit attributable to shareholders decreased by 19.91% to 1.067 billion yuan [1]. - The third quarter of 2024 saw revenue of 9.838 billion yuan, up 11.37% year-on-year, and net profit of 507 million yuan, showing a slight decline of 0.27% year-on-year but a significant quarter-on-quarter increase of 86.82% [1]. - The company is expected to rebound as it strengthens its focus on AI hardware and the new energy sector, with significant growth in its new energy business, which achieved revenue of 6.160 billion yuan in the first three quarters, up 36.89% year-on-year [1]. Financial Performance Summary - Revenue for 2023 is projected at 33.651 billion yuan, with a year-on-year growth rate of 6.6%. For 2024, revenue is expected to rise to 38.499 billion yuan, reflecting a growth rate of 14.4% [2]. - The net profit attributable to shareholders is forecasted to decline to 1.753 billion yuan in 2024, a decrease of 10.8% compared to 2023, but is expected to rebound significantly in 2025 with a projected profit of 3.002 billion yuan, representing a growth of 71.3% [2]. - The company’s earnings per share (EPS) is expected to be 1.03 yuan in 2024, with a price-to-earnings (P/E) ratio of 28 [2]. Business Outlook - The company is positioned to benefit from the upcoming AI smartphone era, with new product innovations expected to drive a replacement cycle and enhance the value of flexible printed circuit boards (FPC) [1]. - The new energy business is anticipated to maintain strong growth momentum, supported by the recovery of core customer operations and the introduction of new product lines [1]. - The strategic focus on major clients and the integration of traditional and new business lines is expected to mitigate losses from traditional sectors, particularly in LED [1].