Avary Holding(SZ:002938) ZHONGTAI SECURITIES·2024-11-01 08:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown double-digit growth in Q3 despite foreign exchange disturbances, driven by the launch of new products by major clients and continuous market share expansion. The revenue growth has led to an increase in gross margin, and the company is expected to benefit from the AI wave, which is anticipated to further enhance performance [1] Financial Performance Summary - Revenue (Million CNY): - 2022A: 36,211 - 2023A: 32,066 - 2024E: 35,749 - 2025E: 42,482 - 2026E: 47,047 - Growth Rate (yoy%): - 2022A: 9% - 2023A: -11% - 2024E: 11% - 2025E: 19% - 2026E: 11% [1] - Net Profit (Million CNY): - 2022A: 5,012 - 2023A: 3,287 - 2024E: 3,607 - 2025E: 4,878 - 2026E: 5,655 - Growth Rate (yoy%): - 2022A: 51% - 2023A: -34% - 2024E: 10% - 2025E: 35% - 2026E: 16% [1] - Earnings Per Share (CNY): - 2022A: 2.16 - 2023A: 1.42 - 2024E: 1.56 - 2025E: 2.10 - 2026E: 2.44 [1] Market Position and Growth Drivers - The company is actively expanding its presence in multiple sectors, including AI terminals, servers, and automotive applications. The launch of AI-related products is expected to drive growth, particularly in the high-end HDI and SLP PCB markets. The company is also enhancing its production capacity in response to increasing demand for advanced technology products [1] - The company has established partnerships with major domestic and international clients in the server market, which is expected to contribute significantly to revenue growth in the coming years [1] Investment Recommendations - The company’s projected net profits for 2024, 2025, and 2026 are estimated at 3,607 million CNY, 4,878 million CNY, and 5,655 million CNY respectively. The price-to-earnings ratio is expected to be 23.5, 17.4, and 15.0 for the years 2024, 2025, and 2026 respectively. The recommendation remains a "Buy" rating [1]