Avary Holding(SZ:002938) Shanxi Securities·2024-11-01 10:33Investment Rating - The report maintains an "Accumulate-A" rating for the company [1][3]. Core Views - The company has shown stable revenue growth in the first three quarters of 2024, with a total revenue of 23.487 billion, representing a year-on-year increase of 14.82%. The net profit attributable to the parent company reached 1.974 billion, up 7.05% year-on-year [1][2]. - The demand for PCB (Printed Circuit Board) is expected to rise due to the AI-driven innovation in consumer electronics, particularly in AI smartphones and servers, which opens up significant growth opportunities for the company [2][3]. Financial Performance Summary - For Q3 2024, the company reported a revenue of 10.36 billion, a year-on-year increase of 16.14% and a quarter-on-quarter increase of 60.89%. The net profit for the same period was 1.19 billion, up 15.26% year-on-year and 314.66% quarter-on-quarter [1][2]. - The gross margin for Q3 was 23.62%, an increase of 0.78 percentage points year-on-year, attributed to improved operational efficiency during the peak season [2]. - The company is projected to achieve net profits of 3.732 billion, 4.517 billion, and 5.190 billion for the years 2024, 2025, and 2026 respectively, with year-on-year growth rates of 13.5%, 21.0%, and 14.9% [3][4]. Market Data - As of November 1, 2024, the closing price of the stock was 36.65 yuan, with a market capitalization of 84.975 billion [3][4]. - The estimated earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 1.61 yuan, 1.95 yuan, and 2.24 yuan respectively, with corresponding price-to-earnings (P/E) ratios of 23.3, 19.3, and 16.8 [3][4].