DSBJ(002384) 申万宏源·2024-11-04 07:25Investment Rating - The investment rating for the company is "Buy" (maintained) [5][8]. Core Views - The company's Q3 2024 revenue showed a moderate recovery with a year-on-year increase of 11.37%, reaching 9.84 billion yuan, while the net profit attributable to shareholders was 507 million yuan, a slight decrease of 0.27% year-on-year [6][8]. - The company is positioned as the second largest in FPC and the third largest in PCB globally, with significant growth in its business related to Apple and Tesla [7][8]. - The company has been expanding its new energy vehicle (NEV) business, with revenues of 2.37 billion yuan, 6.36 billion yuan, and 3.81 billion yuan in 2022, 2023, and the first half of 2024, respectively [7][8]. - The financial strategy has led to a noticeable decrease in financial expense ratios, from 2.95% in 2019 to 0.56% in 2023, contributing to improved profitability [8]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported a revenue of 26.47 billion yuan, a year-on-year increase of 17.62%, while the net profit attributable to shareholders was 1.07 billion yuan, down 19.91% year-on-year [5][9]. - The gross margin for Q3 2024 was 14.65%, showing a slight decrease of 0.16 percentage points year-on-year, while the net profit margin was 5.16%, down 0.59 percentage points year-on-year [6][9]. Business Segments - The company has a diversified product portfolio, focusing on precision components, electronic circuit boards, and optoelectronic displays, with a strategic emphasis on the NEV sector [7][8]. - The LED business has been underperforming, with significant losses, but there are expectations for recovery in the future [8]. Valuation and Forecast - The profit forecast for 2024-2026 has been adjusted downwards due to losses in the LED business and fluctuations in the USD exchange rate, with net profit estimates revised to 1.9 billion yuan, 2.4 billion yuan, and 2.9 billion yuan for 2024, 2025, and 2026, respectively [8][9]. - The company is trading at a PE ratio of 28 for 2024, which is lower than the average PE of 35 for comparable companies, indicating potential upside [8].