Avary Holding(SZ:002938) Huaxin Securities·2024-11-12 10:27Investment Rating - The report maintains a "Buy" investment rating for the company [1]. Core Views - The company reported strong performance in Q3 2024, with revenue of 23.487 billion yuan, a year-on-year increase of 14.82%, and a net profit attributable to shareholders of 1.974 billion yuan, up 7.05% year-on-year [1]. - The PCB industry is benefiting from the AI trend, with a projected industry output value of 73.026 billion USD in 2024, reflecting a 5.0% year-on-year growth [1][3]. - The company is positioned as a high-end PCB solution provider, with significant capacity expansion plans to meet the demands of the AI era [3]. Summary by Sections Q3 Performance - In Q3 2024, the company achieved revenue of 10.36 billion yuan, a year-on-year increase of 16.14% and a quarter-on-quarter increase of 60.89%. The net profit attributable to shareholders was 1.19 billion yuan, up 15.26% year-on-year and 314.66% quarter-on-quarter [1]. - The gross profit margin for Q3 2024 was 23.62%, an increase of 8.14 percentage points quarter-on-quarter, while the net profit margin was 11.48%, up 7.02 percentage points quarter-on-quarter [1]. Industry Outlook - The recovery in consumer electronics is driving the PCB industry's growth, with AI empowering innovation in the sector. The demand for high-quality, high-speed, and high-precision PCBs is expected to rise due to the increasing performance requirements of AI terminals [1][3]. - The company is expanding its production capacity in various locations, including a 4.2 billion yuan investment in its Huai'an third park, which focuses on high-end HDI and SLP products, and a 2.5 billion USD investment in Thailand targeting automotive and server products [3]. Financial Forecast - The company is projected to achieve revenues of 38.088 billion yuan, 45.012 billion yuan, and 51.017 billion yuan for the years 2024, 2025, and 2026, respectively. The earnings per share (EPS) are forecasted to be 1.72 yuan, 2.16 yuan, and 2.59 yuan for the same years [4][6]. - The current stock price corresponds to a price-to-earnings (P/E) ratio of 20.1, 16.0, and 13.3 for the years 2024, 2025, and 2026, indicating the company's potential to benefit from the upgrading trend in consumer electronics [4].