Investment Rating - The report does not explicitly state an investment rating for the company Core Insights - The global PCB market is showing signs of recovery in 2024, driven by demand from AI technology, XR, and consumer electronics, with a projected market value of $2.55 trillion [1] - The company, Guanghe Technology, is the leading domestic PCB supplier for servers in China but has a low global market share of only 4.25% as of 2020 [4] - The company's revenue from AI server products accounts for approximately 25% of its server revenue, indicating a growing segment within its product offerings [15] Summary by Sections Market Overview - The global PCB market is expected to grow by 5% in 2024, with a notable increase in demand for multilayer boards, HDI, and packaging substrates [1][2] - The server and data storage PCB market is projected to reach approximately $8.2 billion in 2023 [3] Company Performance - Guanghe Technology's revenue increased from 1.03 billion yuan in 2018 to 2.68 billion yuan in 2023, reflecting a compound annual growth rate (CAGR) of 21% [14] - The company reported a 36.7% year-on-year revenue growth in the first three quarters of 2024 [14] Product and Customer Base - The company primarily focuses on high-layer printed circuit boards, with around 70% of its revenue coming from server PCB products [13] - Major clients include Dell, Inspur, Foxconn, and Quanta Computer, with the top five customers accounting for about 70% of sales [13] Financial Metrics - The gross margin for the company reached 33.3% in the first three quarters of 2024, with a net margin of 18.4% [17] - The company’s net profit attributable to shareholders was 440 million yuan in 2023, with a 51.3% year-on-year increase in the first three quarters of 2024 [18] Operational Challenges - The company faces limited bargaining power with both upstream suppliers and downstream customers due to high customer concentration and reliance on a few key suppliers [22][24] - Despite improvements in gross margin, the company struggles to pass on rising material costs to customers [25]
主打服务器PCB，但市占率还很低，广合科技：业绩有改善，但上下游“夹心饼干”缺议价能力