生益电子：深耕数通，蓄势待发

Investment Rating - Buy rating, first coverage [5] Core Views - The company, established in 1985, has grown into a leading enterprise in China's PCB industry, focusing on communication networks, computer/server, and automotive electronics sectors, while also catering to high-difficulty and high-demand special products [3][5] - According to Prismark's Q1 2024 PCB industry report, the company ranked 45th in global PCB industry revenue in 2023 [3][5] - The company has a strong technical capability, equipment configuration, and customer resources, positioning it well in the high-end PCB market [3][5] PCB Industry Overview - PCB is a critical interconnect component in electronic devices, widely used in communication electronics, consumer electronics, computers, automotive electronics, industrial control, medical devices, and aerospace [6] - Global PCB output value has shown a steady upward trend, with a CAGR of around 5% from 2017 to 2022 [6] - The trend towards thinner, smaller, and higher-frequency electronic products is driving the PCB industry towards higher density and performance [6] Automotive Electronics - The automotive industry is moving towards electrification, intelligence, and connectivity, increasing the demand for high-reliability PCBs in automotive electronics [6] - Automotive PCBs require rigorous testing and certification, often taking 1-3 years to pass supplier qualification [6] - With the rise of autonomous driving and new energy vehicles, automotive PCBs are evolving towards multi-layer, high-density interconnect (HDI), and high-frequency high-speed directions [6] Data Communication and AI Servers - The AI industry is experiencing rapid growth, driving demand for AI servers and high-speed network systems, which in turn increases the demand for large-size, high-speed, and multi-layer PCBs [7] - High-end servers typically require PCBs with 46 layers, high aspect ratios, high density, and high transmission speeds [7] - The company has developed AI-related products, including motherboards and accelerator cards, which have entered mass production, with key customers such as Amazon [7] Company's Technological Leadership - The company has over 30 years of R&D investment and technical accumulation, with leading technology in the PCB industry [7] - It can produce backplanes with 2-56 layers and server boards with 20-40 layers, and has the capability to produce HDI boards with 4-30 layers [7] - The company has successfully developed server customers, including Amazon, and its AI-related projects are in mass production [7] Financial Performance - In the first three quarters of 2024, the company achieved revenue of 3.179 billion yuan, a year-on-year increase of 32.97%, and net profit of 187 million yuan, a year-on-year increase of 1156.98% [51] - The gross profit margin and net profit margin were 21.68% and 5.87%, respectively, showing significant improvement in profitability [51] Future Outlook - The company is focusing on AI and high-performance computing, with ongoing projects in advanced data communication fields [141] - With the expansion of production capacity, the company is expected to further increase its market share in AI-related products [141] - The company's AI server projects are expected to continue growing in 2024, driven by increasing demand for AI products [141]