DSBJ(002384) 国盛证券·2025-01-14 03:11Investment Rating - The report gives an initial "Buy" rating for the company [4]. Core Views - The company is focusing on its core business areas, particularly in PCB and new energy sectors, to strengthen its competitive advantages. The revenue for Q3 2024 was 9.838 billion yuan, a year-on-year increase of 11.37%, while the net profit attributable to the parent company was 507 million yuan, a slight decrease of 0.27% [1]. - The company is positioned as the second largest FPC manufacturer globally and the third largest PCB manufacturer, benefiting from the increasing demand for high-density, lightweight components in mobile devices and emerging technologies like AI and AR/VR [2]. - The precision manufacturing segment is growing rapidly, particularly in the new energy vehicle market, with revenues reaching approximately 6.160 billion yuan in the first three quarters of 2024, a year-on-year increase of about 36.89% [3]. Summary by Sections Business Overview - The company has a well-established position in the PCB market, with significant acquisitions enhancing its product offerings. It has expanded its PCB product line to include flexible, rigid, and rigid-flex boards, which are widely used in various applications including mobile phones and electric vehicles [13][14]. - The precision components segment is increasingly focused on the new energy vehicle market, with a growing portfolio of products such as battery housings and structural components [15]. Financial Performance - The company reported a revenue of 33.651 billion yuan in 2023, a 6.6% increase from the previous year, while the net profit was 1.965 billion yuan, down 17.1% year-on-year. The forecast for 2025 and 2026 indicates revenues of 46.355 billion yuan and 54.214 billion yuan, respectively, with net profits expected to rise significantly [5][4]. - The company has maintained a low expense ratio, with improvements in gross and net profit margins over the years, despite some fluctuations due to market conditions [25][32]. Market Position and Strategy - The company is leveraging its strong customer relationships and focusing on high-growth areas such as AI and new energy vehicles to drive future growth. It aims to enhance its competitive edge through continuous R&D investment and strategic acquisitions [22][38]. - The report highlights the company's commitment to innovation, with R&D expenses increasing from 480 million yuan in 2018 to 1.16 billion yuan in 2023, representing a growing focus on technological advancement [38].