VGT(300476) 华安证券·2025-01-27 01:52Investment Rating - The investment rating for Shenghong Technology is "Buy" [2][11] Core Viewpoints - Shenghong Technology is a high-end PCB core supplier, with its server PCB business opening a second growth curve for the company. The company is focusing on niche growth markets such as AI computing, high-end servers, and new energy vehicles to counteract the weak demand in consumer electronics since 2023 [5][6] - The PCB industry is showing signs of recovery, with the server application segment experiencing the fastest growth. The overall market size for server and data storage PCBs is expected to grow from USD 9.781 billion in 2024 to USD 14.221 billion by 2028, with a CAGR of 11.6% from 2023 to 2028 [7][50] - The demand for AI chips is strong, driving the need for PCB upgrades as server products must keep pace with the generational changes in server chips [8][73] Summary by Sections Company Overview - Shenghong Technology has become a leading PCB core supplier over the past two decades, with a wide range of applications in sectors such as new energy, automotive electronics, and AI [22][23] - The company has a strong technical foundation, with over 1,000 R&D personnel and more than 290 patents in the PCB field [23][36] - The company has achieved stable revenue growth, with operating income increasing from CNY 2.442 billion in 2017 to CNY 7.931 billion in 2023 [39] Market Trends - The PCB industry is experiencing a recovery, with inventory levels improving and demand gradually returning. The global PCB market is projected to reach USD 73.026 billion in 2024, with China accounting for over 50% of the market share [42][44] - The automotive PCB market is expected to grow significantly, driven by the increasing penetration of electric vehicles, with the market value projected to reach USD 14.5 billion by 2026 [78][79] AI and Server Demand - The demand for AI servers is rapidly increasing, with the Chinese market expected to reach USD 12.4 billion by 2028. The growth is driven by the need for high-performance computing and AI applications [61][62] - Shenghong Technology is actively participating in the innovation and development of server and AI computing applications, achieving significant breakthroughs in high-layer HDI products [53][54] Financial Projections - The company is expected to achieve operating revenues of CNY 111.45 billion, CNY 146.12 billion, and CNY 165.06 billion for the years 2024, 2025, and 2026, respectively, with corresponding net profits of CNY 11.68 billion, CNY 15.51 billion, and CNY 18.60 billion [11][106]