DBG(SZ:300735) Orient Securities·2025-02-03 14:00Investment Rating - The report assigns a "Buy" rating to the company, with a target price of 30.90 CNY based on DCF valuation method [4][9]. Core Views - The company is expected to experience significant revenue growth driven by the recovery in consumer electronics and the expansion of its automotive electronics business, which is projected to create a second growth curve [8][9]. - The earnings per share (EPS) forecasts for 2024-2026 are adjusted to 0.33 CNY, 0.45 CNY, and 0.65 CNY respectively, reflecting a downward revision in the gross margin of the main business [4][9]. Financial Summary - Revenue is projected to grow from 5,402 million CNY in 2023 to 11,269 million CNY by 2026, with year-on-year growth rates of 29.3%, 35.5%, 27.1%, and 21.1% respectively [6][13]. - Operating profit is expected to fluctuate, with a decrease to 363 million CNY in 2024, followed by a recovery to 688 million CNY in 2026 [6][13]. - The net profit attributable to the parent company is forecasted to decline to 250 million CNY in 2024, before increasing to 502 million CNY in 2026 [6][13]. - The gross margin is anticipated to decrease to 12.3% in 2024, with a slight recovery to 13.0% by 2026 [6][13]. - The company’s market capitalization is approximately 20,760 million CNY, with a current share price of 27.05 CNY [7]. Business Expansion - The company plans to enhance its automotive electronics segment through the acquisition of AC Company, which focuses on automotive electronics EMS services, aiming to significantly boost its automotive electronics business [8][9]. - The automotive electronics business is expected to expand its product line and customer base, leveraging existing relationships with major clients such as Valeo and Huawei [8][9]. Market Performance - The company has shown a relative performance decline of 21.46% over the past three months, while the absolute performance over the last year has increased by 54.17% [7].