VGT(SZ:300476) Ping An Securities·2025-03-13 11:28Investment Rating - The report maintains a "Recommended" investment rating for the company, with a current stock price of 69.84 CNY [1]. Core Views - The company is experiencing rapid growth in its operating performance, driven by strong demand for AI-related products, with a projected revenue increase of 35.3% to 10.73 billion CNY in 2024 and a net profit increase of 72.9% to 1.16 billion CNY [3][7]. - The company is positioned as a core supplier in the AI PCB market, benefiting from the increasing demand for high-end products and the expansion of production capacity in overseas markets [7][8]. Financial Performance Summary - Revenue and Profit Forecasts: - 2024 revenue is expected to reach 10.73 billion CNY, a 35.3% increase from 2023, while net profit is projected at 1.16 billion CNY, a 72.9% increase [3][7]. - For Q1 2025, net profit is anticipated to be between 780 million CNY and 980 million CNY, representing a year-on-year increase of 320% [7]. - Earnings Per Share (EPS): - EPS is forecasted to be 1.37 CNY in 2024, 4.99 CNY in 2025, and 6.85 CNY in 2026, reflecting significant growth [8][10]. - Profitability Ratios: - Gross margin is expected to improve from 20.7% in 2023 to 34.1% by 2026, while net margin is projected to rise from 8.5% to 24.2% over the same period [10]. - Valuation Metrics: - The price-to-earnings (P/E) ratio is expected to decrease from 89.7 in 2023 to 10.2 by 2026, indicating improved valuation as earnings grow [10]. Market Position and Strategy - The company is leveraging its technological and production advantages to capture the growing demand for AI PCBs, with a focus on high-end products and new material applications [7][8]. - The expansion of production capacity in Thailand and Vietnam is expected to further enhance the company's long-term growth prospects [7].