DSBJ(002384) 华泰证券·2025-03-18 01:46Investment Rating - The report maintains a "Buy" rating for the company with a target price of 39.90 RMB [6][4]. Core Views - The company is expected to benefit from new products from major North American clients, which may lead to a revaluation of its stock. The target PE for 2025 has been raised to 25.0x due to increased market risk appetite for technology stocks [1][4]. - The company's mobile phone flexible circuit board business is anticipated to be the main source of profit growth in 2025, while the precision components segment is expected to see improved profitability as new factories come online [2][4]. - Long-term growth opportunities are identified in the North American market, particularly with the anticipated launch of foldable phones and AI glasses by major clients [3][4]. Summary by Sections Short-term Outlook - The flexible circuit board business is projected to be the primary driver of profit growth in 2025, supported by new low-cost models and upgrades from North American clients [2]. - The LED display segment is expected to continue facing demand pressures, with limited chances for profit recovery in 2025 [2]. - The precision components segment is forecasted to improve profitability as new factories in Yancheng, Mexico, and Kunshan start generating profits in the second half of 2024 [2]. Medium to Long-term Outlook - The company is positioned to capture new growth opportunities with the expected launch of foldable phones and AI glasses by a major North American client, which could significantly expand the flexible circuit board market [3]. - As a core supplier for another major client in the automotive sector, the company is well-placed to meet the growing demand for components related to robotics and battery structures [3]. Financial Projections - The company’s projected revenues for 2024, 2025, and 2026 are 37.83 billion RMB, 45.11 billion RMB, and 51.26 billion RMB, respectively, reflecting growth rates of 12.41%, 19.25%, and 13.64% [5][12]. - The net profit attributable to the parent company is forecasted to be 1.63 billion RMB in 2024, 2.72 billion RMB in 2025, and 3.64 billion RMB in 2026, with significant growth expected in 2025 [5][12]. - The report highlights an increase in the target PE ratio to 25.0x for 2025, up from a previous estimate of 18.9x, reflecting the company's competitive positioning and growth prospects [4][12].