Kinwong(SH:603228) Minsheng Securities·2025-03-27 11:05Investment Rating - The report gives a "Buy" rating for the company, with a target price based on projected earnings growth and market positioning [4][6]. Core Viewpoints - The company is a leading domestic PCB manufacturer with steady revenue growth, achieving a CAGR of 14.17% from 2019 to 2023, with revenues increasing from 6.332 billion to 10.757 billion yuan [1][18]. - The PCB industry is expected to grow significantly, driven by demand in consumer electronics, automotive, and AI markets, with a projected market size of 90.4 billion USD by 2028 [2][40]. - The company has a strong technological foundation and diversified product offerings, positioning itself well to capitalize on the AI wave and automotive electronics growth [3][4]. Summary by Sections Company Overview - The company, established in 1993, specializes in the R&D, production, and sales of various PCB products, including rigid boards, flexible boards, and HDI boards, serving multiple sectors such as automotive electronics and medical devices [1][11]. - Revenue increased from 6.332 billion yuan in 2019 to 10.757 billion yuan in 2023, with a net profit of 936 million yuan in 2023, reflecting a decline due to market conditions but a rebound expected in 2024 [18][19]. PCB Industry Insights - The PCB market is projected to reach 90.4 billion USD by 2028, with a CAGR of 5.4% from 2023 to 2028, driven by growth in consumer electronics and automotive sectors [2][40]. - The automotive sector is seeing increased demand for PCBs due to the rise of electric vehicles, with each vehicle requiring significantly more PCBs compared to traditional models [83][85]. Technological and Product Development - The company has established six production bases and twelve factories, focusing on high-end products and advanced technologies, including HDI and flexible circuit boards [3][11]. - The company has successfully launched several high-tech products in data centers and AI servers, indicating strong market validation and customer acceptance [3][4]. Financial Forecast and Investment Recommendations - The company is expected to achieve revenues of 12.423 billion, 14.907 billion, and 18.171 billion yuan from 2024 to 2026, with corresponding net profits projected at 1.222 billion, 1.605 billion, and 2.061 billion yuan [4][5]. - The report emphasizes the company's strategic positioning in the automotive and AI server markets, suggesting significant growth potential [4][6].