SHENGYI ELECTRONICS CO.(SH:688183) Changjiang Securities·2025-04-01 09:15Investment Rating - The report maintains a "Buy" rating for the company [6][7]. Core Insights - In 2024, the company achieved operating revenue of 4.687 billion yuan, a year-on-year increase of 43.19%, and a net profit attributable to shareholders of 332 million yuan, a staggering year-on-year growth of 1428.23% [2][4]. - The company's gross margin and net margin for 2024 were 22.73% and 7.08%, respectively, reflecting increases of 8.17 percentage points and 7.84 percentage points year-on-year [2][4]. - The company has successfully developed AI-related products, with server product orders accounting for 48.96% of total orders in 2024, contributing significantly to its profitability [10]. Summary by Sections Financial Performance - The company reported total operating revenue of 4.687 billion yuan for 2024, with a gross profit of 1.065 billion yuan, resulting in a gross margin of 22.73% [16]. - The net profit attributable to shareholders reached 332 million yuan, with an EPS of 0.40 yuan [16]. Business Strategy - The company focuses on high-end markets, achieving significant breakthroughs in the communications sector, particularly in 800G high-end switches, and expanding its presence in the AI server market [10]. - The company is also advancing in the automotive electronics sector, with steady progress in core product lines related to intelligent driving and energy management [10]. Future Outlook - The company plans to implement a high-density interconnect circuit board project, with an expected annual production capacity of 250,000 square meters, to meet the growing demand for AI products [10]. - Forecasts indicate that the company will achieve net profits of 997 million yuan, 1.414 billion yuan, and 1.858 billion yuan for 2025, 2026, and 2027, respectively, with corresponding PE ratios of 25.16, 17.74, and 13.51 [6][10].