LUXSHARE-ICT(SZ:002475) Tianfeng Securities·2025-04-30 04:35Investment Rating - The investment rating for the company is "Buy" with a maintained rating for the next six months [6][18]. Core Views - The company's performance in 2024 is in line with expectations, driven by horizontal expansion, vertical integration, and a strengthened global layout [2][3]. - The company achieved a revenue of 268.795 billion yuan in 2024, representing a year-over-year increase of 15.91%, and a net profit attributable to the parent company of 13.3665 billion yuan, up 22.03% year-over-year [2][3]. - For Q1 2025, the company reported total revenue of 61.788 billion yuan, a year-over-year increase of 17.90%, with a net profit of 3.044 billion yuan, up 23.17% year-over-year [3]. Financial Performance Summary - In 2024, the revenue breakdown by business segments is as follows: - Computers: 9.002 billion yuan, up 20.15% - Automotive: 13.758 billion yuan, up 48.69% - Communications: 18.360 billion yuan, up 26.29% - Consumer Electronics: 224.094 billion yuan, up 13.65% - Others: 3.581 billion yuan, up 4.13% [2]. - The gross profit margins for these segments are 18.9%, 16.1%, 16.4%, 9.1%, and 18.9% respectively, with slight changes year-over-year [2]. - The company expects a net profit for H1 2025 to be between 6.475 billion and 6.745 billion yuan, representing a year-over-year increase of 20-25% [3]. Business Strategy and Growth - The company is focusing on a three-pronged strategy of "scene ecology, AI empowerment, and global collaboration" to drive long-term growth [3]. - The vertical integration strategy aims to extend the ODM product line from components to complete systems, while horizontal expansion continues to diversify the product offerings across various sectors including smart home and healthcare [3]. - In the automotive sector, the company is emphasizing high-voltage and high-speed wiring harnesses, with significant new project wins expected to ramp up production in 2025 [5]. Financial Projections - The financial projections for the company are as follows: - Revenue is expected to grow from 231.905 billion yuan in 2023 to 412.358 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 15% [11]. - The net profit attributable to the parent company is projected to increase from 10.953 billion yuan in 2023 to 24.007 billion yuan in 2027, reflecting a CAGR of around 17% [11]. - The company’s earnings per share (EPS) is forecasted to rise from 1.51 yuan in 2023 to 3.31 yuan in 2027 [11].