Avary Holding(SZ:002938) KAIYUAN SECURITIES·2025-04-30 14:32Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported rapid revenue growth in Q1 2025, achieving revenue of 8.087 billion yuan, a year-on-year increase of 20.94%, although profit growth was slightly below expectations due to increased financial expenses [1] - The company is expected to benefit from the launch of new models by major clients and the continuous improvement of AI functionalities in the second half of the year, leading to a positive turning point in performance [1] - The company has adjusted its profit forecasts for 2025 and 2026, with expected net profits of 4.214 billion yuan for 2025 and 5.008 billion yuan for 2026, corresponding to PE ratios of 15.7 and 13.2 respectively [1] Summary by Sections Financial Performance - In Q1 2025, the company achieved a revenue of 8.087 billion yuan, with a year-on-year growth of 20.94% and a quarter-on-quarter decline of 30.61% [1] - The net profit attributable to shareholders was 488 million yuan, down 1.83% year-on-year and down 70.34% quarter-on-quarter [1] - The gross margin was 17.83%, a decrease of 2.54 percentage points year-on-year, and the net margin was 6.01%, down 1.42 percentage points year-on-year [1] Market Position and Growth Opportunities - The company is positioned to benefit from the ongoing wave of AI terminal innovations, with a significant increase in the value of PCB driven by the demand for upgraded consumer electronics [2] - The company is actively expanding into new fields such as automotive, servers, and optical modules, with successful product launches and collaborations with Tier 1 clients [3] - The company is expected to see rapid revenue growth in the AI server sector and has made significant advancements in automotive and optical module products [3] Financial Projections - Revenue projections for 2025, 2026, and 2027 are 40.126 billion yuan, 47.815 billion yuan, and 51.619 billion yuan respectively, with year-on-year growth rates of 14.2%, 19.2%, and 8.0% [4] - The projected net profit for 2025, 2026, and 2027 is 4.214 billion yuan, 5.008 billion yuan, and 5.803 billion yuan respectively, with corresponding year-on-year growth rates of 16.4%, 18.8%, and 15.9% [4] - The company’s PE ratio is projected to decrease from 15.7 in 2025 to 11.4 in 2027, indicating an attractive valuation over the forecast period [4]