Avary Holding(SZ:002938) Shenwan Hongyuan Securities·2025-05-05 04:15Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Insights - The company reported a revenue of 8,087 million yuan in Q1 2025, representing a year-on-year increase of 20.94%, while the net profit attributable to the parent company was 488 million yuan, a decrease of 1.83% year-on-year [7] - The gross margin for Q1 2025 was 17.83%, down 2.54 percentage points year-on-year, indicating continued pressure on profitability [7] - The company is expanding its product matrix in AI edge products, including flexible printed circuit boards (FPC), high-density interconnect boards (HDI), and rigid printed circuit boards (R-PCB), with applications in smartphones, wearable devices, automotive electronics, and AI servers [7] - The company anticipates a revenue growth of 9.6% in 2024, driven by demand for smartphones and AI terminals, and is actively expanding into automotive and server markets [7] - The company has achieved significant growth in the AI server sector, enhancing its HDI capabilities to meet the demands of AI server development [7] - The company plans to increase its capital expenditure to 5 billion yuan in 2025, nearly doubling from 2.844 billion yuan in 2024, to support advanced manufacturing projects [7] Financial Data and Profit Forecast - The total revenue forecast for 2025 is 38,383 million yuan, with a year-on-year growth rate of 9.2% [6] - The net profit attributable to the parent company is projected to be 4,037 million yuan in 2025, reflecting an 11.5% year-on-year increase [6] - The earnings per share (EPS) is expected to be 1.74 yuan in 2025, with a projected price-to-earnings (PE) ratio of 16 [6]