VGT(300476) Shanxi Securities·2025-06-09 09:59Investment Rating - The report assigns a "Buy-A" rating to the company, indicating a positive outlook for investment [6]. Core Views - The company is positioned as a leading player in the high-end PCB market, benefiting from the surge in AI computing demand, which is expected to drive significant growth opportunities [3][4]. - The company has established a "soft and hard" product layout through acquisitions, enhancing its competitive edge and market share [5][16]. - The PCB industry is projected to experience rapid growth driven by increased demand for high-value products, particularly in AI servers and automotive electronics [4][37]. Summary by Sections Company Market Performance - The company has shown strong market performance with a closing price of 100.20 yuan and a market capitalization of 856.92 billion yuan as of June 2025 [2]. Financial Data and Valuation - The company forecasts net profits of 46.50 billion yuan, 65.81 billion yuan, and 81.49 billion yuan for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 302.8%, 41.5%, and 23.8% [7]. - The projected earnings per share (EPS) for the same years are 5.39 yuan, 7.63 yuan, and 9.45 yuan, with corresponding price-to-earnings (P/E) ratios of 18.6, 13.1, and 10.6 [7]. Industry Growth Drivers - The demand for AI computing is expected to significantly increase the usage of PCBs in AI servers, with the global PCB industry projected to grow at a compound annual growth rate (CAGR) of 5.4% from 2024 to 2028, reaching over 90 billion USD by 2028 [4][37]. - The automotive industry's shift towards electrification, intelligence, and lightweight design is anticipated to drive substantial growth in the value of automotive PCBs, with the market expected to grow from 9.195 billion USD in 2024 to 11.205 billion USD by 2029 [56]. Product and Customer Strategy - The company has successfully integrated its product offerings through strategic acquisitions, enhancing its portfolio to include both rigid and flexible PCBs, thereby meeting diverse customer needs [80]. - The company maintains long-term partnerships with major clients such as NVIDIA, Tesla, AMD, and Microsoft, which strengthens its market position and provides a competitive advantage [5][16]. Operational Efficiency - The company has improved its operational efficiency and production capacity, with a focus on high-end products such as multi-layer and HDI boards, which are expected to dominate its revenue streams [84].