Investment Rating - The report assigns an "Accumulate" rating for the company with a target price of 31.05 CNY over a 12-month period [1]. Core Viewpoints - The company, Wanyuantong, specializes in PCB products and has been expanding its market presence since its establishment in 2011. It operates two production bases in Kunshan and Dongtai, Jiangsu, and its products are widely used in consumer electronics, automotive electronics, industrial control, home appliances, and communication devices [5][11]. - The PCB market is experiencing steady growth, driven by emerging technologies such as 5G, cloud computing, and the Internet of Things (IoT). The global PCB industry is projected to grow from 80.92 billion USD in 2021 to 101.56 billion USD by 2026, with a CAGR of 4.65% from 2021 to 2026 [5][45]. - The company has established long-term stable relationships with numerous well-known clients across various sectors, including automotive electronics and industrial control [5][72]. Financial Performance - The company's total revenue has increased from 681 million CNY in 2019 to 1,043 million CNY in 2024, with a five-year CAGR of 8.90%. In Q1 2025, the revenue was 242 million CNY, reflecting a year-on-year growth of 12.12% [5][20]. - The net profit attributable to the parent company has shown strong growth, rising from 38 million CNY in 2019 to 123 million CNY in 2024, with a five-year CAGR of 26.48% [5][22]. - The company's gross margin has improved due to better product structure optimization and cost control, with a gross margin of 23.41% in Q1 2025 [25][27]. Product Structure and Market Position - The company's main business segments include multilayer boards, double-sided boards, and single-sided boards, with multilayer boards' revenue share increasing significantly, reaching 41.34% in 2024 [29]. - The company has a diverse product range, including standard PCBs, metal substrates, and high-frequency boards, catering to various applications in consumer electronics, automotive, and industrial sectors [41][42]. Industry Outlook - The PCB industry is currently in its fifth growth cycle, benefiting from the rapid expansion of 5G infrastructure and the increasing demand for electric vehicles [45][46]. - The automotive electronics market is expected to grow significantly, with the market size projected to reach 148.6 billion USD by 2026, reflecting a CAGR of 6.12% [59].
万源通（920060）：专注于PCB产品生产，下游保持众多优质客户