Aohong Electronics(SH:605058) Huaxin Securities·2025-06-22 14:09Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance in the coming year [9]. Core Insights - The company has demonstrated strong revenue growth, with total operating income reaching 1.293 billion yuan in 2024, a year-on-year increase of 19.45%, and a net profit of 141 million yuan, up 6.45% [4]. - The launch of Nintendo's Switch 2 has exceeded expectations, with sales surpassing 3.5 million units within four days, indicating a strong market demand [5]. - The company is actively pursuing a globalization strategy to mitigate domestic price competition, achieving foreign sales of 364 million yuan, a growth of 25.09% [4]. - The demand for high-end PCB products is expected to rise due to the increasing need for computing power driven by AI applications, positioning the company favorably in this emerging market [6][8]. Summary by Sections Financial Performance - In 2024, the company achieved total operating revenue of 1.293 billion yuan and a net profit of 141 million yuan, with respective growth rates of 19.45% and 6.45% [4]. - The forecast for 2025-2027 indicates revenues of 1.854 billion yuan, 2.105 billion yuan, and 2.341 billion yuan, with EPS projected at 1.44 yuan, 1.71 yuan, and 1.96 yuan respectively [9][11]. Market Opportunities - The Switch 2's first-year sales are projected to reach 20 million units, which will benefit the company's PCB supply chain involvement [5]. - The company plans to invest 135 million yuan in a high-density interconnect (HDI) production technology upgrade project, expected to enhance its capabilities in high-end PCB manufacturing by Q1 2026 [8]. Competitive Positioning - The company is positioned to benefit from the growing demand for high-end PCBs in AI-related applications, with plans to expand its product offerings in this sector [6][9]. - The report highlights the company's strategic focus on enhancing its product penetration in emerging fields, particularly in AI computing infrastructure [8].