Avary Holding(SZ:002938) Shenwan Hongyuan Securities·2025-07-15 14:43Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong performance expectation relative to the market [6]. Core Insights - The company's net profit for the first half of 2025 is projected to increase by 52.79% to 60.62% year-on-year, driven by changes in product structure, improved capacity utilization, and stable yield in new product lines [6]. - The company has established a comprehensive AI edge matrix, covering flexible printed circuit boards (FPC), high-density interconnect boards (HDI), and rigid printed circuit boards (R-PCB), with applications in smartphones, wearable devices, and automotive electronics [6]. - Significant growth in revenue from AI server-related products is noted, with the company being a supplier for iPhone SLP mainboards and enhancing its HDI capabilities to meet AI server demands [6]. - The company is strategically positioning itself in the optical module market with a focus on high-end products, aiming to capture market share in AI PCB products [6]. - The capital expenditure (Capex) for 2025 is expected to reach 5 billion, nearly doubling from the previous year, to support advanced manufacturing projects and capacity expansion [6]. Financial Data and Profit Forecast - Total revenue is projected to grow from 35,140 million in 2024 to 38,383 million in 2025, reflecting a year-on-year growth rate of 9.2% [2]. - The net profit attributable to the parent company is forecasted to increase from 3,620 million in 2024 to 4,024 million in 2025, with a growth rate of 11.2% [2]. - The earnings per share (EPS) is expected to rise from 1.56 in 2024 to 1.74 in 2025 [2]. - The gross margin is anticipated to improve from 20.8% in 2024 to 21.9% in 2025 [2]. - The return on equity (ROE) is projected to be 11.4% in 2025, indicating a strong profitability outlook [2].