Kinwong(SH:603228) Huachuang Securities·2025-11-12 08:57Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [2][23]. Core Insights - The company achieved a revenue of 11.083 billion yuan in the first three quarters of 2025, representing a year-on-year increase of 22.08%. The net profit attributable to shareholders was 949 million yuan, up 4.83% year-on-year, while the net profit excluding non-recurring items decreased by 6.36% to 776 million yuan [2]. - In Q3 2025, the company reported a revenue of 3.987 billion yuan, a year-on-year increase of 24.19% and a quarter-on-quarter increase of 6.28%. The net profit attributable to shareholders was 299 million yuan, up 20.44% year-on-year but down 8.06% quarter-on-quarter [2]. - The report highlights the company's strategic focus on AI and automotive sectors, indicating a robust growth potential driven by high demand in AI servers and advanced optical modules [8]. Financial Performance Summary - The company is projected to achieve total revenue of 15.256 billion yuan in 2025, with a year-on-year growth rate of 20.5%. The net profit attributable to shareholders is expected to reach 1.394 billion yuan, reflecting a growth rate of 19.2% [4]. - The earnings per share (EPS) is forecasted to be 1.42 yuan in 2025, with a price-to-earnings (P/E) ratio of 47 [4]. - The company plans to invest 5 billion yuan in its Zhuhai Jinwan base to enhance production capacity, particularly in high-density interconnect (HDI) technology for AI servers [8]. Market Position and Future Outlook - The company has become the largest automotive PCB supplier globally, with significant growth expected in the automotive electronics sector as electric and intelligent vehicles gain traction [8]. - The report anticipates that the company's product iterations will enhance average selling prices (ASP) and profitability, with a target price set at 89.6 yuan based on a 35x valuation for 2026 [8].