Avary Holding(SZ:002938) Bank of China Securities·2025-12-16 05:54Investment Rating - The investment rating for the company is "Buy" with a market price of RMB 47.89 and a sector rating of "Outperform" [1][4]. Core Views - The company is expanding its AI production capacity in Thailand, which supports its "cloud-edge" full industry chain strategy. This investment is expected to enhance the company's capabilities in the AI application market [4][6]. - The company is projected to achieve revenues of RMB 411.55 billion, RMB 501.93 billion, and RMB 591.50 billion for the years 2025, 2026, and 2027 respectively, with corresponding net profits of RMB 45.45 billion, RMB 57.76 billion, and RMB 67.39 billion. The price-to-earnings ratios for these years are estimated at 24.4, 19.2, and 16.5 times [4][5]. Financial Summary - The company’s main revenue for 2025 is estimated at RMB 41,155 million, with a growth rate of 17.1% compared to the previous year. The EBITDA is projected to be RMB 7,170 million, and the net profit is expected to reach RMB 4,545 million, reflecting a growth rate of 25.5% [5][10]. - The company’s capital expenditure reached RMB 49.72 billion by the end of Q3 2025, indicating a significant increase in investment compared to the previous year [6][7]. - The company reported a revenue of RMB 268.55 billion for the first three quarters of 2025, a year-on-year increase of 14.34%, with a net profit of RMB 24.07 billion, up 21.23% [6][7]. Investment Strategy - The company is actively expanding its production capacity in various locations, including Huai'an, Thailand, and Kaohsiung, Taiwan, to meet the growing demand for AI-related products [6][7]. - The strategic investment in Thailand, amounting to RMB 42.97 billion, aims to build production facilities and enhance the company's product offerings in high-end HDI and other advanced PCB solutions [6][7].