Kunshan Dongwei Technology (SH:688700) Shanghai Aijian Securities·2025-12-25 08:04Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance [6]. Core Insights - The company is a leading manufacturer of electroplating equipment, holding over 50% market share in vertical continuous electroplating equipment in China. The demand for high-end electroplating equipment is expected to continue growing, driven by the expansion of AI servers and overseas PCB production [6]. - The global PCB industry is projected to recover, with a 7.6% year-on-year growth expected in 2025, reaching a market value of $79.1 billion. High-layer and high-reliability PCBs are anticipated to see significant growth [6]. - The report highlights that the market has underestimated the company's growth potential, focusing primarily on PCB capacity expansion rather than the technological upgrades required for high-layer and high-reliability PCBs [6]. Financial Data and Profit Forecast - The company’s projected total revenue for 2025 is estimated at 10.64 billion yuan, with a year-on-year growth rate of 41.8%. The net profit attributable to shareholders is expected to be 1.47 billion yuan, reflecting a 112.5% increase [5][6]. - The gross margin is projected to improve gradually, reaching 36.5% by 2027, while the return on equity (ROE) is expected to rise to 13.3% in the same year [5][6]. - The company’s earnings per share (EPS) is forecasted to be 0.49 yuan in 2025, increasing to 1.09 yuan by 2027 [5][6]. Industry and Company Situation - The report emphasizes the strong growth potential in the PCB equipment market, which is expected to grow from approximately $7.1 billion in 2024 to $10.8 billion by 2029, with a compound annual growth rate (CAGR) of 8.7% [6]. - The company is well-positioned to benefit from the ongoing transition to high-end electroplating processes, which require advanced technology and consistent quality control [6]. - The report notes that the company has accumulated significant expertise in high-end electroplating technology, which is expected to enhance its competitive edge and profitability [6].