Darbond Technology (SH:688035) Minsheng Securities·2024-02-20 16:00Investment Rating - The report gives a "Buy" rating for the company, indicating a positive outlook for future performance [83]. Core Insights - The company is positioned in a high-demand sector for advanced packaging materials, particularly in integrated circuits and electric vehicle battery applications, with significant growth potential driven by domestic market needs and technological advancements [83][86]. - The report highlights the scarcity of domestic manufacturers for integrated circuit packaging materials, suggesting a strong opportunity for the company to capture market share as the demand for advanced packaging accelerates [86]. - The company has shown impressive revenue growth in its new energy application materials, with a CAGR of 72.9% from 2018 to 2022, driven by the rapid increase in new energy vehicle sales [23][86]. Summary by Sections Integrated Circuit Packaging Materials - The company has a competitive edge in the integrated circuit packaging materials sector, with a focus on four key products: underfill, AD glue, die attach film, and thermal interface materials, which are currently undergoing validation with multiple design and testing companies [63][87]. - Revenue from integrated circuit packaging materials is expected to grow significantly, with projections of 1 billion yuan in 2023 and a growth rate of 50% and 53% in 2024 and 2025 respectively [77]. Smart Terminal Packaging Materials - The smart terminal packaging materials segment is anticipated to recover as consumer electronics demand stabilizes, with expected revenues of 1.55 billion yuan in 2023, and growth rates of 35% and 28% in 2024 and 2025 respectively [78]. - The company currently holds a significant market share in supplying materials for Apple's TWS earphones, with an estimated share of 60-70% [22]. New Energy Application Materials - The company is a leading player in the battery glue market, with a market share of approximately 29% in 2022, benefiting from the rapid growth of the new energy vehicle sector [64][68]. - Revenue from new energy application materials is projected to be 6.32 billion yuan in 2023, with growth rates of 7%, 5%, and 3% expected through 2025 [78]. Financial Projections - The company is expected to achieve a net profit of 1.22 billion yuan in 2023, with a projected increase to 2.06 billion yuan by 2025, reflecting a strong growth trajectory [30][83]. - The report indicates that the company's current valuation is attractive compared to its peers, with a projected PE ratio of 40x for 2023, decreasing to 24x by 2025 [83].