DSBJ(SZ:002384) Huachuang Securities·2024-03-13 16:00Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 21.3 yuan [2]. Core Views - The major shareholder's private placement demonstrates confidence, and a turnaround in 2024 is expected. The company plans to raise 1.5 billion yuan through a private placement at an issue price of 11.49 yuan, which is seen as a positive response to market conditions and a commitment to its dual-driven strategy in consumer electronics and automotive electronics [2]. - The company's capital structure is expected to improve following the private placement, which will alleviate financial burdens due to a high debt ratio of 62.01% as of Q3 2023 [2]. - Demand from key customers remains stable, and new terminal markets for module boards are anticipated to contribute to growth over the next five years. The company is well-positioned in the soft board sector, with increasing barriers to entry due to the complexity of manufacturing processes [2]. - The automotive business is accelerating its global expansion, with a clear path to achieving a unit value of over 20,000 yuan per vehicle. The integration of overseas facilities is expected to enhance market share and introduce new products [2]. - Looking ahead to 2024, growth is expected to be driven by key customers in both display and automotive electronics, with a focus on improving market share in soft boards and traditional businesses [2]. Financial Summary - Total revenue is projected to grow from 31.58 billion yuan in 2022 to 43.94 billion yuan in 2025, with a compound annual growth rate (CAGR) of approximately 12.9% [3]. - Net profit attributable to shareholders is expected to decrease from 2.367 billion yuan in 2022 to 2.017 billion yuan in 2023, before rebounding to 2.809 billion yuan in 2025 [3]. - Earnings per share (EPS) is forecasted to rise from 1.38 yuan in 2022 to 1.64 yuan in 2025, reflecting a positive growth trajectory [3]. - The company’s price-to-earnings (P/E) ratio is projected to be 11 times in 2024, indicating a favorable valuation compared to peers [3].