LUXSHARE-ICT(002475) 华鑫证券·2024-03-27 16:00Investment Rating - The report assigns an "Accumulate" investment rating for the company [2]. Core Insights - The company is gradually increasing its share in Apple's supply chain, leveraging its advantages in yield and technology integration to participate deeply in the assembly of leading consumer electronics products such as iPhone, AirPods, and Apple Watch [3]. - The demand for AI servers is surging, and the company's copper interconnect technology is positioned to benefit from this growth, offering cost-effective solutions for data centers [4]. - The company is capitalizing on the trends of automotive intelligence and electrification, expanding its product offerings in the automotive electronics sector and establishing strategic partnerships with major automotive manufacturers [5]. Summary by Sections 1. Company Overview - The company has established a strong presence in the consumer electronics, automotive, communication, and medical industries, focusing on vertical integration from components to systems [12]. - It has a diverse product line across various application scenarios, including smart displays, wearables, and automotive components [12][13]. 2. Financial Projections - Revenue projections for 2023, 2024, and 2025 are estimated at 249.64 billion, 296.55 billion, and 359.13 billion yuan respectively, with corresponding EPS of 1.56, 2.00, and 2.51 yuan [7][113]. - The company has maintained a strong revenue growth trend, particularly in the consumer electronics sector, which has been a significant contributor to its overall revenue [23][25]. 3. Market Positioning - The company has deepened its integration into Apple's supply chain, with its largest customer accounting for 73% of total revenue in 2022, reflecting its strong supply capabilities [25]. - The automotive business has seen rapid growth, with revenue increasing from 0.84 billion yuan in 2015 to 6.15 billion yuan in 2022, showcasing a compound annual growth rate of 32.86% [27]. 4. R&D and Innovation - The company has consistently increased its R&D investment, reaching 8.44 billion yuan in 2022, which supports its technological advancements and product innovation [30]. - It has implemented effective cost management strategies, resulting in a significant reduction in expense ratios over recent years [29]. 5. Strategic Partnerships - The company has signed strategic cooperation agreements with major automotive manufacturers, enhancing its capabilities as a Tier 1 supplier [5][18]. - It is actively pursuing opportunities in the AI server market, leveraging its proprietary technologies to meet the growing demand for high-performance computing solutions [4][71].