WUS(SZ:002463) Great Wall Securities·2024-03-28 16:00Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [2][7][22]. Core Views - The company achieved double growth in revenue and profit, with a 2023 revenue of 89.38 billion yuan, up 7.23% year-on-year, and a net profit of 15.13 billion yuan, up 11.09% year-on-year. The fourth quarter of 2023 saw a revenue of 28.56 billion yuan, a quarter-on-quarter increase of 23.15% [3][10]. - The company's PCB business revenue reached 85.72 billion yuan in 2023, growing 8.09% year-on-year, with a gross margin improvement to 32.46% [3][12]. - The company is focusing on high-end PCB products, particularly in the AI server and HPC sectors, which have seen a significant increase in revenue contribution [3][12]. - Continuous investment in R&D is evident, with R&D expenses of 5.39 billion yuan in 2023, a 15.04% increase year-on-year, leading to the development of new products and patents [17][21]. - The company is expanding its global business presence, with overseas sales reaching 72.18 billion yuan, a 14.67% increase year-on-year, while domestic sales declined [14][16]. Summary by Sections Revenue and Profit Growth - The company reported a total revenue of 89.38 billion yuan for 2023, with a year-on-year growth of 7.23%. The net profit for the same period was 15.13 billion yuan, reflecting an 11.09% increase [2][10]. - In Q4 2023, the company achieved a revenue of 28.56 billion yuan, marking a quarter-on-quarter growth of 23.15% [10]. PCB Business Optimization - The PCB business generated 85.72 billion yuan in revenue in 2023, with an 8.09% year-on-year increase and a gross margin of 32.46% [3][12]. - The company is focusing on high-end applications, particularly in AI and automotive sectors, which have shown significant growth in revenue contribution [3][12]. R&D Investment - The company increased its R&D spending to 5.39 billion yuan in 2023, a 15.04% increase from the previous year, resulting in multiple new product developments and patents [17][21]. - Key R&D projects include advancements in materials and technologies for high-speed and high-reliability PCBs, particularly for automotive applications [21]. Global Business Expansion - The company’s overseas sales reached 72.18 billion yuan, a 14.67% increase year-on-year, while domestic sales fell by 17.22% [14][16]. - The company is enhancing its production capabilities in Thailand to better serve overseas clients and improve operational efficiency [14].