Avary Holding(SZ:002938) Orient Securities·2024-04-09 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 34.23 CNY based on a 21x PE valuation for 2024 [2][4]. Core Insights - March revenue growth significantly improved, with a year-on-year increase of 17% to 2.25 billion CNY, showing a notable acceleration compared to January and February [1][9]. - The company achieved a total revenue of 32.1 billion CNY in 2023, a decline of 11% year-on-year, with a net profit attributable to the parent company of 3.29 billion CNY, down 34% [1]. - The fourth quarter of 2023 saw a revenue of 11.6 billion CNY, a year-on-year growth of approximately 2% and a quarter-on-quarter increase of 30% [1]. Summary by Sections Revenue Performance - The company's revenue from communication boards grew by about 4% to 23.5 billion CNY in 2023, while revenue from consumer electronics and computer boards fell nearly 40% to 7.98 billion CNY [1]. - The automotive and server board segments saw a significant revenue increase of 71% to 539 million CNY in 2023, indicating strong growth potential in these areas [1]. Future Outlook - The company anticipates a recovery in global smartphone shipments in 2024, driven by new products such as AI smartphones and foldable phones [1]. - The company is expanding its presence in the automotive and server sectors, with plans for a new facility in Thailand expected to start production in 2025 [1]. Financial Projections - Earnings per share are projected to be 1.63 CNY, 1.87 CNY, and 2.14 CNY for 2024, 2025, and 2026 respectively, reflecting adjustments based on revenue and margin expectations [2][10]. - The gross margin is expected to stabilize around 21.6% in 2024, with a gradual increase to 22.3% by 2026 [2][10].