优化产品结构，一季度业绩稳步增长

Investment Rating - The report maintains a "Buy-A" investment rating for Shennan Circuits with a 6-month target price of 102.05 RMB [4][5] Core Views - Shennan Circuits achieved a 42.24% YoY increase in Q1 2024 revenue to 3.961 billion RMB, with net profit attributable to shareholders rising 83.88% YoY to 380 million RMB [1] - The company optimized its product structure, focusing on high-value-added areas such as data centers and automotive sectors, mitigating the impact of weak communication market demand [2] - In the automotive sector, orders grew by 50% YoY, supported by the ramp-up of the Nantong Phase III factory and successful development of overseas Tier 1 customers [2] - The company's FC-BGA packaging substrate products have completed sample certification and are in the production line verification stage, with 14-layer and below products already in mass production [3] Financial Performance and Projections - Revenue is projected to grow from 16.123 billion RMB in 2024 to 22.185 billion RMB in 2026, with net profit expected to increase from 1.745 billion RMB to 2.656 billion RMB over the same period [4] - The company's EPS is forecasted to rise from 3.40 RMB in 2024 to 5.18 RMB in 2026, with ROE improving from 11.9% to 14.0% [7] - Gross margin is expected to remain stable around 25-26% from 2024 to 2026, with operating margin improving from 11.4% to 12.5% [7] Business Development - In the data center sector, the company has made progress in the EGS platform and entered the AI accelerator card market [2] - The packaging substrate business maintained stable revenue through deepening existing markets and developing new clients, with storage and RF products achieving YoY order growth [3] - The Wuxi Phase II factory continues to improve capabilities and accelerate customer certification, while the Guangzhou packaging substrate project completed its first phase in Q4 2023 [3] Valuation Metrics - The company is trading at 28.8x 2024E PE and 3.4x 2024E PB, with a dividend yield of 0.4% [7] - EV/EBITDA is projected to decline from 14.2x in 2024 to 9.5x in 2026, indicating improving valuation attractiveness [7]