VGT(SZ:300476) Tai Ping Yang·2024-04-22 01:30Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock over the next six months [19]. Core Insights - The company reported a total revenue of 7.93 billion yuan for 2023, a slight increase of 0.58% year-on-year, while the net profit attributable to shareholders decreased by 15.09% to 671 million yuan [19]. - In Q1 2024, the company achieved a revenue of 2.39 billion yuan, representing a significant year-on-year growth of 36.06%, and a net profit of 210 million yuan, up 67.72% year-on-year [19]. - The company is benefiting from an upgrade in product structure and increased downstream demand, particularly in AI server shipments and high-performance PCB demand [19]. - The gross margin for 2023 was 20.70%, an increase of 2.55 percentage points year-on-year, while Q1 2024 gross margin was 19.49%, showing a slight decline year-on-year but an increase of 2.31 percentage points quarter-on-quarter [19]. - The company has completed the acquisition of PSL, enhancing its competitive advantage and forming a more complete industrial chain [19]. Financial Projections - Revenue projections for 2024, 2025, and 2026 are 11.26 billion yuan, 13.59 billion yuan, and 16.48 billion yuan, with year-on-year growth rates of 41.96%, 20.71%, and 21.26% respectively [19]. - Net profit projections for the same years are 1.17 billion yuan, 1.48 billion yuan, and 1.87 billion yuan, with growth rates of 74.79%, 25.97%, and 26.23% respectively [19]. - The report indicates that the company will benefit from the explosion in AI demand and increased orders from major automotive electronics clients, leading to a rise in both product volume and pricing [19].