LUXSHARE-ICT(SZ:002475) Guotai Junan Securities·2024-04-25 08:02Investment Rating - The report maintains a "Buy" rating for Luxshare Precision (002475) with a target price of 61.80 CNY [5][8]. Core Views - The company continues to show strong growth in Q1 2024, with a robust mid-year guidance. The growth is driven by its leading positions in communications, consumer electronics, and automotive products. The explosion of AI servers and the penetration of AI terminals are expected to propel high-quality growth for the company [4][7]. - The company achieved a net profit attributable to shareholders of 10.953 billion CNY in 2023, representing a year-on-year increase of 19.53%. The Q1 2024 net profit was 2.471 billion CNY, up 22.45% year-on-year [4][7]. - The report forecasts EPS of 1.91 CNY for 2024, 2.30 CNY for 2025, and 2.80 CNY for 2026, reflecting the company's strong growth trajectory [5][7]. Summary by Sections Financial Performance - In 2023, the company reported total revenue of 231.905 billion CNY, an 8.4% increase from 2022. The operating profit was 11.431 billion CNY, a 2% increase, while the net profit attributable to shareholders was 10.953 billion CNY, a 20% increase [7][9]. - The projected revenue for 2024 is 306.217 billion CNY, with a growth rate of 32% [7][9]. Business Segments - The communication business is accelerating, with a focus on high-speed interconnect products. The demand for copper interconnects is expected to expand due to the increased usage of high-performance copper cables [4][7]. - The consumer electronics segment is anticipated to grow continuously, driven by AI applications. The company is deepening its partnerships with major clients in the smartphone and automotive sectors [4][7]. Market Position - Luxshare Precision is recognized as an industry leader, benefiting from its comprehensive solutions in high-speed interconnects, including 224G high-speed copper cables and connectors [4][7]. - The company is actively expanding its presence in the automotive sector, focusing on smart cockpit and intelligent driving products, which are expected to contribute to future growth [4][7].