Sytech(SH:600183) Guotou Securities·2024-04-28 21:01Investment Rating - The report maintains a "Buy -A" investment rating for the company, with a six-month target price of 19.69 CNY, based on a 27 times PE for 2024 [4][5]. Core Insights - The company reported a significant year-on-year increase in revenue and net profit for Q1 2024, with revenue reaching 4.423 billion CNY, up 17.77%, and net profit at 392 million CNY, up 58.25% [2][3]. - The electronic industry is gradually recovering, with the company actively capturing orders in key markets such as photovoltaic, inverters, overseas 5G, servers, mobile HDI, automotive electronics, and some consumer electronics [2][3]. - The company has achieved notable technological advancements, including certifications for AI products from well-known clients, and is recognized as the first in the industry to release biodegradable and recyclable copper-clad laminates [3]. Financial Forecast - Revenue projections for the company are 18.91 billion CNY in 2024, 21.59 billion CNY in 2025, and 24.68 billion CNY in 2026, with net profits expected to be 1.72 billion CNY, 2.07 billion CNY, and 2.48 billion CNY respectively [4][9]. - The report indicates a projected net profit margin improvement, with net profit margins expected to rise from 9.1% in 2024 to 10.0% by 2026 [9][10]. Market Position - The company has been proactive in R&D, ensuring its products meet advanced market requirements and gaining recognition from leading manufacturers across various sectors, including AI servers and high-end electronics [3][10]. - The report highlights the company's strategic focus on optimizing procurement models and adapting to market demands, which has contributed to its recent financial performance [2][3].