兴森科技：行业需求回暖，半导体业务有望提速

Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The report indicates that the industry demand is recovering, and the semiconductor business is expected to accelerate [5]. - In 2023, the company achieved revenue of 5.36 billion yuan, a year-on-year increase of 0.11%, while the net profit attributable to shareholders was 211 million yuan, a year-on-year decrease of 59.82% [5][6]. - The first quarter of 2024 showed a revenue of 1.39 billion yuan, a year-on-year increase of 10.92%, and a net profit attributable to shareholders of 25 million yuan, a year-on-year increase of 230.82% [5][6]. Financial Performance Summary - In 2023, the company's revenue was 5.36 billion yuan, with a gross profit margin of 23.32%, down 5.34 percentage points year-on-year [5][6]. - The net profit margin for 2023 was 3.94%, down 5.88 percentage points year-on-year [5][6]. - For Q1 2024, the gross profit margin was 17.07%, down 7.08 percentage points year-on-year, while the net profit margin increased to 1.79%, up 1.19 percentage points year-on-year [5][6]. Business Segment Analysis - The PCB business saw slight growth, with revenues of 4.09 billion yuan, a year-on-year increase of 1.50% [6]. - The semiconductor testing board and IC packaging substrate revenues were 1.09 billion yuan and 180 million yuan, with year-on-year changes of -5.45% and 4.78%, respectively [6]. - The report highlights that the company is investing continuously in the packaging substrate business, particularly in CSP packaging substrates, which contributed significantly to revenue [6]. Future Outlook - The company expects to benefit from the recovery of strategic customers in the high-end mobile phone business, with a projected net profit of 326 million yuan in 2024, 514 million yuan in 2025, and 728 million yuan in 2026 [6][11]. - The FCBGA packaging substrate project is anticipated to start small-scale production in the second quarter of 2024, with expectations to reach product yield levels comparable to leading overseas companies by the end of 2024 [6].