Avary Holding(SZ:002938) Huaan Securities·2024-05-24 09:00Investment Rating - The investment rating for the company is "Accumulate" (首次) [1] Core Views - The report highlights a recovery in the consumer electronics market, driven by AI leading to new demand for PCBs [1][2] - The company reported a significant revenue increase of 52.2% year-on-year in April 2024, with a total revenue of 22.0 billion yuan [1][6] - The global smartphone market is expected to see a resurgence, with AI smartphones projected to account for nearly 15% of total smartphone shipments in 2024 [2][8] Summary by Sections Consumer Electronics Market Recovery - The company achieved a revenue of 66.9 billion yuan in Q1 2024, a slight increase of 0.3% year-on-year, with a gross margin of 20.4% [6] - The consumer electronics market is gradually recovering, with major brands launching new products, contributing to a narrowing decline in smartphone shipments [6][8] - The report notes that the global smartphone market saw a decline of 3.5% in 2023, but the trend is expected to reverse in 2024 [6][8] AI Driving New PCB Demand - The rise of AI technologies, particularly since the introduction of ChatGPT, has created new opportunities in the PCB market, especially for AI servers and related products [8] - The global market for server and storage PCBs is projected to grow from 8.2 billion USD in 2023 to 13.8 billion USD by 2028, with a compound annual growth rate of 11.0% [8] - AI PC products are anticipated to become mainstream, further driving demand for PCBs [2][8] Financial Forecasts - The company’s projected net profits for 2024, 2025, and 2026 are 37.45 billion yuan, 44.03 billion yuan, and 47.92 billion yuan respectively, with corresponding EPS of 1.61, 1.90, and 2.07 yuan [2][11] - The report forecasts a revenue growth of 12.0% in 2024, followed by 10.4% in 2025 and 7.3% in 2026 [11][12]