SLC(SZ:002106)2024-05-30 14:00Investment Rating - The report indicates a positive outlook for the company, anticipating a recovery in performance in 2024 due to the expected AI PC replacement wave [1]. Core Insights - The company is positioned as a key supplier of touch screens for laptops to major clients such as Xiaomi, Honor, Lenovo, HP, DELL, and ASUS, which are expected to launch AI PCs compatible with Microsoft's Copilot [17][7]. - The global PC market is projected to recover in 2024, with a forecasted single-digit growth in notebook shipments, driven by the establishment of the AI PC ecosystem and the introduction of new models [20]. - The company has reported significant growth in revenue and profit for Q1 2024, with revenue reaching 1.468 billion yuan, a year-on-year increase of 27.34%, and net profit of 117 million yuan, up 448.08% compared to the previous year [27]. Company Overview and Performance - The company specializes in producing upstream materials and touch components for flat panel displays, with main products including ITO conductive glass, color filters, TFT-LCD panels, and capacitive touch screens [38]. - In Q1 2024, the company achieved a substantial increase in both revenue and profit, attributed to improved capacity utilization, production efficiency, and reduced product costs [27]. Market Behavior - The report notes that since 2020, the number of shareholders has been decreasing while the average number of shares held per shareholder has been increasing, indicating a higher concentration of shares [35]. - There has been a notable increase in northbound capital inflow, with the number of shares held by deep stock connect reaching a new high [32].