DSBJ(SZ:002384) Great Wall Securities·2024-06-13 03:01Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [15]. Core Insights - The company's revenue for 2023 was 33.651 billion yuan, representing a year-on-year growth of 6.56%, while the net profit attributable to shareholders was 1.965 billion yuan, a decline of 17.05% year-on-year [2][3]. - The company is focusing on its dual-core strategy of "Consumer Electronics + New Energy," with significant growth in its new energy business, which saw a revenue increase of 168.39% year-on-year in 2023 [7]. - The report highlights the challenges faced in the LED business, which has led to short-term profit pressure, but anticipates improvements through better product structure and partnerships with international manufacturers [7]. Financial Performance Summary - Revenue and Profit: - 2022 revenue: 31.580 billion yuan; 2023 revenue: 33.651 billion yuan; 2024E revenue: 37.684 billion yuan [2]. - 2022 net profit: 2.368 billion yuan; 2023 net profit: 1.965 billion yuan; 2024E net profit: 2.340 billion yuan [2]. - Growth Rates: - Revenue growth rate for 2023: 6.6%; expected growth rates for 2024 and 2025 are 12.0% and 12.8%, respectively [11]. - Net profit growth rate for 2023: -17.1%; expected growth rates for 2024 and 2025 are 19.1% and 23.6%, respectively [11]. - Margins: - Gross margin for 2023 was 15.18%, down 2.42 percentage points year-on-year; net margin was 5.84%, down 1.66 percentage points year-on-year [3]. Business Segment Performance - New Energy Business: - Revenue for the new energy segment in 2023 was 6.361 billion yuan, with a year-on-year growth of 168.39% [7]. - The first quarter of 2024 saw new energy revenue of 1.829 billion yuan, a year-on-year increase of 56.46% [7]. - LED Business: - Revenue for LED display devices in 2023 was 1.190 billion yuan, a decline of 29.24% year-on-year, primarily due to decreased market demand [3]. - PCB and Automotive Electronics: - The electronic circuit segment generated revenue of 23.261 billion yuan in 2023, with a growth of 6.61% year-on-year [3]. Future Outlook - The company is expected to benefit from the increasing demand for AI-driven products, particularly in the PCB business, as the global AI smartphone shipment is projected to reach 170 million units in 2024 [4]. - The anticipated release of production capacity in the new energy sector is expected to contribute positively to profits in the coming years [7]. Valuation Metrics - The report projects earnings per share (EPS) of 1.37 yuan for 2024, 1.69 yuan for 2025, and 2.00 yuan for 2026, with corresponding price-to-earnings (P/E) ratios of 12X, 9X, and 8X [7].