Kinwong(603228) 华金证券·2024-06-13 23:00Investment Rating - The report gives Jingwang Electronics a "Buy-A" rating, considering its continuous high-end and globalization strategy [3][39] Core Views - The company is expected to achieve revenue of 12.397 billion, 14.287 billion, and 16.467 billion yuan in 2024, 2025, and 2026, respectively, with net profits attributable to shareholders of 1.231 billion, 1.497 billion, and 1.806 billion yuan [39] - The PE ratios for 2024-2026 are projected at 17.5x, 14.4x, and 11.9x, respectively, indicating undervaluation compared to peers [39] - The company's PCB business is expected to grow at a 15% annual rate from 2024 to 2026, with a stable gross margin of 21% [27] - Other business segments are projected to grow at 20% annually from 2024 to 2026, maintaining a high gross margin of 95% [1] Financial Projections - Revenue is expected to grow from 10.757 billion yuan in 2023 to 16.467 billion yuan in 2026, with a CAGR of 15.2% [33] - Net profit margin is forecasted to improve from 8.7% in 2023 to 11.0% in 2026 [33] - ROE is projected to increase from 10.2% in 2023 to 14.5% in 2026 [33] - EPS is expected to grow from 1.11 yuan in 2023 to 2.15 yuan in 2026 [33] Industry and Company Overview - Jingwang Electronics is a leading PCB manufacturer in China, ranking 10th globally and 3rd among domestic companies in 2023 [36] - The company has five major production bases in China and is expanding internationally with a new facility in Thailand [30] - The global PCB market is expected to grow at a 5.4% CAGR from 2023 to 2028, with server and automotive sectors being the fastest-growing segments [36] - The company has made significant technological breakthroughs in high-end PCB products, including server boards, 800G optical modules, and automotive applications [36] Valuation Comparison - Jingwang Electronics' PE ratio is lower than the average of comparable companies (17.5x vs 25.6x for 2024E) [11] - The company's valuation multiples (PE, PB, EV/EBITDA) are expected to decline significantly from 2024 to 2026, indicating potential upside [33]