SHENGYI ELECTRONICS CO.(688183) 华创证券·2024-06-16 01:31Investment Rating - The report gives a "Recommend" rating to the company, citing its strong technology, product portfolio, and customer base, which are expected to benefit from the rapid development of the AI industry [3][141] Core Viewpoints - The company is positioned to benefit from the AI-driven demand for high-end PCBs, particularly in AI servers and high-speed switches, which are expected to drive its growth in the coming years [3][9][21] - The company has a strong foothold in the communication, server, and automotive PCB markets, with a diversified product matrix and a reputation for high-quality, high-density, and high-reliability products [21][22] - The AI industry's rapid growth is expected to significantly increase demand for high-layer, high-density, and high-speed PCBs, which aligns with the company's expertise and production capabilities [48][92] Industry Analysis - The AI industry is driving a surge in demand for high-performance PCBs, particularly in AI servers and high-speed switches, with global tech giants like Microsoft, Google, and Amazon increasing their capital expenditures in AI-related infrastructure [3][48] - The automotive industry's shift towards electrification, connectivity, and intelligence is expected to steadily increase demand for automotive PCBs, with the company's automotive electronics revenue growing significantly in 2023 [3][31] - The global PCB market is entering a new growth cycle, driven by the increasing demand for high-layer, high-density, and high-speed PCBs, particularly in AI, high-speed networks, and automotive systems [3][92] Company Analysis - The company has a strong technical foundation in high-speed, high-density, and high-layer PCBs, with a product portfolio that includes communication equipment boards, network equipment boards, and server boards, serving top-tier clients like Huawei, Amazon, and IBM [21][22][116] - The company has successfully developed AI-related PCB products, including motherboards and accelerator cards, which are already in mass production, and is actively collaborating with clients on 800G switch products [21][116] - The company's capacity expansion, particularly in its Dongcheng Phase IV facility, is expected to enhance its ability to meet the growing demand for AI-related PCBs, with a focus on high-layer and high-density products [21][116] Financial Projections - The company is expected to achieve significant revenue growth from 2024 to 2026, driven by the rapid expansion of its AI server and high-speed switch businesses, with projected revenues of 4.194 billion, 5.149 billion, and 6.344 billion yuan, respectively [136][137] - The company's profitability is expected to improve, with gross margins projected to increase from 21.76% in 2024 to 29.93% in 2026, driven by the higher margins of AI-related products and improved product mix [136][137] - The company's net profit is forecasted to grow from 160 million yuan in 2024 to 776 million yuan in 2026, reflecting the strong growth potential of its AI-related businesses and the overall improvement in its financial performance [136][137]