Investment Rating - The report maintains a "Strong Buy" investment rating for the company [2][6]. Core Insights - The company plans to invest 4.3 billion yuan in its Thailand base in 2026 to expand production capacity for high-end HDI and HLC products, aiming to provide comprehensive PCB solutions for the rapidly growing AI application market [6]. - The investment project is expected to enhance the company's AI PCB production capacity significantly, potentially reaching over 6 billion yuan in output value by 2027 [6]. - Short-term revenue for the company has shown a decline due to earlier customer inventory adjustments, with Q4 performance expected to be under pressure from exchange rate challenges [6]. - The company is well-positioned for medium to long-term growth, driven by hardware innovations and AI applications across various sectors, including wearable technology and robotics [6]. - Revenue projections for 2025-2027 are set at 38.3 billion, 47.9 billion, and 57.5 billion yuan, respectively, with corresponding net profits of 3.95 billion, 5.33 billion, and 7.01 billion yuan [6]. Financial Data and Valuation - Total revenue for 2023 is projected at 32.066 billion yuan, with a year-on-year decline of 11%, followed by a recovery with growth rates of 10% in 2024 and 9% in 2025 [12]. - The company's earnings per share (EPS) are forecasted to be 1.42 yuan in 2023, increasing to 3.03 yuan by 2027 [13]. - The price-to-earnings (PE) ratio is expected to decrease from 33.8 in 2023 to 15.8 in 2027, indicating a potential undervaluation as earnings grow [13]. - The return on equity (ROE) is projected to improve from 11.4% in 2023 to 17.8% in 2027, reflecting enhanced profitability [13].

Core Viewpoint - The company reported a solid financial performance for the first three quarters of the year, with revenue of 26.86 billion yuan, a year-on-year increase of 14.3%, and a net profit attributable to shareholders of 2.41 billion yuan, up 21.9% year-on-year, indicating strong growth in both revenue and profit [1] Financial Performance Summary - In Q3, the company achieved revenue of 10.48 billion yuan, a year-on-year increase of 1.2% and a quarter-on-quarter increase of 26.4% [1] - The net profit attributable to shareholders in Q3 was 1.17 billion yuan, down 1.3% year-on-year but up 57.7% quarter-on-quarter [1] - The gross margin for Q3 was 23.1%, a decrease of 0.5 percentage points year-on-year but an increase of 2.8 percentage points quarter-on-quarter [1] - The net profit margin for Q3 was 11.1%, down 0.4 percentage points year-on-year but up 2.2 percentage points quarter-on-quarter [1] Acquisition and Strategic Moves - The company announced a cash acquisition and capital increase of 357 million yuan for Wuxi Huayang Technology, which will result in a 53.68% stake in the company [1] - Wuxi Huayang Technology specializes in the production of vehicle-mounted modules and the research and development of sensors, enhancing the company's competitiveness in the automotive electronics sector [2] - The acquisition is expected to strengthen the company's capabilities in advanced processes and system integration in automotive PCB applications [2] Market Outlook - The company anticipates a recovery in profits in Q4, driven by strong sales of major clients and increased orders in the supply chain [2] - The company is also expanding its AI-PCB high-end capacity, with successful certification from key clients, which is expected to contribute to future revenue growth [2] - The period from 2025 to 2027 is projected to be a significant innovation phase for major clients, with new product developments expected to drive demand and technological advancements [3]