Investment Rating - The report maintains a "Recommended" investment rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [22]. Core Insights - The company's Q1 2025 revenue reached 1.579 billion yuan, representing a year-over-year increase of 78.55% and a quarter-over-quarter increase of 4.79%. The net profit attributable to shareholders was 200 million yuan, showing a year-over-year increase of 656.87% and a quarter-over-quarter increase of 37.63% [1]. - The report highlights strong growth driven by AI server demand, with expectations for new capacity and customers to continue contributing to revenue growth in the second half of the year [1][7]. - The company is experiencing significant improvements in product structure and profitability, with a gross margin of 29.84% and a net margin of 12.67% in Q1 2025, reflecting a substantial increase from previous periods [7]. Financial Performance Summary - Total revenue projections for the company are as follows: 2024A at 4.687 billion yuan, 2025E at 7.549 billion yuan, 2026E at 10.024 billion yuan, and 2027E at 11.654 billion yuan, with respective year-over-year growth rates of 43.2%, 61.1%, 32.8%, and 16.3% [3]. - The net profit attributable to shareholders is projected to grow from 332 million yuan in 2024A to 1.988 billion yuan in 2027E, with year-over-year growth rates of 1,428.2%, 206.5%, 55.8%, and 25.4% [3]. - The report indicates a significant increase in R&D investment, reaching 91 million yuan in Q1 2025, up 87.08% year-over-year, aimed at supporting the development of next-generation AI servers and high-speed switches [7]. Market Position and Future Outlook - The company is positioned to benefit from the rapid growth of the AI industry, with expectations for continued demand for AI servers and high-speed switches, particularly as major clients like Amazon ramp up production of AI-related products [7]. - The report anticipates that the company's capacity expansion and successful project progress in high-speed switches will drive sustained revenue growth, with profit forecasts for 2025-2027 set at 1.017 billion yuan, 1.585 billion yuan, and 1.988 billion yuan respectively [7].

Core Viewpoint - The company reported a significant turnaround in its financial performance for 2024, with a revenue increase of 43.2% year-on-year, driven by high demand for advanced multi-layer printed circuit boards, particularly in AI-related orders [1][2]. Financial Performance Summary - In 2024, the company achieved a total revenue of 4.69 billion, with a net profit of 0.332 billion, compared to a loss of 0.025 billion in the previous year. The gross margin improved to 22.7%, up by 8.2 percentage points, and the net margin reached 7.1%, an increase of 7.9 percentage points [1]. - In Q4 2024, revenue reached 1.51 billion, marking a year-on-year increase of 70.9% and a quarter-on-quarter increase of 25.0%. The net profit for this quarter was 0.145 billion, compared to a loss of 0.007 billion in the same period last year [1]. Product Application Areas - **Telecommunications**: The company made significant progress in high-speed network infrastructure, achieving breakthroughs in 800G switches and completing preliminary R&D for satellite communications, with mass production expected in 2025 [2]. - **Server Sector**: AI server products saw substantial growth, with revenue share rising to 49.0%. The company plans to increase R&D investment and expand production capacity to meet high-end product demand [2]. - **Automotive Electronics**: The company is steadily advancing in smart driving, power energy, and intelligent cockpit products, with expectations for continued rapid growth [2]. Future Growth Prospects - The company is positioned for multi-faceted growth in AI servers, 800G switches, satellite communications, and automotive electronics from 2025 to 2026. It is optimizing its product structure in the server sector and has developed several key clients, including Amazon [3]. - In the telecommunications sector, the company is actively collaborating with leading clients to develop products for 5.5G, 6G, satellite communications, and optical modules, with expectations for increased product pricing [3]. - In automotive electronics, the company is enhancing partnerships with global leaders in the electric vehicle sector, aiming for rapid growth in new customer orders [3]. Investment Outlook - The company has a strong competitive edge due to its deep engagement in telecommunications, high-performance computing (HPC), and automotive electronics, with a focus on core technologies and mainstream client resources. The ongoing release of new production capacity is expected to benefit its three main business lines, initiating a new growth cycle [4].