Investment Rating - The report maintains a "Buy" rating for the company, expecting a stock price increase of over 15% relative to the industry index in the next six months [4][17]. Core Views - The company is expected to benefit from stable revenue growth in 2024, driven by the AI wave, with projected revenue of 35.14 billion yuan, a year-on-year increase of 9.6% [1][8]. - The company has established a comprehensive product matrix for AI end-side consumer electronics, positioning itself well for future market opportunities [3][8]. - The report highlights the company's strong performance in the automotive and server PCB segments, with a significant revenue increase of 90.34% in 2024 [2][7]. Financial Summary - **Revenue Projections**: The company forecasts revenues of 32.07 billion yuan in 2023, increasing to 35.14 billion yuan in 2024, and further to 39.60 billion yuan in 2025, reflecting a compound annual growth rate (CAGR) of approximately 12% from 2024 to 2027 [1][9]. - **Net Profit**: The net profit is projected to rise from 3.29 billion yuan in 2023 to 3.62 billion yuan in 2024, with a continued upward trend to 5.73 billion yuan by 2027 [1][9]. - **Earnings Per Share (EPS)**: The EPS is expected to grow from 1.42 yuan in 2023 to 2.47 yuan in 2027, indicating a strong growth trajectory [1][9]. - **Valuation Metrics**: The price-to-earnings (P/E) ratio is projected to decrease from 20.7 in 2023 to 11.9 by 2027, suggesting improving valuation as earnings grow [1][9]. Market Demand and Product Segmentation - The report notes a recovery in market demand for smartphones and consumer electronics, supported by government policies such as trade-in programs and subsidies [2][3]. - Revenue from communication boards, consumer electronics, and computing boards is expected to be 24.24 billion yuan, 9.75 billion yuan, and 1.03 billion yuan respectively in 2024, with significant growth rates of 3.08%, 22.30%, and 90.34% [2][3]. Strategic Initiatives - The company is actively enhancing its capabilities in the automotive PCB market, with plans for significant capital expenditures to support R&D and market expansion [7][8]. - The establishment of the ONE AVARY platform aims to integrate technology and resources across the AI product value chain, enhancing competitive advantages [3][8].

Core Viewpoint - The company reported a revenue increase of 9.59% year-on-year for 2024, driven by market demand recovery and new product launches, while Q1 2025 showed a significant revenue growth of 20.94% year-on-year despite a quarter-on-quarter decline [1] Financial Performance - For 2024, the company achieved a total revenue of 35.14 billion yuan and a net profit of 3.62 billion yuan, with a year-on-year increase of 10.14% [1] - In Q1 2025, the company reported a revenue of 8.09 billion yuan, a year-on-year increase of 20.94%, but a quarter-on-quarter decrease of 30.61% [1] - The gross margin for 2024 was 20.76%, a decrease of 0.58 percentage points year-on-year, while the net margin was 10.30%, an increase of 0.05 percentage points year-on-year [1] Product Segmentation - Revenue from communication boards, consumer electronics and computer boards, and automotive and server boards for 2024 was 24.24 billion yuan, 9.75 billion yuan, and 1.03 billion yuan respectively, with year-on-year growth rates of 3.08%, 22.30%, and 90.34% [1] - AI-related products accounted for over 45% of the revenue in the consumer electronics and computer boards segment, which generated 9.75 billion yuan in 2024 [3] Strategic Initiatives - The company is focusing on AI integration across its product lines, establishing a comprehensive product matrix for AI consumer electronics, including AI smartphones, PCs, and glasses [3] - Significant capital expenditure is planned for 2025, targeting projects such as the Thailand facility, flexible board expansion, and digital transformation [4] - The company is advancing its automotive PCB product development and market entry, achieving mass production of radar computing boards and domain control boards in 2024 [4] Market Outlook - The recovery in consumer electronics demand, driven by policy support and AI technology penetration, is expected to provide substantial growth opportunities for the company [5] - Forecasted net profits for 2025-2027 are 4.13 billion yuan, 4.93 billion yuan, and 5.73 billion yuan respectively, with corresponding EPS of 1.82 yuan, 2.14 yuan, and 2.47 yuan [5]