Core Insights - The company reported a revenue of 36.77 billion yuan for 2024, a year-on-year increase of 9.27%, but a net profit attributable to shareholders of 1.086 billion yuan, a decrease of 44.74% [1] - In Q1 2025, the company achieved a revenue of 8.602 billion yuan, a year-on-year increase of 11.07%, with a net profit of 456 million yuan, up 57.55% [1] - The LED business negatively impacted overall performance, with a revenue drop of 35.48% in 2024 [1] Revenue Breakdown - Electronic circuit products generated 24.801 billion yuan in revenue, a growth of 6.62% [1] - LED display devices saw revenue of 768 million yuan, down 35.48% [1] - Touch panels and LCD modules achieved 6.370 billion yuan, an increase of 31.02% [1] - Precision components generated 4.540 billion yuan, up 9.08% [1] LED Business Performance - The company optimized operations in the LED segment, resulting in a 164 million yuan asset disposal loss and a 595 million yuan impairment loss [1] - Excluding these factors, the net profit decline for 2024 would be approximately 5% [1] - In Q1 2025, the LED business reduced its losses by several million yuan, although it did not achieve profitability [1] New Energy Business Growth - The new energy segment reported a revenue of 8.65 billion yuan in 2024, a year-on-year increase of 36.98%, accounting for 23.52% of total revenue [2] - In Q1 2025, the new energy business generated 2.63 billion yuan, a growth of 43.79%, increasing its revenue share to 30.57% [2] - Key products in this segment include vehicle-mounted FPC, liquid cooling plates, battery housings, and vehicle displays [2] Impact of Tariffs - The company’s export revenue was 30.583 billion yuan in 2024, with less than 5% directly exported to the U.S., limiting the impact of increased tariffs [2] - Most export tariffs are borne by customers, indicating a limited short-term effect from U.S. tariff increases [2] - The company is expanding its overseas production bases, with successful operations in Thailand, Mexico, and the U.S. [2] Investment Outlook - The company’s product lines cover electronic circuits, optoelectronic displays, and precision manufacturing, focusing on consumer electronics and new energy sectors [3] - Projected revenues for 2025 to 2027 are 40.619 billion, 48.147 billion, and 52.581 billion yuan, with respective growth rates of 10%, 19%, and 9% [3] - Expected net profits for the same period are 2.703 billion, 3.188 billion, and 3.486 billion yuan, with significant year-on-year growth [3]

Group 1 - In 2024, the company achieved revenue of 36.77 billion, a year-on-year increase of 9.27%, but net profit attributable to shareholders dropped by 44.74% to 1.09 billion [1] - The fourth quarter of 2024 saw revenue of 10.30 billion, a year-on-year decrease of 7.59%, with net profit attributable to shareholders plummeting by 97.11% to 0.018 billion [1] - The significant decline in net profit for 2024 was primarily due to asset disposal losses of 0.164 billion and asset impairment losses of 0.595 billion related to the integration and optimization of the LED business [1] Group 2 - The company expects to turn around its LED business starting in 2025, benefiting from the AI-driven demand in the ICT infrastructure sector, with a projected net profit growth of 50-60% in Q1 2025 [2] - The PCB segment is anticipated to benefit from both volume and price increases due to the rise of AI applications, with the company maintaining an optimistic long-term growth outlook [2] - The company has raised its profit forecasts for 2025 and 2026, estimating net profits of 3.067 billion and 3.616 billion respectively, with a new forecast for 2027 at 4.203 billion [2] Group 3 - The company adheres to a "dual-wheel drive" strategy, focusing on core products like PCB and precision components while expanding into new markets and fields [3] - In the new energy vehicle sector, the company reported a revenue of 8.65 billion in 2024, a year-on-year increase of 36.98%, accounting for 23.52% of total revenue [3] - Products such as vehicle-mounted FPC, liquid cooling plates, battery housings, and vehicle displays have established a competitive advantage and gained widespread customer recognition [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 367.70 billion yuan in 2024, a year-on-year increase of 9.27%, but the net profit attributable to shareholders decreased by 44.74% to 10.86 billion yuan [4] - The decline in net profit was primarily due to asset disposal and impairment losses related to the LED business, amounting to 1.64 billion yuan and 5.95 billion yuan respectively [4] - The company anticipates a significant recovery in Q1 2025, with net profit expected to grow by 50-60% year-on-year, driven by increased demand from AI and ICT infrastructure [4] - Long-term growth prospects remain optimistic, with revised profit forecasts for 2025, 2026, and 2027 set at 30.67 billion yuan, 36.16 billion yuan, and 42.03 billion yuan respectively [4] Financial Performance Summary - In 2024, the company achieved a revenue of 367.70 billion yuan, with a gross margin of 14.02% and a net margin of 2.95% [4] - The fourth quarter of 2024 saw a revenue of 103.04 billion yuan, a year-on-year decrease of 7.59% [4] - The company’s financial metrics for 2025E include a projected revenue of 429.62 billion yuan and a net profit of 30.67 billion yuan, reflecting a year-on-year growth of 182.5% [8] Business Strategy and Growth Drivers - The company is pursuing a "dual-wheel drive" strategy focusing on PCB and precision structural components, while expanding into new markets and sectors [6] - The new energy vehicle segment reported a revenue of 86.5 billion yuan in 2024, a year-on-year increase of 36.98%, contributing to 23.52% of total revenue [6] - The company is well-positioned to benefit from the growing demand for AI-driven consumer electronics, with its FPC revenue ranking second globally [5]

Core Viewpoint - Dongshan Precision's LED business is undergoing optimization, leading to a significant profit decline in 2024, but a strong recovery is expected in Q1 2025 driven by AI and new energy sectors [2][4]. Financial Performance - In 2024, the company achieved revenue of 36.77 billion yuan, a year-on-year increase of 9.27%, while net profit attributable to shareholders was 1.09 billion yuan, a decrease of 44.74% [2]. - The fourth quarter of 2024 saw revenue of 10.30 billion yuan, a year-on-year decrease of 7.59%, and a net profit of 18 million yuan, down 97.11% year-on-year [2]. - The decline in profits is attributed to asset disposal and impairment losses totaling 1.64 billion yuan and 5.95 billion yuan, respectively [2]. Future Outlook - The company forecasts a 50-60% increase in net profit for Q1 2025, benefiting from the growing demand for AI in ICT infrastructure [2]. - Long-term performance is expected to improve with the LED business turning profitable and the PCB sector benefiting from AI-driven demand [2]. Industry Trends - The rapid penetration of edge AI is increasing demand for flexible printed circuits (FPC), with the company ranking second globally in FPC revenue [3]. - The new energy vehicle sector is projected to grow significantly, with revenue from this segment reaching 8.65 billion yuan in 2024, a year-on-year increase of 36.98% [4]. Strategic Initiatives - The company is implementing a "dual-wheel drive" strategy, focusing on core products like PCB and precision components while exploring new markets and clients [4].