Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company achieved a revenue of 5.373 billion yuan in the first three quarters of 2025, representing a year-on-year growth of 23.48%, and a net profit attributable to shareholders of 131 million yuan, marking a turnaround from losses [1] - The CSP packaging substrate's capacity utilization is expected to improve significantly due to the recovery in the storage chip industry, which is a key driver for the company's overall performance in the third quarter [2] - The company has a comprehensive coverage of advanced PCB processes, positioning it well for long-term growth in the AI server market [3] Summary by Sections Financial Performance - In Q3 2025, the company reported a revenue of 1.947 billion yuan, a year-on-year increase of 32.42%, and a net profit of 103 million yuan, indicating a successful turnaround [1] - The forecast for 2024 shows a revenue of 5.817 billion yuan, with a growth rate of 8.53%, while net profit is expected to be -198.29 million yuan [11] Business Segments - The PCB business is showing stable growth, with HDI and SLP segments performing well, although the multi-layer PCB segment has lagged behind competitors [2] - The CSP packaging substrate is benefiting from the recovery in the storage chip sector, leading to improved profitability [4] Market Outlook - The demand for AI servers is anticipated to drive rapid growth in HDI and SLP segments, with further potential for CSP substrate price increases as market conditions improve [2] - The company is actively expanding its production capacity and enhancing its product mix to capture opportunities in the automotive market and increase the share of RF products [4]

Core Viewpoint - The company reported a revenue increase for 2024 but a significant decline in net profit, indicating challenges in profitability despite revenue growth [1] Financial Performance - In 2024, the company achieved a revenue of 5.817 billion yuan, a year-on-year increase of 8.53%, but reported a net profit of -0.198 billion yuan, a year-on-year decline of 193.88% [1] - For Q1 2025, the company reported a revenue of 1.580 billion yuan, a year-on-year increase of 13.77%, with a net profit of 0.009 billion yuan, a year-on-year decline of 62.24% [1] Business Segments - The PCB sample business is stable, with an optimized customer and product structure; revenue from the HDI board and SLP business grew due to strategic customer recovery in high-end mobile phones, generating 860.7646 million yuan in revenue and 136.1930 million yuan in net profit [2] - The FCBGA packaging substrate business faced high costs and losses from subsidiaries, with total expenses of 734.0358 million yuan for the FCBGA project, and losses of 131.7017 million yuan from Yixing Silicon Valley and 70.7008 million yuan from Guangzhou Xingke due to underutilization [2] Strategic Focus - The company is committed to high-end packaging substrate business, with semiconductor business revenue reaching 1.2848648 billion yuan, a year-on-year growth of 18.27%; the CSP packaging substrate business is expanding into storage and RF markets, benefiting from the recovery in the storage chip industry [3] - The FCBGA project is prepared for mass production, with ongoing customer certification and sample order deliveries, leading to improved yield rates [3] Investment Outlook - Revenue projections for 2025 to 2027 are 7.307 billion yuan, 9.206 billion yuan, and 11.784 billion yuan, with net profits of 0.154 billion yuan, 0.415 billion yuan, and 0.857 billion yuan respectively; the company is positioned as a key player in the domestic FCBGA substrate market amid a backdrop of domestic substitution [4] - The company is expected to reach a target price of 13.75 yuan based on a 56 times price-to-earnings ratio for 2026, maintaining a "Buy-A" investment rating [4]