Group 1: PCB Business Overview - The company's PCB business focuses on communication equipment, particularly in data centers and automotive electronics, with a slight recovery in wireless communication orders compared to Q4 2024 [1] - The demand for wired communication orders remains strong, with a higher proportion than wireless communication [1] - The data center sector continues to see growth in orders, driven by the demand for AI acceleration cards and servers [1] Group 2: Packaging Substrate Business - The packaging substrate products cover a wide range, including module packaging substrates and storage packaging substrates, primarily used in mobile smart terminals and servers [2] - There has been a noticeable improvement in demand for packaging substrates in Q1 2025 compared to Q4 2024, mainly due to increased demand for storage products [2] Group 3: Production Capacity and Utilization - The overall production capacity utilization remains high, particularly in the PCB business due to sustained demand in computing power and automotive electronics [3] - The packaging substrate business has also seen an increase in capacity utilization due to improved demand in the storage sector compared to Q4 2024 [3] Group 4: FC-BGA Packaging Substrate Technology - The company has achieved batch production capability for FC-BGA packaging substrates with 20 layers or fewer, while R&D for products with more than 20 layers is progressing on schedule [4] - The Guangzhou packaging substrate project is in the early stages of ramping up production, with a reduction in losses in Q1 2025 compared to previous quarters [4] Group 5: Expansion Plans - The company has PCB factories in Shenzhen, Wuxi, Nantong, and a factory under construction in Thailand, focusing on technological upgrades to enhance capacity [5] - The Nantong Phase IV project is underway to establish an HDI technology platform and capacity [5] Group 6: Thailand Factory Investment - The total investment for the Thailand factory is 1.274 billion RMB, with construction progressing on schedule [6] - The factory will have capabilities for high-layer and HDI PCB technologies, aiding in the expansion of overseas markets [6] Group 7: Raw Material Price Changes - Key raw materials include copper-clad laminates and gold salts, with prices increasing year-on-year and compared to Q4 2024 due to commodity price fluctuations [7][8] - The company is monitoring international commodity prices and maintaining communication with suppliers and customers [8]

Group 1: Business Overview - The company focuses on PCB business applications primarily in communication equipment, with a significant emphasis on data centers and automotive electronics [1] - In Q1 2025, the wireless communication orders slightly rebounded compared to Q4 2024, while the demand for wired communication remains strong [1] - The data center orders continued to grow, driven by the demand for AI accelerator cards and servers [1] Group 2: Packaging Substrate Business - The company offers a wide range of packaging substrate products, including module packaging substrates and storage packaging substrates, mainly used in mobile smart terminals and servers [2] - In Q1 2025, the demand for packaging substrates improved compared to Q4 2024, primarily due to increased demand for storage products [2] Group 3: Production Capacity and Utilization - The overall production capacity utilization remains high, with PCB business benefiting from sustained demand in computing and automotive electronics [3] - The packaging substrate business has seen an increase in capacity utilization due to improved demand in the storage sector compared to Q4 2024 [3] Group 4: U.S. Sales and Tariff Impact - Direct sales to the U.S. accounted for a low percentage of total revenue, indicating minimal impact from U.S. tariff policies [4] - The company is closely monitoring the evolving international trade environment and maintaining communication with industry stakeholders [4] Group 5: FC-BGA Packaging Substrate Development - The company has achieved mass production capability for FC-BGA packaging substrates with up to 20 layers, while R&D for products with more than 20 layers is progressing on schedule [5] - The Guangzhou packaging substrate project is in the early stages of ramping up production, with a reduction in losses observed in Q1 2025 compared to previous quarters [5] Group 6: Expansion Plans - The company has factories in Shenzhen, Wuxi, Nantong, and a project under construction in Thailand, focusing on upgrading existing facilities to enhance capacity [6] - The total investment in the Thailand factory is approximately 1.274 billion RMB, aimed at expanding overseas market reach and improving global supply capabilities [7][8] Group 7: Raw Material Price Trends - In Q1 2025, prices for certain raw materials, such as gold salt, increased compared to both Q1 2024 and Q4 2024, influenced by commodity price fluctuations [8] - The company is actively monitoring raw material price changes and maintaining communication with suppliers and customers [8] Group 8: AI and PCB Business - The demand for high-performance PCBs is increasing due to the rapid evolution of AI technology and the need for high-speed networks [8] - The company's PCB business has benefited from trends in high-speed communication networks and data center applications since 2024 [8]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company reported a revenue of 17.907 billion yuan in 2024, representing a year-on-year increase of 32.39%. The net profit attributable to shareholders was 1.878 billion yuan, up 34.29% year-on-year. The gross margin and net margin were 24.83% and 10.49%, respectively, with increases of 1.40 percentage points and 0.16 percentage points year-on-year [2][5]. - In Q4 2024, the company achieved a revenue of 4.858 billion yuan, a year-on-year increase of 19.51% and a quarter-on-quarter increase of 2.74%. The net profit attributable to shareholders was 390 million yuan, down 20.50% year-on-year and 22.22% quarter-on-quarter [2][5]. - The company's PCB business showed robust growth, with revenue of 10.494 billion yuan, up 29.99% year-on-year, and a gross margin of 31.62%, an increase of 5.07 percentage points year-on-year. However, the packaging substrate business saw a decline in profitability [10]. Summary by Sections Financial Performance - In 2024, the company achieved total revenue of 17.907 billion yuan and a net profit of 1.878 billion yuan. The gross profit margin was 24.83%, and the net profit margin was 10.49% [2][5]. - For Q4 2024, the company reported revenue of 4.858 billion yuan and a net profit of 390 million yuan, with gross and net margins of 21.95% and 8.04%, respectively [2][5]. Business Segments - The PCB business generated revenue of 10.494 billion yuan, reflecting a year-on-year growth of 29.99% with a gross margin of 31.62%. The packaging substrate business had revenue of 3.171 billion yuan, up 37.49%, but with a gross margin of 18.15%, down 5.72 percentage points [10]. - The electronic assembly business achieved revenue of 2.823 billion yuan, a year-on-year increase of 33.20%, with a gross margin of 14.40% [10]. Future Outlook - The company is expected to achieve net profits of 2.531 billion yuan, 3.033 billion yuan, and 3.549 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 28.11, 23.46, and 20.05 [10].