Group 1: Financial Performance - In Q1 2025, the company achieved revenue of 4.91 billion RMB, a year-on-year increase of 20.75% [1] - The net profit attributable to shareholders was 0.47 billion RMB, up 29.47% year-on-year [1] - The net profit excluding non-recurring gains and losses was 0.48 billion RMB, reflecting a growth of 44.64% [1] Group 2: PCB Business Development - The PCB business focuses on communication equipment, particularly in data centers and automotive electronics, with a slight recovery in wireless orders and continued growth in wired demand [2] - Orders in the data center sector continued to grow, driven by demand for AI accelerator cards and servers [2] - The automotive electronics sector is experiencing stable growth, particularly in new energy and ADAS directions [2] Group 3: Packaging Substrate Business - The company offers a wide range of packaging substrate products, including module packaging substrates and storage packaging substrates, primarily used in mobile smart terminals and servers [3] - Demand for packaging substrates improved in Q1 2025, mainly due to increased demand for storage products [3] Group 4: 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 [4] - The packaging substrate business has seen an increase in capacity utilization compared to Q4 2024 due to improved demand in the storage sector [4] Group 5: Impact of U.S. Sales and Tariff Policies - Direct sales to the U.S. accounted for a low proportion of total revenue, indicating limited impact from U.S. tariff policies [5] - The company is closely monitoring the evolving international trade environment and maintaining communication with industry stakeholders [5] Group 6: HDI Process Capability - The company possesses HDI process capabilities, applicable in communication, data centers, industrial control, medical, and automotive electronics sectors [6] Group 7: FC-BGA Packaging Substrate Development - The company has achieved batch production capability for FC-BGA packaging substrates with up to 20 layers, with ongoing development for products exceeding 20 layers [7] - The Guangzhou packaging substrate project is in the early stages of ramping up production, with some cost impacts on profits [7] Group 8: Expansion Plans - The PCB business is expanding with factories in Shenzhen, Wuxi, Nantong, and a project in Thailand, focusing on technology upgrades and capacity enhancement [8] - The Nantong Phase IV project is under construction to establish an HDI technology platform [8] Group 9: Thailand Factory Investment - The total investment for the Thailand factory is 1.274 billion RMB, aimed at enhancing overseas market reach and meeting international customer demands [9] Group 10: Raw Material Price Changes - Key raw materials have seen price increases in Q1 2025 due to commodity price fluctuations, impacting costs [10] - The company is actively monitoring raw material prices and maintaining communication with suppliers and customers [10]

Core Viewpoint - The company has successfully capitalized on the historic opportunities presented by AI computing power, resulting in rapid revenue and net profit growth, maintaining a "buy" rating. Financial Performance - In 2024, the company achieved a revenue of 10.731 billion yuan, a year-on-year increase of 35.31%, and a net profit attributable to shareholders of 1.154 billion yuan, a year-on-year increase of 71.96% [1] - The gross profit margin for 2024 was 22.72%, an increase of 2.01 percentage points year-on-year, while the net profit margin was 10.76%, an increase of 2.29 percentage points year-on-year [1] - In Q1 2025, the company reported a revenue of 4.312 billion yuan, a year-on-year increase of 80.31% and a quarter-on-quarter increase of 42.15%, with a net profit of 921 million yuan, a year-on-year increase of 339.22% and a quarter-on-quarter increase of 136.17% [1] - The gross profit margin for Q1 2025 was 33.37%, an increase of 13.89 percentage points year-on-year [1] - The company forecasts a net profit growth of no less than 30% quarter-on-quarter for Q2 2025 and over 360% year-on-year for the first half of 2025 [1] Technological Advancements - The company embraces AI and focuses on the opportunities brought by AI computing technology and data center upgrades, positioning itself at the forefront of global PCB manufacturing technology [2] - The company has made significant advancements in high-end products, including breakthroughs in ultra-high multilayer boards and high-level HDI technologies, and has successfully applied new materials like PTFE [2] Innovation and R&D - In 2024, the company invested 450 million yuan in R&D [3] - The company has achieved mass production of 6-stage 24-layer HDI products and is accelerating the development of the next generation 10-stage 30-layer HDI products [3] - In the automotive electronics sector, the company is a top PCB supplier for the world's largest electric vehicle customer, with sales increasing year-on-year [3] - The company supplies a wide range of PCB products for various automotive components, including safety parts and advanced driver-assistance systems [3] Future Projections - The company is expected to achieve revenues of 16.419 billion yuan, 21.837 billion yuan, and 27.297 billion yuan in 2025, 2026, and 2027 respectively, with net profits of 3.449 billion yuan, 4.712 billion yuan, and 5.974 billion yuan [3] - Corresponding P/E ratios for 2025-2027 are projected to be 19.1, 14.0, and 11.0 [3]