DSBJ(SZ:002384)2025-05-16 01:55Summary of Dongshan Precision's Q1 2025 Earnings Call Company Overview - Dongshan Precision reported business growth in Q1 2025, primarily driven by the increase in revenue from the PCB (Printed Circuit Board) segment, with the new energy business achieving over 100% growth in a single quarter. Non-PCB businesses, including touch display and LED manufacturing, turned losses into profits year-on-year. [2][4] - The gross margin improved year-on-year due to stable PCB performance and the recovery of other business segments. The reduction in operating expense ratio was attributed to controlled sales and management expenses, although R&D investment increased. [2][4] Key Business Segments New Energy Business - The new energy business generated 2.63 billion, a year-on-year increase of 44%. Successful product introduction from major clients and smooth ramp-up of new production capacity contributed to this growth. [3] - The company aims to enhance the value and market share of its products in the new energy sector, targeting the establishment of a 100 billion intelligent manufacturing platform. [3] LED and Touch Display Business - The LED and touch display segments, which had previously reported losses, showed signs of recovery with reduced losses in Q1 2025. The LED segment is expected to continue reducing losses throughout the year, potentially turning profitable in certain quarters. [4][6] - The touch display segment is anticipated to achieve revenue growth as demand from major clients gradually increases. [4] Market Dynamics - The company noted that the LED industry has faced severe competition due to oversupply and weak demand, leading to a challenging environment. However, structural adjustments in product and client mix have started to yield positive results. [4][6] - The company does not foresee significant pricing pressure in the soft board segment, maintaining stable gross margins despite ongoing price reductions. [5] Future Outlook - The second quarter is traditionally a slow season for consumer electronics, but the company expects continued improvement in precision components and LED segments. The demand for PCBs remains uncertain due to trade conflicts and structural adjustments. [6] - For the full year, the company is optimistic about ASP (Average Selling Price) increases and the introduction of new products from major clients. [6] Production and Capacity - The company is focusing on high-end multilayer PCB technology for next-generation computing needs and is investing in automation and AI technologies in its manufacturing processes. [2] - The Thai factory is positioned to support module production, with expectations of achieving a 1:3 input-output ratio once soft board production reaches full capacity. [17] Strategic Partnerships and Innovations - The company is collaborating with DingTalk to build a digital platform that optimizes production planning and supply chain management through AI technology. [2] - The company is also involved in the development of AI glasses and has positioned itself as a key supplier for lightweight and high-performance soft boards. [18] Conclusion - Dongshan Precision is navigating a complex market landscape with strategic adjustments in product offerings and client relationships. The company is optimistic about future growth driven by new energy and advanced technology applications, while also managing challenges in traditional segments like LED and touch displays. [2][3][4][6]