WUS(SZ:002463)2025-09-18 13:09Summary of WUS Printed Circuit Conference Call Company Overview - Company: WUS Printed Circuit (Ticker: 002463.SZ) - Industry: Technology, specifically in the Printed Circuit Board (PCB) sector - Key Customers: Cisco, Oracle, Amazon, Huawei [12][12] Key Points and Arguments Earnings Forecast and Target Price - Earnings Increase: Earnings forecasts for 2025, 2026, and 2027 have been raised by 5.6%, 11%, and 8% respectively due to stronger growth outlook on AI PCBs [1][15] - Target Price: Target price raised to CNY 86.8, implying approximately 21% upside from the current price of CNY 71.90 [1][5] - Valuation: Target price based on a P/E multiple of 38x 2026F EPS of CNY 2.28, close to the high-end of its historical range [1][25] Market Dynamics - AI PCB Demand: Anticipated substantial upgrades in AI ASIC PCB specifications starting from 2H26, driven by new-gen ASICs catching up with competitors like nVidia [2][2] - New Content Additions: CSPs' ASICs will enhance scale-up connectivity, requiring more scale-up switches and new PCB content [2][2] Production and Operational Updates - Thailand Plant: The Thailand plant recorded losses of approximately CNY 96 million in 1H25 due to limited scale ramp-up. However, it has been qualified by two AI and switch customers, with expectations to qualify four more in 2H25 [3][3] - Product Focus: The plant aims to manufacture mid-to-high-end products and is expected to reach reasonable economies of scale by the end of 2025 [3][3] Financial Performance - Revenue Growth: Projected revenues for FY25, FY26, and FY27 are CNY 17,746 million, CNY 21,618 million, and CNY 25,307 million respectively, reflecting significant growth [4][15] - Net Profit: Normalized net profit forecasts for FY25, FY26, and FY27 are CNY 3,345 million, CNY 4,390 million, and CNY 5,194 million respectively [4][15] - Margins: Gross margin expected to stabilize around 34.6% in FY26 and FY27 [15][15] Risks and Challenges - Market Risks: Potential risks include slower-than-expected PCB growth from 5G basestation PCBs, weaker datacenter demand, and slower upgrades from major players like Intel and AMD [13][26] ESG Commitment - Sustainability Efforts: WUS is committed to recycling water, achieving a reuse rate of over 50% [14][14] Additional Important Information - Stock Performance: The stock has shown strong performance with a 125.7% increase over the past 12 months [8][8] - Market Capitalization: Approximately USD 19.43 billion [5][5] This summary encapsulates the critical insights from the conference call, highlighting the company's strategic direction, financial outlook, and market positioning within the technology sector.