WUS(SZ:002463)2026-03-01 17:23Summary of WUS Printed Circuit (002463.SZ) Conference Call Company Overview - Company Name: WUS Printed Circuit - Established: 1992 in Kunshan, listed in 2010 - Major Products: Multi-layer boards (MLB) and high-density interconnectors (HDI) - Applications: Primarily in communication and automotive sectors [13][14] Key Financial Insights - Net Profit Estimates: Revised for 2026 to Rmb5.8 billion and for 2027 to Rmb9.9 billion, reflecting an increase of 8% and 23% respectively due to higher-than-expected capital expenditure to revenue ratio [4][8] - Revenue Projections: - 2026E revenue estimated at Rmb26 billion, supported by technology upgrades in Kunshan and Huangshi plants, adding approximately Rmb8 billion capacity by end-2026 [3] - 2027E revenue projected at Rmb39 billion, with new capacity from a Rmb4.3 billion investment starting trial production in Q3 2026 [3][4] - Earnings Summary: - 2023A: Net Profit Rmb1,513 million, EPS Rmb0.794 - 2024A: Net Profit Rmb2,587 million, EPS Rmb1.351 - 2025E: Net Profit Rmb3,822 million, EPS Rmb1.987 - 2026E: Net Profit Rmb5,766 million, EPS Rmb2.996 - 2027E: Net Profit Rmb9,901 million, EPS Rmb5.145 [5] Investment Valuation - Target Price: Increased to Rmb119.0 from Rmb98.0, based on a 23x 2027 P/E, aligning with its 3-year average forward P/E [4][6] - Expected Returns: Anticipated share price return of approximately 39.4% and total return of 40.7% including dividend yield [6] Market Position and Strategy - Primary Supplier: WUS is expected to be the main supplier for the LPU rack, with a PCB content value of approximately US$6,000 per mainboard [2] - Growth Drivers: - Demand for GenAI-related PCBs is expected to drive robust growth from 2025 to 2027, with potential improvements in average selling price (ASP) and gross margin due to favorable product mix [15] - Strong execution and delivery capabilities are highlighted as key factors for sustaining robust gross margins [15] Risks and Challenges - Downside Risks: - Less-than-expected share allocation in GenAI-related PCBs - Pricing and competition pressures in the automotive supply chain - Potential reductions in CSP capital expenditure and weak economic conditions affecting demand - Increasing material costs and geopolitical risks between the US and China [16] Additional Insights - Market Cap: Approximately Rmb164.3 billion (US$23.9 billion) [6] - Catalysts: Anticipated launch of LPU at GTC is seen as a short-term catalyst for growth [1][2] This summary encapsulates the critical financial metrics, strategic positioning, and potential risks associated with WUS Printed Circuit, providing a comprehensive overview for investment considerations.