Revenue in 2022 fell 1% year over year, and the first quarter was down 53% year over year. The company's revenue in 2022 was 502 million yuan (YoY -1.19%), net profit of 174 million yuan (YoY +5.23%), after deducting net profit of 142 million yuan (YoY -9.35%). 1Q23's revenue was 75.57 million yuan (YoY -53.01%, QoQ -24.41%), net profit of 9.99 million yuan (YoY -84.49%, QoQ -20.00%), net profit of non-return to the mother was 9.95 million yuan. In terms of profitability, gross margin increased 1.4pct to 55.02% in 2022, R&D expenses increased 55.10% to 70.46 million yuan, R&D expenses increased 5.1pct to 14.05%, management fees increased 2.3pct to 8.01%, and sales rates increased 0.7pct to 4.19%. The gross margin for 1Q23 was 48.19% (YOY-9.3pct, QoQ -0.2pct), and the rate for the period increased significantly from month to month.
New power management and signal chain products continue to be introduced, and the transmitter has officially entered Qualcomm's flagship platform. By product, in terms of power management chips, revenue of 273 million yuan (YoY +5.99%) was achieved in 2022, accounting for 54%, with a gross profit margin of 54.27% (-2.6pct). The company's featured power products continued to expand in the direction of low power consumption and high efficiency. For example, the efficiency of high-current DCDC products with high power density was as high as 97%. In terms of signal chain chips, revenue of 239 million yuan (YoY -8.58%) was achieved in 2022, accounting for 46%, with a gross profit margin of 55.91% (+5.6pct). The company continued to launch a series of excellent products in the direction of high speed and high accuracy. Low-power operational amplifier products successfully passed Qualcomm's certification, officially entered Qualcomm's flagship platform SM8475, and were adopted by Samsung's flagship phone Z Fold4/Z Flip4 series, which is also extended to Qualcomm's mid-range flagship models, which are expected to continue to be sold in 2023.
Entered the automotive electronics industry and developed a variety of server products. The company continues to increase investment in research and development of automotive electronics-related products. The signal chain products include analog switches and operational amplifiers. Among them, analog switches expand to high-speed switches, and operational amplifiers expand to high-voltage high-precision and high-precision ADC products; power products include motor drives, high-voltage low-power LDO, ultra-high PSRR LDO, etc.; the lighting field mainly lays out headlights, taillights, and penetrating taillights, etc., and will follow automotive socket LED lights, high-voltage multi-topology LED smart lighting drivers for automobile taillights, etc. Product orientation layout. On the server side, a series of products such as PCIe interface, USB3.1 10Gbps repeater chips for A and C ports, multi-channel buffer switches, and temperature sensors have been developed.
Investment advice: The company's new products were successfully launched, and given a “buy” rating, we expect the company's net profit to be 191/2.58/335 billion yuan in 2023-25, a year-on-year growth rate of +9.8/+35.3/ +29.7%; EPS is 0.76/1.02/1.33 yuan, and PE corresponding to the stock price on April 21, 23 is 55/41/31x, respectively. The company successfully launched its new products and gave it a “buy” rating.
Risk warning: New product development falls short of expectations; customer verification falls short of expectations; demand falls short of expectations.