Incident: The company released the 2022 annual report and the first quarter report of 2023. It achieved operating income of 502 million yuan for the full year of 22, -1.19% year on year, and achieved net profit of 174 million yuan to the mother, +5.23% year on year. Q1 of '23 achieved operating income of 76 million yuan in a single quarter, -53.01% year on year, -24.41% month on month, and net profit of the mother was 10 million yuan, -84.49% year on year and -20.00% month on month.
Affected by downstream market demand and fluctuations in the semiconductor industry's boom cycle in 2022, the analog chip industry faced certain operating pressure. The company actively expanded the market, and the business situation was good throughout the year. The company adjusted its product structure in '22, accelerated its overseas deployment, and increased sales of overseas laptop and mobile phone products, hedging the impact of weak demand in the domestic consumer market to a certain extent. Annual revenue was basically the same as in '21 (-1.19% year on year). Among them, power management chip revenue was 273 million yuan, +6.0% year on year, and signal chain chip revenue was 229 million yuan, -8.6% year on year.
Benefiting from the optimization of the product structure and the fact that the company's products have certain bargaining power in downstream market segments, the company maintained a high gross margin level in '22. The comprehensive gross margin was 55.02%, +1.38pct over the previous year. Among them, the gross margin of the power management chip was 54.27%, -2.57 pct year on year, and the gross margin of signal chain chips was 55.91%, +5.57pct over the previous year. Looking at the 22Q4 quarter alone, the company's revenue, net profit, and gross margin declined month-on-month. Mainly due to weak market demand, the company adjusted prices for some product lines.
Demand in the downstream market is still low in 23Q1. Looking ahead to 2023, as demand recovers and the company continues to expand new products, new fields, and new customers, the company's performance is expected to gradually improve. 23Q1 Under the influence of weak overall market demand and holidays, the 23Q1 company's revenue was 76 million yuan, -24.41% month-on-month, and the net profit of the mother was 10 million yuan, -20% month-on-month, and the consolidated gross margin was 48.19%, which is basically the same as 22Q4 (-0.19pct). The company continues to promote product expansion and technology iteration. The performance of the automotive electronics market in 2023 is worth looking forward to. The consumer market is also expected to see volume as new products are introduced and customers expand, and fields such as servers and industrial electronics will also actively expand.
Profit forecast: The company's revenue for 23-25 is 815, 1,103 million yuan, and 1,427 million yuan respectively, and net profit of the mother is 245, 333, and 427 million yuan. Considering the recovery in demand and the company's active market expansion, we maintain the “buy” rating.
Risk warning: downstream recovery falls short of expectations, industry competition intensifies, customer expansion falls short of expectations