Event: the company released three quarterly results for 23 years: 1) 23Q1-3: revenue 15.081 billion yuan, yoy-1.96%, return net profit 368 million yuan, yoy-82.86%, deduction non-return net profit 130 million yuan, yoy-89.65%. 2) 23Q3: revenue 6.223 billion yuan, yoy+44.4%,qoq+37.6%, return net profit 215 million yuan, yoy+279.4%,qoq+570.7%, deducts non-return net profit 209 million yuan, yoy+206.2%,qoq+306.9%.
High-end new products contribute to growth, and profitability increases steadily. 23Q3 downstream demand gradually warmed up superimposed high-end new product shipments, the company's semiconductor design business revenue of 5.446 billion yuan, overall revenue to achieve double growth, inventory month-on-month decline of 2.28 billion yuan to 7.55 billion yuan. 23H2 since a number of high-end products have been mass production, the new XIAOMI 14 all the standard light and shadow hunter OV50H, the amount of light & HDR advantage is obvious, the company's high-end flagship main photography strength gradually appears. With the optimization of the company's product structure and the superimposed contribution of low-cost wafers, the company's gross profit margin is expected to increase steadily. 23Q3 gross profit margin is 21.8% qoqhammer 4.5pct yoymure 6.7pct.
Vehicle share-technology continues to lead, benefiting from intelligent re-perception trend. The company's automobile CIS continues to grow and its market share increases rapidly. According to the monthly shipping data of on-board CIS calculated by Chaodian think-tank, Weir's share surpassed on Senmei many times in 23 years. OX08D10, the new 8MP product launched by the company in September, uses LOFIC function and has the advantages of low illumination, LFM, small size, low power consumption and so on. 24H2 is expected to be mass produced. The company's car CIS share-technology continues to lead, and the BEV+Transformer re-perception trend under the camera growth certainty, the company is expected to fully benefit.
Vehicle business platform layout, a number of new products have been mass-produced. With the gradual improvement of the layout of the company's on-board platform, 23H1 acquired core force to complete the CAN/LIN product line and launched a new vehicle PMIC product, ORX1210,LCOS 23H2, which will gradually contribute to revenue. In addition, Serdes, MCU, discrete devices and so on will also contribute to the increment one after another.
Investment advice: taking into account the continuing weak demand in the downstream of 23H1 and the impact of destocking on profitability, we downgrade our previous profit forecast and expect the company's 2023-25 net return to be 11.326 billion yuan (corresponding to the previous value of 21.634.5 pound), and to maintain a "buy" rating corresponding to the 108-37-28 times of PE valuation.
Risk reminder event: the recovery of mobile terminal demand is not as expected, the introduction of new products is not as expected, the sales of new energy vehicles are not as expected, and the information used in the research and report is not updated in a timely manner.