Key points of investment

Significant progress has been made in the notebook sector

In the notebook field, the company can provide complete PC power solutions, including DC-DC, power switches, CPU power supplies, etc., and is a qualified supplier to many of the world's leading notebook foundries, and has entered the supply chain system of well-known terminal brands. On November 15, Jewart Microelectronics held an IMVP9.1 Vcore power solution conference at Intel's Greater Bay Area Science and Technology Innovation Center, which can provide overall Vcore solutions for Intel's 12th and 13th generation Core processors. The company's IMVP9.1 power solution has been officially certified by Intel and entered the PCL list, and is expected to contribute to the company's performance in the future.

Revenue recovered month-on-month, and the consumer sector took the lead in picking up

Judging from the quarterly results, the company's downstream consumer sector has shown signs of recovery. The company's revenue for the third quarter was 355 million yuan, up 4.98% year on year and 2.01% month on month. Consumer electronics took the lead in recovering in the short term and had a certain impact on the company's overall gross margin. The company's gross profit margin in the third quarter was 23.45%, a year-on-year decrease of 14.20%, and a year-on-month decrease of 7.14%. However, in the long run, the company is expected to benefit from downstream recovery and ushered in new product release opportunities, thereby improving performance.

With the increase in costs due to the expansion of business scale and personnel growth, as well as the implementation of equity incentives in 2023, etc., the company's operating performance was affected in the short term. Revenue for the first three quarters was 1.05 billion yuan, and net profit to mother was -364 million yuan, down 433.58% year on year. In the long run, it is conducive to promoting new products and other businesses, and is expected to drive the company's growth in the future.

Rich layout of vehicle specification products

The company's automotive electronics-related products include DC-DC, LDO, BMS, high and low side switches, headlight drivers, etc., which are mainly used in scenarios such as autonomous driving, smart cockpit, body domain control, vehicle charging, and headlights. The company has a rich product layout and continuously enriches product lines and product models. At present, a complete 5-100V DC-DC product matrix that meets AEC Q100 has been launched, which better meets the DC-DC needs of new energy vehicles. In the future, the supply chain system of well-known car manufacturers or tier 1 suppliers will be introduced one after another, which is expected to increase the company's performance.

Investment advice

We expect the company to achieve revenue of 1,418/18.84/2,477 billion yuan in 2023-2025, and realized net profit of -3.77/ -1.25/213 million yuan respectively. The current stock price corresponding to 2023-2025 PE is -/-/ 56 times, respectively, giving it an “increase in holdings” rating.

Risk warning

The volume of new products fell short of expectations; market competition intensified; market demand fell short of expectations.