Core views:
The company released the 2023Q3 report, and revenue for the first three quarters achieved year-on-year growth. The company achieved operating income of 5.642 billion yuan in the first three quarters of 2023, a year-on-year increase of 14.31%, net profit to mother of 2,031 billion yuan, a year-on-year decrease of 0.48%, and net profit after deducting net profit of 1.922 billion yuan, a year-on-year decrease of 1.69%. The 23Q3 quarter achieved operating income of 1,908 billion yuan, a year-on-year decrease of 6.08%, net profit to mother of 639 million yuan, a year-on-year decrease of 24.21%, and net profit after deducting 600 million yuan, a year-on-year decrease of 25.19%.
Actively explore potential markets and continue to lay out key areas. In terms of special integrated circuits, the company expanded its product category and launched a new industrial-grade product line. According to the company's 23 semi-annual report, FPGA products are leading in the industry. The newly developed special Nand Flash has been introduced to the market, and new special memories will soon be launched; in terms of smart security chips, new breakthroughs have been made in the fields of telecommunications, finance, identification, the Internet of Things; in terms of crystals, the company continues to increase the proportion of high-end differential oscillators to meet the needs of fields such as optical modules and computing power servers; in terms of semiconductor power devices, the company lays out automotive grade power Device products, and is also deeply involved in the optical storage and industrial control markets.
Master a number of core technologies and promote the development of new products with high quality. In terms of special integrated circuits, the company has mastered architecture design, instruction set design and implementation technology for high-reliability microprocessors; in terms of quartz crystal frequency devices, according to the company's 23 semi-annual report, the company has completed the construction of a Q-MEMS lithography test line and successfully launched high-end products such as high-base frequency crystals and miniaturized crystals for 5G terminals, OCXO 1409 thermostatic oscillators for 5G communication, and miniaturized VCXO oscillators; in terms of semiconductor power devices, the company's superjunction MOSFET technology research and development capabilities are leading domestically.
Profit forecasting and investment advice. The company's EPS is expected to be 3.18, 4.19, and 5.34 yuan/share in 23-25 years. Taking into account the company's growth and profitability, the company was given a PE valuation of 40 times that of 2023, corresponding to a reasonable value of 127.22 yuan/share, maintaining a “buy” rating.
Risk warning. The growth of the special integrated circuit industry falls short of the expected risk; the upstream production capacity supply of the special integrated circuit industry chain falls short of the expected risk; the development progress of new projects falls short of the expected risk.