Affected by terminal demand, the company's 23-year performance was under pressure. Nanochip released its 23-year performance report. The company achieved revenue of 1,311 billion yuan, yoy -21.51%. Affected by the overall macroeconomic and semiconductor cycle decline, the company's operating income declined year-on-year. Net profit returned to mother in '23 was -236 million yuan, yoy -194.21%, net profit after deducting non-return to mother was -322 million yuan, yoy -290.19%. The company's equity incentive expenses for 23 years were $221 million, and net profit returned to mother and -101 million yuan after deduction was -0.15 million yuan and -101 million yuan respectively. The company attaches importance to investment in R&D personnel. The three fees continued to rise in '23, the company's net profit declined in the short term, and the company's competitiveness continued to improve in the long run.
23Q4 The company's revenue improved month-on-month, and the automotive sector is progressing rapidly. 23Q4 achieved revenue of 311 million yuan, yoy -21.31%, qoq +11.94%, and realized net profit of 15 million yuan, yoy +72.50%, turning a month-on-month loss into a profit. Net profit after deducting non-return to mother was -08 billion yuan, and the average loss narrowed compared to the same period last month. The company's automotive electronics demand has gone through a process from no core to no core to steady growth. Judging from 23Q3, automotive electronics demand has clearly picked up, and quarterly revenue has increased significantly month-on-month. Various products, such as headlight drivers, motor drives, power supply LDO, etc. have been shipped or introduced on a large scale by leading customers, and progress is progressing rapidly.
The company's new product launches go hand in hand, and market expansion continues. According to the investor relations activity table disclosed by the company, in terms of magnetic sensors, the company's magneto-current sensors are expected to expand from the photovoltaic market to automotive three-electric system applications in 2024. In terms of isolation products, isolated drives with protective functions have been mass-produced in the main drive applications of some NEV customers. In terms of power management, products such as headlight drives and motor drives are progressing smoothly at leading automotive customers.
Profit forecasting and investment advice. The company is expected to achieve revenue of 13.11 billion yuan and 2,007 billion yuan respectively in 23 and 24, and EPS of -1.66 and 0.36 yuan/share, respectively. Considering the company's leading position in the local analog IC market, referring to comparable companies, the company was given a PS valuation of 10 times in 24 years, corresponding to a reasonable value of 141.34 yuan/share, maintaining a “buy” rating.
Risk warning. Downstream demand fell short of expectations, new product development fell short of expectations, and competition for isolated ICs intensified.