23Q4 revenue for the single quarter was +11.94% month-on-month, and net profit to mother turned a month-on-month loss into a profit, in line with expectations.
On February 24, 2024, the company's performance report announced the 2023 revenue of 1,311 billion yuan, down 21.51% year on year, net profit to mother - 236 million yuan, from profit to loss, net profit minus 322 million yuan, year-on-year to profit to loss. The year-on-year decline in revenue was due to weak demand in the terminal market. The year-on-year decline in net profit was mainly affected by falling gross margin, increased sales/management/R&D expenses, and share payment expenses. Excluding the impact of the share payment fee of 221 million yuan, net profit attributable to mother is -15 million yuan, and net profit not attributable to mother is deducted - 101 million yuan.
The estimated revenue for the 23Q4 single quarter was 310 million yuan, up 11.94% month-on-month, and net profit to mother was 0.15 million yuan, turning a month-on-month loss into a profit. After deducting net profit of non-return to mother of -08 million yuan, the month-on-month loss narrowed by 128 million yuan.
Major downstream markets, with the exception of storage, showed a recovery. Demand in the automotive market grew steadily, and consumer electronics gradually recovered.
In 23Q3, the pan-energy sector had revenue of 155 million yuan, accounting for 55.9% of revenue; the automotive sector was 89 million yuan, accounting for 32.1% of revenue; and the consumer electronics sector was 35 million yuan, accounting for 12.6% of revenue.
(1) Pan-energy sector: Downstream customers in the optical storage market are still in a state of inventory removal, while the traditional industrial market observed clear signs of steady improvement in 23Q3. (2) Automotive sector: Demand for automotive electronics is still growing steadily, and the automotive market has clearly picked up in 23Q3. (3) Consumer electronics sector: 23H1 The consumer electronics market showed signs of recovery, end customer inventories returned to a reasonable level, and there was a gradual recovery and growth trend.
Product development continues to advance in the three major businesses, focusing on the release of new products to contribute to incremental revenue.
In the 23Q3 single quarter, signal chain revenue was 141 million yuan, accounting for 50.9%; power management was 94 million yuan, accounting for 33.9% of revenue; and sensors were 42 million yuan, accounting for 15.1% of revenue. The company's three major products have been successfully developed and will contribute incremental revenue in 2024.
(1) Signal chain aspect: Isolated drives for functional safety main drives are expected to be mass-produced in 2024. Isolated drives used in photovoltaic inverters and industrial motor drives are gradually replacing optocoupler drives. (2) In terms of power management:
The new-generation isolated half-bridge drive and multi-channel half-bridge motor drive 23Q3 have been mass-produced and gradually increased; power supply LDO has been introduced by some customers and is expected to gradually contribute to incremental revenue in 24 years; products related to high-side switches will be mass-produced in 24 years. (3) Sensor side: Magnetic current sensors are expected to gradually expand to automotive three-electric systems in 24, and magnetic angle and magnetic switch sensors will also gradually contribute to revenue.
Leading domestic automotive-grade analog chips, improving the “endogenous+epitaxial” product matrix and maintaining the “gain” rating.
The company is a domestic analog chip leader, with high R&D investment in three major businesses. It plans to acquire Quantum Micro to expand its signal chain and audio SoC product matrix. The estimated net profit from 2023 to 2025 is -2.36/0.38/229 million yuan, corresponding to PE of -77.0/472.3/79.3 times in 23/24/25, maintaining a “gain” rating.
Risk warning: international trade friction risk; core competitiveness risk; business risk; financial risk, etc.