Conclusions and recommendations:
The company released a quick performance report. In 2023, the company's revenue increased by 20% and net profit increased by 9%. Among them, following a significant improvement in 3Q23's performance, 4Q23's revenue increased by 97%, net profit increased by 313%, and net profit increased by 309% after deduction. This reflects the restoration of the downstream industry boom and the continued increase in sales of the company's RF module products.
With the recovery of mobile phone sales in China, the company, as a leader in the domestic RF chip field, showed flexible performance during the boom phase of the industry. In addition, Zhuoxin put into production further enhanced the company's competitiveness in the industry and promoted the leap of the company's product structure from a single discrete device to an RF module. Currently, the company's stock price is 33 times and 26 times the 24 and 25-year PE valuations, respectively, maintaining a “buy” rating.
The 2023 results are at the upper end of the forecast range, and the 4Q23 results continued to pick up: the company released a quick performance report. In 2023, YOY achieved revenue of 4.38 billion yuan, YOY increased 19.1%, realized net profit of 1.16 billion yuan, YOY increased 9%, net profit after deducting 1.14 billion yuan, YOY increased 7%, and EPS 2.18 yuan. The company's performance is close to the upper limit of the performance forecast. Among them, in the fourth quarter, the company achieved revenue of 1.3 billion yuan, YOY increased 97%, and the growth rate was further accelerated by% in 3Q23, achieving net profit of 350 million yuan. YOY increased 313%%, net profit after deducting 330 million yuan, and YOY increased 309%. Thanks to the rising boom in the downstream industry, the company's performance increased rapidly year-on-year for two consecutive months.
Profit forecast: Looking forward to the future, the RF market has huge potential for domestic replacement. The company is one of the few domestic manufacturers of high-end filters and RF devices, and is expected to replace major overseas manufacturers. At the same time, the company also has integrated capabilities from design to manufacturing. With the cost control and improvement of product capabilities brought about by the mass production line of Xinzuo, the company's core competitiveness will continue to increase. Along with the rise in the consumer electronics boom, the company's performance growth rate is expected to accelerate. The company's net profit for 2024-25 is expected to be 1.66 billion yuan and 2.11 billion yuan respectively, YOY will increase by 42% and 28%, and EPS will be 3.1 yuan and 3.96 yuan respectively. Currently, the stock price corresponding to 2024 and 25 PE is 33 times and 26 times, respectively. We give the company a buying rating.
Risk warning: Demand in the mobile phone industry falls short of expectations.