2023Q4's revenue reached a record high, with smooth expansion of new products, maintaining that the “Buy” rating company achieved revenue of 5,040 billion yuan, +18.93% year over year; net profit to mother of 641 million yuan, +47.98% year over year; net profit of 592 million yuan, +60.88% year over year; gross profit margin of 35.35%, year over year.
2023Q4 achieved revenue of 1,364 billion yuan in a single quarter, +29.09% YoY, +1.50% month-on-month; net profit of 163 million yuan, +541.12% YoY, -26.39% month-on-month; after deducting non-net profit of 145 million yuan, +1460.80% YoY, -32.18% month-on-month; gross profit margin 36.96%, +6.61 pcts YoY, +0.69pcts month-on-month. Considering factors such as downstream recovery falling short of expectations, we lowered our 2024-2025 and added 2026 performance expectations. We expect net profit to be 947/11.88/1,404 billion yuan (previous value was 1,062/1.75 billion yuan), corresponding EPS was 1.17/1.47/1.74 yuan (previous value was 1.32/1.71 yuan), and the current stock price corresponding to PE is 23.2/18.5/15.7 times. The company is a leading passive component company, which is progressing smoothly in the emerging field. Maintain a “buy” rating.
The electronics industry is gradually recovering, and the company's profitability is rising steadily in 2024. By business, signal processing achieved revenue of 2,061 billion yuan, +26% year over year, accounting for 41%; power management achieved revenue of 1,865 billion yuan, +11%, accounting for 37%; automotive electronics or energy storage realized revenue of 681 million yuan, +24%, accounting for 14%; ceramics, PCB and others achieved revenue of 433 million yuan, +18%, or 9%. The company's profitability continued to improve quarterly throughout the year, mainly due to the smooth development of the precision electronic components business, increased orders, increased capacity utilization, continued increase in marginal profit, and improved labor efficiency. In January 2024, the company's sales reached a record high monthly sales and achieved a good start. Market forecasts indicate that the electronics industry will recover in 2024H2, and the company is expected to achieve another good result.
Emerging fields are progressing smoothly, and room for long-term growth has been opened up
The company is actively developing automotive electronics, photovoltaic energy storage, data centers, precision ceramics and module business. It is progressing smoothly, the product line is gradually being enriched, and room for long-term growth has been opened up. Looking at the breakdown, automotive electronics: the company's cooperation with strategic customers has deepened, and high-end customer projects continue to advance smoothly, and its products cover fields such as battery management and intelligent driving systems; photovoltaic energy storage: the company has received recognition from leading customers and successfully developed new high-power components; module modules: PA modules have been recognized by important overseas customers, and the product share continues to increase.
Risk warning: Downstream demand recovery falls short of expectations; production capacity release falls short of expectations; new product development falls short of expectations; customer introduction falls short of expectations.