Event: The company released its 2023 annual report on March 4. In 2023, the company achieved operating income of 317 million yuan, YoY +39.77%; net profit to mother of 165 million yuan, YoY +41.84%; net profit after deducting non-return to mother of 143 million yuan, YoY +33.50%; gross profit margin of 83.01%, a year-on-year decrease of 2.91 pct.
The company's performance grew rapidly throughout 2023.
Comment: The product has been verified and continuously introduced to downstream customers, and the company continues to develop new product fields for industrial gyroscopes, pressure sensors and autonomous driving. In 2023, the company's four businesses of MEMS gyroscopes, inertial measurement units, technical services, and MEMS accelerometers achieved revenue of 2.60/0.23/0.18/0.17 billion yuan, YoY +42.37%/128.59%/-12.91%/20.63%, and gross margins of 85.55%/65.59%/86.98%/62.53%, respectively, with a decrease of 0.95pct/11.09pct/3.67pct/16.18pct, respectively. On the cost side, the company spent 80 million yuan on R&D in 2023, YoY +43.85%, mainly due to increased investment in industrial-grade gyroscopes and autonomous driving MEMS inertial navigation systems.
The core manufacturer of MEMS inertial devices is rapidly expanding its gyroscope and accelerometer business. The company has long been committed to the development and production of high-performance MEMS inertial devices, and the product performance indicators have reached the navigation level and the leading international level. Compared with lasers and fiber-optic gyroscopes, MEMS gyroscopes have advantages such as small size and low cost. They have broad application prospects in the military and civilian markets, and the penetration rate in the field of high-performance inertia is expected to increase rapidly. In 2023, the company increased R&D investment in the field of MEMS gyroscopes and accelerometers. The 4th generation of high-performance Z-axis MEMS gyroscopes has entered the verification stage; the high-performance three-axis MEMS accelerometer has entered the verification stage; and the high-performance full-angle gyroscope has entered the development stage.
Expanding the automotive-grade autonomous driving inertial sensor IMU and pressure sensor business is expected to create a new growth curve. In the automotive sector, the company's R&D investment during the reporting period included MEMS inertial navigation systems, functional safety 6-axis IMUs, and vehicle-grade high-performance MEMSIMU suitable for L3+ autonomous driving. In the field of pressure sensors, the company's research projects include large range absolute pressure sensors and resonant pressure sensors. In the field of optical communication, the company developed an optical attenuator micromirror during the reporting period, which is currently in the development stage. The company is expected to continue expanding its product matrix in new business areas.
Profit forecast: Chipcom is a leading manufacturer of scarce MEMS inertial guidance in the industry. We are optimistic that the company's performance will continue to grow driven by the rapid increase in downstream demand for MEMS inertial guidance and new application scenarios for automotive autonomous driving. The company's 2024-2026 revenue is expected to be 48/6.37/885 million yuan, and net profit to mother is 210/2.92/404 million yuan, corresponding to EPS of 0.53/0.73/1.01 yuan, maintaining the “buy” rating.
Risk warning: Product development risks, new product releases falling short of expectations, rising raw material prices.