Expanding the product layout around application scenarios, the company performed well in 2023. In 2023, the company achieved revenue of 1,780 billion yuan, +36.87% year-on-year; realized net profit of 261 million yuan, +6.16% year-on-year. Looking at a single quarter, 2023Q4 achieved revenue of 575 million yuan, +124.78% year over month, and realized net profit of 81 million yuan to mother, a significant increase over the same period last year, +1.98% month on month.
The company has strong competitiveness in some product segments, and gross margin remained stable in 2023. In 2023, the company achieved gross profit margin of 42.30%, -0.74pct year on year; net profit margin was 14.68%, -4.25pct year on year. Looking at a single quarter, the gross margin of the 2023Q4 company was 42.53%, +0.89pct year on year, 0.62pct; the company's net margin was 14.12%, +14.01pct year on year, -0.47pct month-on-month. In 2023, the company invested 293 million yuan in R&D, +57.02% year-on-year. As of December 31, 2023, the number of R&D personnel in the company increased to 378, +32.17% compared with the same period last year.
With the expansion of product numbers around smartphones, the value of stand-alone devices is expected to continue to increase. The company has reached in-depth cooperation with mainstream domestic mobile phone manufacturers with wired charging chips. On this basis, the company has continuously enriched its product range around customer needs, and has now achieved full coverage of wired charging, wireless charging, screen driver chips, and lithium battery protection chips for smartphone companies. With the gradual introduction of the company's products into mass production, the value of the company's stand-alone devices in the mobile phone field is expected to continue to increase.
Actively expand downstream markets such as automobiles and industry, and achieve rapid growth in automotive electronics revenue. The company moved from in-vehicle wireless charging and wired charging chips to automotive customer supply chains. In 2023, the company's USB and wireless charging solutions achieved large-scale mass production on the client; new products such as high-performance DC-DC power chips, HSD chips, and e-Fuse chips achieved large-scale sample delivery on the client, and some customers have already entered the targeted design stage of the project. In 2023, the company's automotive electronics achieved revenue of 30.641 million yuan, +89.02% year-on-year.
The trend of increasing mobile phone charging power has not changed, and revenue from charge pump chips is expected to maintain steady growth. In terms of high-power charging, the charging power of consumer terminals represented by mobile phones has gradually increased. Conventional 18W charging power has been gradually replaced by 33W. Some high-end models and flagship models have introduced 200W or more charging power, driving the penetration rate and charging power of high-power charging to continue to increase, and is expected to drive the unit price of the company's charge pump chips to increase.
Profit forecast: We expect the company's net profit to be 3.31/5.05/637 million yuan for 2024/2025/2026, respectively, corresponding to the share price PE on March 25, 40/26/21 times, respectively, to maintain a “buy” rating.
Risk warning: New product development falls short of expectations, downstream expansion falls short of expectations, and consumer demand continues to weaken.