Event Overview:
The company released its 2023 annual report: The company achieved annual revenue of 3.66 billion yuan, an increase of 35.4%; net profit to mother of 9.1 billion yuan, an increase of 11.4%; deducted non-net profit of 890 million yuan, an increase of 16.3%. The 23Q4 company achieved operating income of 1.04 billion yuan, an increase of 25.6% and an increase of 12.1%; net profit to mother of 250 million yuan, an increase of 10.9% and an increase of 10.5% to the environment; non-recurring profit and loss was 0.04 billion yuan, mainly affected by government subsidies (8.4 million yuan in subsidies), deducting non-net profit of 260 million yuan, an increase of 18.0% and an increase of 16 percent.
9%
23 years of steady improvement in performance, marginal improvement in profitability
The company's performance has improved steadily: According to Omdia data, the size of China's power semiconductor market is expected to increase by 11.0% in 2023, and the company achieved revenue growth of 35.4%, showing growth beyond the industry; in terms of business segments: 1) The revenue of the industrial control and power industry was 1.28 billion yuan, up 15.6%, accounting for 34.9%; 2) The new energy industry's revenue was 2.16 billion yuan, up 48 yuan.
1%, accounting for 58.9%; 3) The revenue of inverter white goods and other industries was 200 million yuan, an increase of 69.5% over the same period, accounting for 5.5%.
Marginal improvement in operating conditions: Judging from gross margin, the company's gross margin for 22Q4-23Q4 was 38.6%/36.4%/36.0% /36, respectively.
6%/40.5%, the company's 24Q4 gross margin increased 1.9 pcts, and the quarter increased 3.9 pcts. From an inventory perspective, the company's 23Q4 inventory turnover days was 154.3 days, down 4.4 days from month to month, and inventory turnover accelerated.
The SiC business is growing rapidly, and production capacity continues to be implemented
1) In 2023, the company's automotive-grade SiC MOSFET modules used in new energy vehicle main controllers were applied in large quantities, and several 800V system main motor controller projects using automotive-grade SiC MOSFET modules were added, which will continue to drive the company's 24-30 vehicle-grade SiC MOSFET module sales growth; 2) The company's own automotive-grade SiC MOSFET chips passed the company's vehicle verification and began batch production in multiple automotive power module packaging platforms Shipment; 3) The company and Deep Blue Automobile jointly established Chongqing Anda Semiconductor Co., Ltd. to develop and produce high-performance, high-reliability automotive-grade IGBT modules and automotive-grade SiC MOSFET modules. It is expected that plant construction will be completed and production will begin in 2024.
The industry sentiment is expected to improve, and models will contribute to performance on a targeted basis
1) As industry sentiment picks up, demand for power semiconductors in smart grids, new energy vehicles and other fields will increase dramatically. According to data from the China Business Research Institute, China's power semiconductor market is expected to reach 175.26 billion yuan in 2024, an increase of 15.3%.
2) In 2022 - 2023, the company's automotive-grade IGBT modules received Tier 1 designation from a number of international first-tier brands and began large-scale delivery, and several new main motor controller projects were added; the company's 1200V automotive-grade IGBT module based on seventh-generation micro-groove Trench Field Stop technology was added to the main motor controller project for several 800V system models, and with the fixed point and mass increase of SiCMOSFET modules, it is expected to provide a continuous impetus for the company's 2024 performance growth.
Investment advice
Considering the company's 2023 performance, we adjusted the company's net profit forecast for 2024-26 to RMB 10.8/1,47/1.76 billion yuan (previously, the net profit forecast for 24/25 was RMB 16.1/2.03 billion), and the corresponding PE was 24.3/17.8/14.9X, respectively. Given the company's leading position in the field of new energy, the company is expected to fully benefit from the acceleration of domestic substitution. Maintain a “buy” rating.
Risk warning
The industry sentiment falls short of expectations, R&D progress falls short of expectations, production capacity falls short of expectations, and the risk of untimely updates of research and usage data.