The company released its 2023 annual report. In 2023, it achieved operating income of 926 million yuan, an increase of 9.64% year on year; net profit attributable to the parent company was 311 million yuan, up 10.61% year on year; net profit after deducting non-recurring profit and loss was 277 million yuan, an increase of 2.55% year on year. The company plans to distribute a cash dividend of 1.12 yuan (tax included) for every 10 shares to all shareholders.
The company's annual revenue and profit both increased. According to the annual report, the company achieved revenue of 926 million yuan in 2023, an increase of 9.64% over the previous year, of which digital integrated circuit revenue was 425 million yuan, down 0.45% from 2022, and analog integrated circuits were 448 million yuan, an increase of 38.46% over 2022. For the whole year, the company's net profit attributable to shareholders of listed companies was 311 million yuan, an increase of 10.61% over the previous year. Achieved net profit of 277 million yuan after deducting non-recurring profit and loss attributable to shareholders of listed companies, an increase of 2.55% over the previous year. In terms of expenses, the company's sales expenses increased 7.31% year on year, mainly due to the increase in expenses related to the company's sales activities; management expenses increased 29.61% year over year, mainly due to the company's increase in management personnel due to strategic development needs and the need to expand production and operation, while office and travel expenses increased a lot; R&D expenses increased 16.75% year on year, mainly due to the company's increase in R&D investment. In 2024, the company expects related sales or labor services of 36 million yuan, a year-on-year increase of 29.45% over the actual amount of 27.81 million yuan generated in 2023. The company plans to distribute a cash dividend of RMB 1.12 (tax included) to all shareholders for every 10 shares. This time, the company's cash dividend amount accounts for 22.93% of the net profit attributable to the owners of the parent company in the company's 2023 consolidated statement. There will be no bonus shares, and no capital reserve will be transferred to share capital.
Deep technology accumulation and perfect R&D system. Since its establishment, the company has been deeply involved in the field of special integrated circuits, has deep technical accumulation, established a complete R&D system, and formed a series of core technical achievements with independent intellectual property rights. It has undertaken many national key R&D plans and major scientific and technological projects in the fields of FPGA, high-speed and high-precision ADC, intelligent SoC, etc., and the overall technical reserve is in the first tier of the special integrated circuit design industry. The company attaches great importance to investment in R&D of products and technologies. R&D expenditure accounted for 21.40% of revenue during the reporting period. According to the company's annual report, as of December 31, 2023, the company has 105 domestic invention patents, 5 overseas invention patents, 190 integrated circuit layout design rights, and 29 software copyrights. The company attaches great importance to the introduction and training of R&D talents. As of the end of the reporting period, the company had a total of 392 R&D personnel, accounting for 41.13% of the total number of employees; 6 core technicians, respectively, in the fields of product design and product inspection in the fields of high-performance FPGA, high-speed and high-precision ADC/DAC, and intelligent SoC. With their professional knowledge and technical accumulation, they have made outstanding contributions to the company in various aspects such as R&D project undertaking and execution, product development and industrialization, and R&D and quality management system construction.
The dual resonance of satellite internet and the low-altitude economy enhances the company's growth momentum. The company has vigorously strengthened the construction of a marketing network and established a technical support team with rich professional background, which can assist customers in technical verification and application support of products, and cooperate with the R&D department to thoroughly understand customer needs, thereby promoting the company's new product and technology research and development. After years of market verification, the company's products have been recognized by mainstream downstream manufacturers in the domestic special integrated circuit industry, and will be used in fields such as data processing, 5G communications, satellite communications, and low-altitude economy, bringing rapid growth to the company's upward performance.
Profit forecast: We estimate that the company's net profit due to mother for 2024-2026 will be 404 million, 507 million, and 639 million, respectively, corresponding valuations of 32, 25, and 20 times, and give it a “highly recommended” rating.
Risk warning: Military purchase orders have fluctuated, and market competition has intensified.