Incidents:
1. The company released its 2023 annual report. In 2023, the company achieved operating income of 913 million yuan, a year-on-year decrease of 17.43%; realized net profit attributable to owners of the parent company of 150 million yuan, a year-on-year decrease of 34.30%; and realized net profit deducted from mother of 116 million yuan, a year-on-year decrease of 43.28%.
2. Judging from the Q4 single-quarter results, achieved revenue of 232 million yuan, up 0.46% year on year and 15.82% month on month; realized net profit attributable to owners of the parent company of 0.39 million yuan, up 416.39% year on year, up 15.75% month on month; realized net profit without return to mother of 31 million yuan, up 210.95% year on year and 17.63% month on month.
The 23-year performance was under phased pressure, and Q4 revenue resumed year-on-year growth:
The company's 2023 performance declined compared to last year, mainly due to multiple factors such as the decline in global economic development, declining market demand, and pressure on the industry to remove inventory. The image sensor market segment the company focuses on is weak, and packaging orders and shipments have decreased. The company's revenue in 2023 was divided by product, with chip packaging and testing accounting for 67.00% and optical devices accounting for 32.40%. Compared with the same period last year, chip packaging and testing decreased by 28.60% and optical devices increased by 23.59%.
The year-on-year increase in optical device revenue was mainly due to increased market demand for semiconductor equipment, intelligent manufacturing, agricultural automation, etc., and the sales scale of the optical device business increased. Looking at the 23Q4 single quarter, the company's revenue improved year-on-year and month-on-month. After experiencing three consecutive quarters of year-on-year decline, the company's revenue began to resume growth. In terms of net profit, the company achieved a significant year-on-year increase, with a slight improvement over the previous month.
Autonomous driving drives continued growth in the CIS automotive market
Driven by the wave of automobile intelligence, the number of bicycle camera applications continues to increase as a core component for autonomous driving, driving the continuous growth of the in-vehicle CIS market. According to data from Qunzhi Consulting, global automotive CIS shipments are expected to reach 350 million units in 2023, an increase of 9% over the previous year; benefiting from demand from ADAS, autonomous driving, etc., the compound growth rate of automobile CIS shipments is expected to reach 13.17% in 2028. The company is a global leader in CIS packaging and testing. It is expected to continue to benefit from the rapid growth of the automotive CIS market in the future by optimizing and improving the TSV-STACK packaging process level in response to the iterative development of demand in the automotive electronics field, while leveraging its diverse technical service capabilities such as TSV, Fan-out, and module integration.
Investment advice:
We expect the company's revenue from 2024 to 2026 to be 1,278 million yuan, 1,701 billion yuan, and 2,211 billion yuan, respectively, and net profit to mother of 298 million yuan, 397 million yuan, and 520 million yuan respectively. Considering the recovery of the semiconductor industry, the company is developing new products smoothly. The company was given a valuation of PE45.00X in 2024, corresponding to a target price of 20.7 yuan. Give it a “buy-A” investment rating.
Risk warning:
Industry prosperity falls short of expectations, product development falls short of expectations, and market development falls short of expectations.