share_log

闻泰科技(600745):汽车半导体量价齐升 ODM海外特定客户新品放量

Wingtech Technology (600745): The volume and price of automotive semiconductors has risen sharply, and the number of new products released by ODM overseas specific customers

國海證券 ·  Apr 24, 2024 00:00

Incidents:

On April 22, Wingtech released the 2023 Annual Report and the 2024 First Quarter Report.

In 2023, we achieved revenue of 61,213 billion yuan, an increase of 5.40% over the previous year; realized net profit of 1,181 million yuan, a year-on-year decrease of 277 million yuan; realized net profit without deduction of RMB 1,127 million, a year-on-year decrease of 451 million yuan.

Looking at a single quarter, 2023Q4 achieved revenue of 16.801 billion yuan, a year-on-year increase of 10.49%; net profit loss to mother of 918 million yuan, 2022Q4 net profit loss of 484 million yuan; net profit loss after deducting non-return to mother of 852 million yuan, and 2022Q4 net profit loss of 415 million yuan after deducting non-return to mother; net profit to mother and net profit after deducting non-return to mother both changed positive and negative month-on-month.

In 2024Q1, the company achieved revenue of 16.247 billion yuan, a year-on-year increase of 12.62% and a decrease of 3.30%; realized net profit to mother of 143 million yuan, a year-on-year decrease of 68.82%, turning a month-on-month loss into a profit; and net profit loss of 87 million yuan after deducting non-return to mother.

Investment highlights:

Semiconductor business: The automotive semiconductor business accounts for 62.8%, and the value of bicycle usage has risen sharply. In 2023, the company's semiconductor business achieved revenue of 15.226 billion yuan, a year-on-year decrease of 4.85%; gross profit margin of 38.59%; and net profit of 2,426 billion yuan, a year-on-year decrease of 35.29%. 2024Q1, the company's semiconductor business achieved revenue of 3.423 billion yuan, a year-on-year decrease of 9.84%; gross profit margin of 31%; and net profit of 516 million yuan, a year-on-year decrease of 21.77%. The main reason for the decline in performance is that 2023Q4 was affected by the global economy, the growth rate of demand for automotive semiconductors slowed in stages, and semiconductor demand in Europe and the US, where the company's main source of revenue was weak; on the other hand, the company continued to increase investment in R&D. In 2023, it invested 1,634 billion yuan in semiconductor R&D, an increase of 37.2% over the previous year. The company's product structure changed significantly in 2023. The automotive sector maintained its leading edge, and its revenue share continued to increase, from 48.6% in 2022 to 62.8%, an increase of 22.9 pct over the previous year. The average bicycle usage value of the company's semiconductor products increased from 9 US dollars in 2022 to 11.3 US dollars in 2023, an increase of 25.6% over the previous year; the number of bicycles used in the latest models rose from 600 fuel vehicles to 1,000 new energy vehicles, an increase of 66.7%. In the future, as automobiles show a trend of electrification and intelligence, and the continuous expansion of product numbers, the company's automotive semiconductor business is expected to rise sharply in volume and price.

Product integration business: The business field continues to expand, and new 2024Q1 products for specific overseas customers have begun to be released.

In 2023, the company's product integration business achieved revenue of 44.315 billion yuan, a year-on-year increase of 11.99%; gross profit margin of 8.37%; and net loss of 447 million yuan. If the impact of goodwill impairment of 494 million yuan is deducted, the company will achieve profit and year-on-year improvement. 2024Q1, the company's product integration business achieved revenue of 12.42 billion yuan, an increase of 20.71% over the previous year. The main reason for the increase was driven by the start of new products for the company's specific overseas customers; net loss was 346 million yuan. Fluctuations in performance were mainly affected by factors such as sluggish industry demand and supply chain price increases. In 2023, starting with the mobile phone sector, the company gradually expanded into new fields such as tablets, laptops, IoT, home appliances, and automotive electronics. At the same time, it actively developed overseas markets and achieved services for the world's leading brand customers in various fields.

Seize the new opportunities under the AI wave, and fully deploy AI phones and AI PCs. Facing new opportunities in product technology upgrades and switching cycles brought about by AI technology, the company has accumulated rich experience in product implementation and transformation by continuously expanding the scale of R&D, and cooperated with customers to infiltrate and popularize AI in mobile phones, laptops and other fields around the “AI+” strategy. In terms of mobile phones, the company has begun to jointly develop AI phones with overseas customers, and is currently actively assisting customers in popularizing AI to mid-range and low-end phones. On the PC side, the company is one of the important suppliers in the manufacture of notebook computers for specific overseas customers. The AIPC products produced with the company began global sales in early 2024. In the future, it will further strengthen cooperation with overseas customers and promote the continuous growth of related projects.

Profit forecast and investment rating: The company is a leading global power semiconductor and ODM manufacturer, and is expected to maintain steady growth in the future, driven by emerging applications such as electric vehicles and AI. Entering 2024, the company's product integration business was affected by factors such as low industry demand and supply chain price increases, and performance fluctuated. Therefore, we adjusted our profit forecast. The company is expected to achieve revenue of 681.78, 772.36, and 88.558 billion yuan respectively in 2024-2026, achieving net profit to mother of 23.03, 27.69, and 36.45 billion yuan. The corresponding PE is 16X/14X/10X, maintaining a “buy” rating.

Risk warning: 1) Risks brought about by increased competition in the power semiconductor market; 2) the recovery in downstream consumer electronics demand falls short of expectations; 3) demand in the automotive and industrial markets falls short of expectations; 4) the recovery in overseas markets falls short of expectations; 5) the implementation progress of the company's product integration business projects falls short of expectations.

The translation is provided by third-party software.


The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
    Write a comment