Revenue increased 42% year-on-year in the first quarter, and gross margin increased month-on-month. The company's revenue in 2023 was 2,616 billion yuan (YoY -17.94%), net profit of 281 million yuan (YoY -67.86%), net profit of non-attributable net profit of 212 million yuan (YoY -74.99%), and gross margin fell 9.4pct to 49.60% due to market competition and changes in product structure; of these, revenue from power management products was 1,746 billion yuan (YoY -12.31%), accounting for 67%, gross margin decreased by 9.3 pct to 46.10%; signal chain product revenue was 870 million yuan ( YoY -27.07%), accounting for 33%, and gross margin fell 8.3pct to 56.64%. 1Q24 achieved revenue of 729 million yuan (YoY +42%, QoQ -1%), net profit of 54 million yuan (YoY +80%, QoQ -61%), and gross profit margin of 52.49% (YoY -0.2pct, QoQ +5.3pct).
Increase investment in R&D, and add more than 900 new products in 2023. In 2023, the company's R&D expenses increased 18% year-on-year to 737 million yuan, and the R&D rate increased by 8.6pct to 28.18%; by the end of 2023, there were 1,029 R&D personnel, accounting for 72.72% of the company's total number of employees, an increase of 133 over the end of 2022, including 337 people with ten years or more of experience in integrated circuits, accounting for 33%. In 2023, the company added more than 900 new products, including high-precision voltage references, high-precision current detection amplifiers, high-speed low-side gate drivers with negative input voltage capability, bidirectional charge pumps, high-efficiency synchronous DC/DC boost chips, 8-channel 14-bit 1MSPS low-power ADC, automotive-grade 16-channel 12-bit 1MSPS serial ADC, high-speed low-side driver chips, 8A high-efficiency synchronous step-down chips, 23V/6A bidirectional high-current limit accuracy electronic fuses, 120V high-speed half-bridge driver chips, and automotive-grade synchronous step-down conversion Appliances, etc., cover all product categories.
There are more than 5,200 products available for sale in 32 categories, covering thousands of customers. The increase in R&D personnel, the accumulation of experience, and the improvement of technical strength have led to a continuous increase in the variety and quantity of the company's products. Currently, the company has more than 5,200 products to sell in 32 categories. The company's products serve a wide range of markets and customers, covering more than 100 market segments and thousands of customers. While expanding existing market areas, it is also actively developing applications such as the Internet of Things, new energy, artificial intelligence, and communications. In the future, the two dimensions of products and customers are expected to reinforce each other, providing a guarantee for the company's growth.
Investment advice: Analog chip platform companies, maintaining a “buy” rating. We expect the company's net profit to be 4.78/7.72/1,057 million yuan in 2024-2026 (the value before 2024-2025 was 475/760 million yuan), and the PE corresponding to the stock price on April 26, 2024 is 71/44/32x, respectively. We are optimistic about the company's long-term growth capacity as an analog chip platform company and maintain a “buy” rating.
Risk warning: The risk of product development falling short of expectations, customer introduction falling short of expectations, and increased competition.