Revenue increased month-on-month in the first quarter, and gross margin rebounded month-on-month. In 2023, the company achieved revenue of 381 million yuan (YoY -23.96%), net profit due to mother of 0.15 million yuan (YoY -91.14%), net profit after deducting non-attributable net profit of 0.56 million yuan (YoY -139.64%), net profit to mother after excluding share payments was 49 million yuan, and gross margin decreased by 7.6pct to 47.43%. Among them, signal chain product revenue was 192 million yuan (YoY -15.89%), accounting for 50.44%, and gross margin decreased by 0.94 pct to 54.97%; revenue from power management products was 189 million yuan (YoY -30.74%), accounting for 49.55%, and gross margin decreased by 14.52 pct to 39.75%.
1Q24 achieved revenue of 128 million yuan (YoY +70%, QoQ +50%), net profit of 16 million yuan (YoY +61%, QoQ +191%), and gross profit margin of 45.69% (YoY -2.5pct, QoQ +3.2pct).
R&D expenses doubled in 2023, with more than 1,600 product models. The company's R&D expenses increased 108% to 146 million yuan in 2023, and the R&D rate increased by 24pct to 38.4%; by the end of 2024, there were 188 R&D personnel, an increase of 77 over the end of 2023. High R&D investment accelerated the launch of the company's new products. In terms of signal chain chips, products with 95 MHz bandwidth, high-precision current detection amplifiers, etc., a series of 2-8 channel level transitions, high-precision multi-channel temperature sensors, and the first low-voltage/ultra-low power USB3.2 Gen1 Redriver in China were launched; in terms of power management chips, 1% high-precision 1.5A ultra-low voltage differential multi-channel LDO PMIC, four-channel intelligent high-side switch with adjustable high-precision current sampling and current limit, and complete diagnostic protection functions were launched Products such as 12-channel pixel-level taillights, high-side LED drivers, etc. At present, the company has more than 1,600 product models.
Continuously enrich the customer base and implement products in the fields of automobiles, AI terminals, servers, etc. In the field of automotive electronics, the company's various products, such as analog switches, power supplies, operational amplifiers, motor drives, headlight drivers, high-side drives, and temperature sensors, have been mass-produced by many terminal car manufacturers and leading tier 1. In terms of AI terminal products, the company launched a multi-channel LDO product with an ultra-high current of 1.5A and an ultra-low voltage difference of 43mV, which can improve the power efficiency of the system. It has now been introduced into Samsung's new mobile phones; the company's high-frequency, small-size DCDC converters have been mass-produced in AI computer products from well-known terminal computer manufacturers. In the server sector, the company has launched a full range of switching solutions, including PCIE3.0 switches with 11 GHz high bandwidth, and 8/4 channel I2C switches with reset function or interrupt input.
Investment advice: The company continues to expand new products, lay out multiple markets, and maintain the “buy” rating. We expect the company's net profit to be 0.91/1.33/174 million yuan in 2024-2026 (the value before 2024-2025 was 1.02 billion yuan), and the PE corresponding to the stock price on April 26, 2024 is 51/35/27x, respectively. The company continues to expand new products, lay out multiple markets, and maintain a “buy” rating.
Risk warning: New product development falls short of expectations; customer verification falls short of expectations; demand falls short of expectations.