Incident: On the evening of April 26, Staway released its 2023 annual report and 2024 quarterly report. In 2023, the company achieved revenue of 2,857 billion yuan (YoY +15.08%), net profit due to mother of 0.14 million yuan (year-on-year reversal of loss), and net profit of 60.74 million yuan (year-on-year loss). For the 4Q23 single quarter, the company achieved revenue of 1,084 billion yuan (YoY +30.9%, QoQ +54.89%), a record high in revenue for the single quarter, with net profit attributable to mother of 80 million yuan (year-on-year reversal loss, QoQ +9120.14%), and net profit after deducting non-return to mother of 61 million yuan (year-on-year reversal loss, QoQ +1386.38%).
In Q1 2024, the company achieved revenue of 837 million yuan (YoY +84.31%, QoQ -22.78%), the second-highest level in the history of a single quarter, with net profit attributable to mother of 0.14 billion yuan (year-on-year reversal loss, QoQ -82.4%) and net profit excluding non-return to mother of 0.2 billion yuan (year-on-year reversal loss, QoQ -67.61%).
“Security+phone+car” went hand in hand, and the product matrix continued to improve. In 2023, the company adhered to the three-legged development direction of “smart security+smartphone+automotive electronics”, continuously optimized and perfected the product matrix, and successfully built a second-tier growth curve for high-end smartphone products. In 2023, the company's smart security revenue was 1,671 million yuan (YoY +0.41%), accounting for 58.49% of main revenue; smartphone revenue of 892 million yuan (YoY +50.4%), accounting for 31.21% of main revenue; and automotive electronics revenue of 294 million yuan (YoY +30.45%), accounting for 10.3% of main revenue. In the field of smart security, the company continues to maintain its leading position in the global market with a complete product matrix, excellent R&D strength and rapid response capability; in the smartphone field, the company continues to deepen cooperation with existing customers in various product fields, and its market share continues to increase. In particular, many XS series 50 megapixel products have been successfully mass-produced, opening up a second growth curve for the company's smartphone revenue; in the field of automotive electronics, the company continues to deepen cooperation with many mainstream car manufacturers, and the number of industry solution capabilities and influence has increased significantly, and the number of covered model projects has increased dramatically .
High-end CIS smartphone products were successfully shipped, opening up a second growth curve. The company's smartphone CIS revenue grew rapidly in 2023, and its share of revenue continued to rise. At present, the resolution of the company's mobile CIS products has covered 800,000 to 50 megapixel requirements, and several XS series high-end products for flagship main and auxiliary cameras (including telephoto and wide-angle) have been shipped on a large scale, successfully opening up a second growth curve for the company. In addition to the 550XS and 520XS launched in 2023, in January 2024, the company launched the first 50 megapixel 1/1.28 inch CIS 580XS. This product uses the 550XS 22nMHKMG Stack process. The single-pixel pixel size is 1.22 μm, and has performance advantages such as high dynamic range, low noise, 100% full pixel focus, and ultra-low power consumption, and is mainly aimed at flagship smartphone main cameras.
Investment advice: The company's net profit for 24-26 is estimated to be 275/549/860 million yuan, respectively, and the PE corresponding to the current price is 71/36/23 times, respectively. Considering the company's product competitiveness in the field of security monitoring, it continues to lay out horizontally in the fields of smartphones, in-vehicle CIS, etc., to create a second growth pole and maintain a “recommended” rating.
Risk warning: the risk of price fluctuations such as upstream OEM; the risk of increased competition in the industry; the risk of new product development and new market development falling short of expectations.