Key points of investment

Power management+signal chain two-wheel drive, steady revenue growth. The company achieved revenue of 472 million yuan in 2023, +7.06% year over year, including wireless charging product series of 210 million yuan, +64.06%; signal chain products represented by optical sensing; realized net profit of 0.3 billion yuan, -42.67% year over year; comprehensive gross profit margin of 28.79%, -3.96% year on year; achieved operating income of 95 million yuan, +18.26% year over year, net profit to mother - 13 million yuan, mainly due to a decline in gross profit and a significant increase in R&D and management expenses To you.

The optical transmission series product line is gradually being enriched and is about to usher in high growth. At present, the company has made significant progress in a number of signal chain optical sensing products. Among them, in-ear detection and narrow-slit three-in-one sensing have all entered mass production; the polarizing light crown chip is the industry's first high-precision optical tracking sensor with integrated rotation and compression detection functions, and large-scale delivery has already begun for well-known customers in the industry. The Q1 optical transmission series products have achieved sales revenue of 0.1 billion yuan in 2024, and the company will continue to launch product lines such as ambient light sensing, proximity sensing, skin recognition sensing, and optical displacement sensing, which are expected to increase rapidly within 2-3 years.

Actively expand the application ecosystem and continue to expand the wireless charging business. The popularity of wireless charging in vehicles combined with the decline of wireless charging in smartphone terminals has led to an increase in demand for products such as wireless charging chips. The company continues to improve the full range of 5W-100W wireless charging receivers and transmitters, and pioneered the launch of 80W wireless charging receiver chips with process innovation and technological iteration to meet the application requirements of the Ministry of Industry and Information Technology's latest wireless charging standards and flagship brands. The wireless charging business accounted for 42.52% of revenue in 2023, +14.77% year-on-year, and is expected to continue to support the company's performance growth in 24 years.

Investment advice:

We expect the company's 2024-2026 net profit of 0.5/1.2/210 million yuan, maintaining a “buy” rating.

Risk warning:

Overseas market recovery fell short of expectations; industry competition increased risks; progress of new products fell short of expectations.