Incident: On April 26, 2024, BiYi Wei released its 2024 quarterly report. In the first quarter of 2024, the company achieved operating income of 136 million yuan, YOY +2.48%, QoQ -12.98%, and net profit of 280,000 yuan to mother, turning losses into profits year-on-year.
Q1 Revenue increased year over year, and profit turned loss into profit. The Q1 company achieved operating income of 136 million yuan, YOY +2.48%, QoQ -12.98%; gross profit margin of 26.59%, an increase of 3.57 pcts month-on-month; net profit to mother of 280,000 yuan, turning losses into profits year-on-year. We believe that the company continues to promote product structure optimization to drive the company's gross margin increase. Furthermore, in terms of inventory, the company's Q1 account had inventory of 148 million yuan, which has continued to decline since Q3 '23, showing signs of a recovery at the bottom of the company's business.
The product structure is continuously optimized, and downstream application fields are gradually being enriched. With leading technical strength, reliable product quality and excellent customer service, the company's share of new downstream consumer electronics, industrial control, network communications, data centers and automotive electronics products continues to grow, and the new products are progressing smoothly.
AC-DC: Various products such as interleaved PFC and LLC are continuously launched to actively promote the localization of high-power fast charging (up to 240W) and high-power power power supplies (up to 3000W) applications.
LED driver: It has successfully entered the supply chain of leading customers in the high-power LED lighting industry. The maximum mass-produced product power can reach 1000W, and the company launched a QR Buck LED backlight driver chip with high-precision deep dimming. By providing a one-stop chip solution that is rare in China, it has successfully been mass-produced in smart TVs, smart conference systems, indoor multimedia advertising systems, etc.
DC-DC: Covering the full range of 4.5-40V voltage ranges and 0.6-6A current range, has been approved by leading customers for multiple benchmark projects, and is actively developing high-current products above 8A and high-voltage products above 60V. Among them, CMCOT architecture DC-DC products with 100V high voltage resistance have been introduced to customers and tested, and are mainly used in garden tools, industrial power supplies, new energy and other fields.
Battery management chip: Launched a high-side/low-side driving BMSAFE chip that can support battery management system applications within 110V, and is also actively developing a daisy chain cascaded BMS AFE chip.
Motor drive: The acquisition of Dongxin Micro Chengdu completed the new layout of this business segment. A number of single-phase BLDC motor drive control chips have been applied in batches to cooling systems in applications such as CPUs, GPUs, PCs, servers, and lithium battery energy storage.
In addition, the company has also vigorously expanded the layout of signal chain products such as amplifiers, converters, sensors, isolation chips, and interface chips. Among them, operational amplifiers and USB & Type-C interface chips have been mass-produced.
Investment advice: We expect the company's net profit to be 0.24/0.61/105 million yuan in 2024/25/26, respectively, and 77/30/18 times the current PE price in 2024-26, respectively. The company will continue to explore new markets such as DCDC, BMS AFE, and motor drives based on ACDC, and product progress is progressing steadily. Maintain a “Recommended” rating.
Risk warning: risk of insufficient product development iteration; risk of downstream demand falling short of expectations; risk of market competition.