Incident: The company released its report for the first quarter of 2024. In 24Q1, it achieved sales revenue of 602 million yuan, a year-on-year increase of 110.68%, and a month-on-month increase of 4.75%. Net profit to mother was 101 million yuan, an increase of 224.79% year on year. After deducting non-net profit, it was 100 million yuan, an increase of 226.69% year on year. The 24Q1 consolidated gross margin was 42.57%, +1.34pct yoy and +0.04pct month-on-month.
The 24Q1 off-season was strong, and demand in the smartphone and other markets continued. The company's products are mainly used in consumer electronics fields such as mobile phones, laptops/tablets, power adapters, smart wearable devices, etc., industrial fields such as energy storage power supplies, power tools, etc., and automotive fields. The smartphone market is the company's dominant field. The products have been recognized by well-known brand mobile phone customers, and the penetration rate of high-power charging continues to increase, driving up market demand.
Improve the mobile phone power management chip layout and increase the value of a stand-alone device. The company's charge pump products continue to launch highly integrated and high-performance products. Currently, up to 300W fast charging can be achieved, further consolidating its leading position in the industry.
The company has reached in-depth cooperation with mainstream domestic mobile phone manufacturers using charge pump products to actively promote the introduction of other product lines into the mobile phone field. Currently, the company has achieved full link coverage of smartphone power management chips such as wired charging, wireless charging, screen driver chips, and lithium battery protection chips, and the value of mobile phone stand-alone devices continues to increase.
Significant progress has been made in increasing investment in the automotive electronics business. The company attaches great importance to the automotive electronics business, invests many resources to develop multiple projects, and introduces products to many well-known leading customers in the industry. In 2023, the company's USB and wireless charging solutions achieved large-scale mass production. New products such as high-performance DC/DC power chips, HSD chips, and e-Fuse chips achieved large-scale sample delivery on the client. Some customers have already entered the targeted design stage of the project, and all projects are progressing smoothly. In 2023, the company's revenue in the automotive electronics sector was about 30.64 million yuan, an increase of 89% over the previous year. As products continue to be introduced, the automotive electronics business is expected to maintain a high growth rate in 2024.
Profit forecast: The company's 24-26 revenue is estimated at 24.47, 31.54, and 3,928 billion yuan, respectively, and net profit of 4.01, 5.25, and 654 million yuan. As a leading global manufacturer of mobile phone charge pump charge management chips, Nanxin has a rich product structure, wide power coverage, and various new products are continuously introduced to customers. It is also actively laying out automotive electronics and other fields, with broad development prospects and maintaining a “gain” rating.
Risk warning: risk of product development and technological innovation; risk of downstream market development; increased risk of market competition