Short-term pressure on the 2023 results. 2024Q1 revenue and performance recovered year on year, maintaining the “buy” rating 2023: the company achieved revenue of 2,616 billion yuan, -17.94% year on year; net profit to mother of 281 million yuan, -67.86% year on year; net profit of 212 million yuan, -74.99% year on year; gross profit margin 49.6%, -9.38 pcts year on year; sales/management/R&D expenses accounted for +2.30/+1.09/+8.55pcts year on year, respectively; 2024Q1: The company achieved revenue 729 million yuan, +42.03% year over month, -0.75% month on month; net profit to mother of 54 million yuan, +80.04% year on year, -60.8% month on month; net profit without return to mother 50 million yuan, +713.11% year on month, -57.32% month on month; gross profit margin 52.49%, -0.18 pcts year on year, +5.27 pcts month on month. The company's 2023 performance is mainly under pressure: (1) the decline in product sales due to the decline in industry sentiment and the fall in the price of some products in some application fields. (2) the company continued to insist on R&D in the downturn cycle, and the R&D expenditure ratio was +8.55pcts compared to the same period last year. Driven by fields such as consumer electronics, automotive electronics, AI chips, etc., the industry has recovered since 2023Q3. We have maintained the company's 2024-2025 net profit forecast of 335/770 million yuan and added the 2026 profit forecast of 1,179 million yuan, corresponding EPS of 0.71/1.64/2.51 yuan. The PE corresponding to the current stock price is 108.4/47.1/30.7 times, focusing on 2024Q1. The company's performance has increased significantly year-on-year. The gross margin has improved month-on-month. The recovery trend is obvious. We are optimistic The company maintains a “buy” rating due to the growth in performance brought about by the continued diversification of product categories and a steady increase in market share.
Product categories continue to be rich. Looking at the trend of multifunctionality, high-end, and complexity, in 2023, the company launched a number of new products at a high level to meet market needs, including: high-precision voltage references, high-precision current detection amplifiers, high-speed low-side gate drivers with negative input voltage capability, 8-channel low-side driver chips with PWM control output, etc., covering a wide range of categories, and the product matrix is further enriched. Overall, the company's new product development is gradually showing a trend of multifunctionality, high-end, and complexity. More new products use more advanced processes and packaging forms, such as next-generation high-voltage BCD technology with lower on-resistance, 90nm analog and mixed signal technology, WLCSP packaging, etc.; in terms of R&D, by the end of 2023, the company had 1,029 R&D personnel, accounting for 72.72% of the company's total number of employees, +14.84%; R&D expenses were 737 million yuan, +17.78% year-on-year, accounting for 28.18% of revenue At 8.55pcts, the company still firmly invests in R&D during the downturn cycle, demonstrating the company's confidence in long-term development.
Risk warning: downstream demand falls short of expectations; customer introduction falls short of expectations; technology research and development falls short of expectations.
