Event: On April 24, the company released its 2023 Annual Report and 2024 Quarterly Report. In 2023, the company achieved operating income of 2,147 billion yuan, a year-on-year decrease of 6.88%; realized net profit to mother of 64.509 million yuan, a year-on-year decrease of 49.54%. In the first quarter of 2024, the company achieved operating income of 574 million yuan, a year-on-year increase of 29.65%; realized net profit to mother of 6.4669 million yuan, a year-on-year decrease of 64.33%.
The wireless communication module+solution is two-wheel drive, and the energy storage company has been developing steadily for a long time. The company is deeply involved in the field of wireless communication modules, continuously improving product performance and technical strength along with the development of the AI industry. The company's intelligent connected vehicle business continues to develop rapidly, continuously expanding cooperation with new car builders, Tier 1 manufacturers and joint venture brands. Related revenue has maintained a rapid growth trend, and its share of revenue continues to rise. At the same time, the FWA business was affected by changes in demand from overseas operators, changes in existing customer structure and demand, etc., and overall demand weakened, and its share of revenue declined. However, the company continues to make breakthroughs in Europe, North America, and Japan, and new 4G\ 5G products launched by manufacturers such as Qualcomm and Zhanrui continue to win bids for projects. In 2023, the company continued to gain strength in overseas markets, increasing performance and contributing new impetus. The share of overseas market revenue increased from 23.66% in 2022 to 30.56%. The gross margin level for the whole year increased to 19.16% from 17.86% in 2022, and the profit level declined due to increased R&D investment and sales expenses. We believe that in the future, as the market for products such as intelligent modules and high computing power modules continues to expand, the company's performance may steadily improve.
Continuously explore the development direction of generative AIGC, and further evolve high-computing power AI module capabilities. The company has long been concerned about the changes brought to the module industry by the development of computing power, and has forward-looking layout of AI module teams with high computing power. According to the company's official account, the company joined hands with Agasai to successfully launch a multi-sensing integrated VSLAM solution by combining the hardware advantages of the computing power module with AI optimized deployment technology. VSLAM combines navigation technology with artificial intelligence and 3D vision technology, and can collect data information through a visual camera installed on an autonomous mobile robot to generate real-time 3D maps of all objects in the surrounding area. VSLAM is based on the MeiG high computing power AI module SNM970 and is equipped with a Qualcomm QCS8550 chip. Using Agasai's high-performance SoC scheduling capabilities, VSLAM makes full use of the CPU and GPU heterogeneous computing capabilities of the high-computing power AI module to accelerate the VSLAM algorithm, and can be widely used in intelligent robots, driverless driving, metaverse and gaming.
The MeiG SNM970 has an AI computing power of up to 48 tops, which can easily match the high computing power requirements of service robots, and is equipped with a Qualcomm Hexagon processor, a Qualcomm neural network processing unit. It supports WiFi7, Bluetooth 5.3, and 2x2 WiFi MIMO connections, bringing a more stable and smooth network experience to terminal scene applications. At the same time, it can also meet developers' requirements for multi-modal sensing technologies such as voice recognition, machine vision, navigation, positioning, and obstacle avoidance, making the human-computer interaction experience smoother 1.
Profit forecast and investment rating: We expect the company's 2024-2026 net profit to be 1.21/1.70/204 million yuan, and the 2024-2026 EPS will be 0.46/0.65/0.78 yuan, respectively. The PE corresponding to the current stock price will be 48/34/29 times, respectively. As the company's computing power module technology continues to be upgraded and iterated, we are optimistic about the company's future performance development and maintain a “buy” rating.
Risk warning: industry competition increases risk; risk of macroeconomic fluctuations; risk of product quality control; risk of exchange rate.