Core views:
24Q1 profit increased year over year, and R&D expenses increased significantly. The company publishes its 2023 annual report and 2024 quarterly report. In 2023, the company achieved revenue of 4.378 billion yuan, +19.05% year-on-year, and realized net profit of 1,122 billion yuan, +4.95% year-on-year, and realized net profit after deduction of 1,095 billion yuan, or +2.78% year-on-year. In 24Q1, the company achieved revenue of 1,190 billion yuan, +67.16% year over month, -8.80% month on month, and realized net profit to mother of 198 million yuan, +69.83% year over year, and -34.8% month on month.
2024Q1's R&D expenses reached 269 million yuan, +119% year-on-year.
The L-pamid module is already in the engineering sample phase. 2023 is an important year for the company's 6-inch filter production line from small batches to mass production. According to the 2023 annual report, the company's 6-inch filter production line has actually shipped more than 8,000 pieces/month. The production capacity of the first phase is planned to be 10,000 tablets/month, and the production capacity of the second phase is increased to 16,000 tablets/month. According to the 2024 quarterly report, the company's 12-inch IPD platform has officially entered mass production. Related products such as L-PAMIF and LFEM, which integrate self-produced IPD filters, have been verified and mass-produced and shipped to multiple clients. The company integrated MAX-SAW L-PAMID products to achieve a major breakthrough from “0” to “1,” and is already in the engineering sample stage. In order to build an RF “intelligent manufacturing” resource platform, the company uses the advantages of the resource platform business model to give full play to the synergy of production lines, expand manufacturing capacity, and promote the construction of R&D, engineering and commercialization capabilities for advanced RF front-end processes and device technology. Currently, the production and research process for RF switches and low noise amplifiers has been basically defined. The company provides more possibilities for expanding more product categories and industry applications in the future by constructing advanced RF front-end chips and modules, and the advanced architecture is highly adaptable to terminals.
Profit forecasting and investment advice. The company's 24-26 EPS is estimated to be 2.25, 2.86, and 3.82 yuan/share, respectively. Referring to the company's long-term growth and comparable company valuation, the company will be given 55x PE in 2024, corresponding to a reasonable value of 123.48 yuan/share, giving it a “buy” rating.
Risk warning. Industry prosperity fell short of expectations; industry competition was fierce; gross margin fell short of expectations; progress of new products fell short of expectations.