The company released its 2023 annual report, achieving operating income of 373 million yuan, an increase of 27.34% over the previous year; net loss attributable to shareholders of listed companies of 102 million yuan.
The quarterly revenue side reached a record high, and gross margin increased significantly. The company's product sales volume increased dramatically in the second half of 2023, and revenue for the third and fourth quarters successively reached record highs, reaching 103.5558 million yuan and 113.5894 million yuan respectively. With the gradual recovery in consumer market demand in the second half of 2023 and the gradual launch of the company's high-margin new products, the company's product gross margin in a single quarter has reversed its continuous decline. Product gross margin increased 1.62 percentage points and 9.84 percentage points month-on-month respectively in the third and fourth quarters of 2023, and the recovery momentum is obvious.
The promotion of new products is effective, and MEMS conforms to future manufacturing trends. After nearly five years of development and improvement, the company's acceptance of MEMS products continues to increase. In some fields of products with high smoke volume, high safety, and compliance with new regulations, the company's unique digital products have gained advantages that are difficult to achieve with traditional products in client applications, thus achieving mass shipment to brand customers and continuing to grow. The barometer has been recognized by leading domestic customers in the smartwatch market and has established good cooperative relationships, achieved batch delivery, and gradually promoted to other customers and ODM markets. As the number of networked nodes continues to grow, the requirements for the number and degree of intelligence of smart sensors are also constantly increasing. In the future, new industries such as smart homes, metaverse VR/AR, industrial Internet, vehicle networking, smart cities, and humanoid robots will all bring a wider market space to the MEMS sensor industry. To this end, the company has set up a number of new directions. For example, the company launched a MEMS six-dimensional force\ torque sensor research and development project. In order to complete the product line, the company also simultaneously launched a research and development project for three-dimensional force\ torque sensors used for fingertip sensing in humanoid robots.
Profit forecasts and investment recommendations. We expect the company's corresponding EPS to be -0.44/0.19/0.43 yuan/share in 24-26, respectively. Considering the valuation level of comparable companies, the 24-year PS valuation range was 5.5-6.5 times, corresponding to a reasonable value range of 42.79 to 50.57 yuan, and a “superior to the market” rating was given.
Risk warning. Product market promotion fell short of expectations, new business expansion fell short of expectations, and market competition intensified.