Incidents:
On April 30, the company released its 2023 report and 2024 quarterly report. In 2023, the company achieved operating income of 472 million yuan, an increase of 7.06%; realized net profit attributable to shareholders of listed companies was 30.1535 million yuan, a year-on-year decrease of 42.67%; achieved a gross profit margin of 28.79% from the main business, a decrease of 3.96 pct over the same period last year; and achieved operating income of 94.6749 million yuan in the first quarter of 2024, an increase of 18.26% year on year.
Comment:
Light sensing products have entered many mobile phone customers and are expected to become the company's new growth curve. In 2023, signal chain products achieved a breakthrough of 0 to 1, reaching 10.2762 million yuan in the first quarter of 2024 and 11.012,200 yuan in 2023, with a gross margin of 58.45%. Through self-developed optoelectronic processes and coating technology, the company has achieved major breakthroughs in core fields such as high sensitivity, high accuracy, and wide dynamic range, and has made significant progress in a number of signal chain optical sensing products, including ambient light sensing, proximity sensing, skin recognition sensing, environmental and proximity sensing, and optical displacement sensing. At present, in-ear detection sensors and narrow-slit three-in-one sensors have all entered mass production. The polarized light crown chip is the first high-precision optical tracking sensor in the industry that integrates rotation and compression detection functions for use in smartwatches, and has already begun large-scale delivery to well-known customers in the industry. The company's optical sensing products have strong profitability, obvious product performance advantages, and a wide range of downstream applications. 2024 will bring new growth momentum to the company.
The ecosystem of wireless charging products continues to be rich, and product iterative upgrades are growing rapidly. In 2023, wireless charging products achieved revenue of 210 million yuan, an increase of 64.06% over the previous year. With the rapid development of domestic new energy vehicles, in-vehicle wireless charging will become an important application scenario for wireless charging, which is expected to spread rapidly and promote the development of wireless charging habits among consumers. In addition, in addition to high-end phones such as folding screen phones, full-screen phones, and AI phones, which are equipped with wireless charging as standard, some mid-range and low-end phones have also begun to be equipped with wireless charging functions, which will all drive an increase in demand for wireless charging products. The company continues to improve the full range of 5W-100W wireless charging receivers and transmitters, and pioneered the launch of 80W wireless charging receiver chips with process innovation and technological iteration, which will continue to benefit from the increase in demand for wireless charging chips.
Investment advice: Give a “buy” rating. With the recovery of the downstream consumer electronics industry and the diversification of wireless charging chip applications and the iterative upgrading of optical sensing chip technology, we are optimistic about the investment opportunities brought by the company's continued release of wireless charging and optical sensing products. In 2024-2026, the company is expected to achieve revenue of 649/8.12/1,008 million yuan, net profit to mother of 0.58/1.01/132 million yuan, corresponding PE 56.18/32.19/24.59 times, respectively.
Risk warning: R&D investment progress falls short of expectations; competition in the wireless charging chip industry intensifies