occurrences
The company released its 2023 annual report. According to the announcement, the company achieved revenue of 21.021 billion yuan in 23, an increase of 4.69%; realized net profit of 556 million yuan, a year-on-year decrease of 43.89%; realized net profit withheld from non-mother of 138 million yuan, an increase of 43.70% over the previous year; gross profit margin of 21.76%, and a net profit margin of 2.59%.
In 24Q1, the company achieved revenue of 5.644 billion yuan in a single quarter, up 30.18% year on year and 4.97% month on month; achieved net profit of 558 million yuan, up 180.50% year on year and 198.40% month on month; realized net profit deducted from non-return mother in a single quarter of 566 million yuan, up 2476.81% year on year, up 6975% month on month; gross profit margin of 27.89% and net profit margin of 9.82%.
Downstream demand picked up, product structure was optimized, and the company's performance gradually recovered. As the consumer market picked up further, downstream customer demand grew. Along with the company's introduction of products in the high-end smartphone market and the continuous penetration of autonomous driving applications in the automobile market, the company achieved significant growth in 24Q1 revenue. At the same time, due to factors such as product structure optimization and cost control, the company's product gross margin gradually recovered, driving the company's profit growth.
Consumer side: Strong sales of new products in the smartphone market helped increase market share and continue to benefit from the smooth progress of downstream inventory removal and active adjustment of the company's product structure. The company's product revenue from the mobile phone market showed a marked improvement trend. The company's new image sensor products of 50 megapixel and above were successfully mass-produced and delivered in the third quarter of 2023, injecting new factors into the company's product revenue growth from the smartphone market. Product structure optimization helped the company steadily increase its product value and profitability. In the field of smartphone applications, the company's 50 megapixel and above products (including 64 megapixel, 100 million pixel, etc.) contributed more than 60% to revenue.
Automotive side: Demand in the automotive electronics market is growing, and the scale of shipments continues to rise. With advanced and compact automotive CIS solutions, the company has covered a wide range of automotive applications, including ADAS, cab interior monitoring, electronic rearview mirrors, dashboard cameras, rearview and panoramic images. In recent years, the excellent performance shown by the company's automotive CIS products has also helped the company to introduce more new design solutions. During the reporting period, the company achieved large-scale growth in sales revenue from the automobile market compared to the same period last year, and its market share increased rapidly.
Investment advice
We originally expected the company's net profit to be 1,234/26.09/3.419 billion yuan from 2023 to 2025, respectively. The profit forecast is now adjusted. The company's net profit for 2024 to 2026 is estimated to be 27.36/40.23/5.155 billion yuan, respectively, corresponding to PE of 46.49/31.61/24.67 times, maintaining a “gain” rating.
Risk warning
The risk that downstream demand falls short of expectations, market competition intensifies, and new product promotion falls short of expectations.