Demand for terminals was weak, and the company's performance in the first three quarters was under pressure. From January to September 2023, the company achieved revenue of 813 million yuan, -44.63% year-on-year, and realized net profit of 16 million yuan, -94.11% year-on-year.
Among them, signal chain revenue was 649 million yuan, or -37.33%; power management revenue was 161 million yuan, -62.94% year over year. Looking at a single quarter, 2023Q3 achieved revenue of 201 million yuan, -57.25% year-on-year, -33.98%; net profit of 0.02 billion yuan, -94.71% year-on-year, and -82.19% month-on-month.
Due to product price and structural adjustments, the company's gross margin declined. From January to September 2023, the company achieved gross profit margin of 53.58%, y-4.93pct; net profit margin was 2.01%, year-on-year -16.85pct. Looking at a single quarter, the gross margin of 2023Q3 company was 50.02%, y-8.88pct, month-on-month, -1.59pct; the company's net profit margin was 1.10%, -7.80pct, y-2.98 pct month-on-month.
Signal chain advantage products continue to be iterated, and special products have been launched for some markets. The company has iterated on some linear products and launched relatively specialized products in response to market segmentation needs, such as operational amplifiers for high-speed photoelectric conversion of lidar, and operational amplifiers for signal amplification for leakage detection and charge sensors. Furthermore, the company is actively promoting research and development of related AFE products. In terms of interfaces, various types of isolation materials have been introduced, such as isolation sampling chips for servo and variable frequency control systems, and the CAN series product matrix for industrial and vehicle regulations continues to improve.
A lot of progress has been made in the power supply product line, and the reserve of power supply products for vehicle regulations continues to be consolidated. In 2023, the company mass-produced a variety of DCDC switching power supply products and industrial PMIC products; launched ultra-low noise, ultra-high PSRR linear voltage regulator products for the security and inspection markets, high-precision, low-temperature drift coefficient voltage reference chips for test and measurement, industrial instruments, data acquisition, and medical equipment, and automotive-grade push-pull transformer driver chips TPM650xQ series.
MCU products have entered the engineering sample verification stage and are expected to develop collaboratively with simulation products. In May 2023, the company's first MCU product was successfully released and entered the engineering sample verification stage. The company's MCU products are mainly positioned in the industrial and automotive markets. Early products will first enter the pan-industrial market and gradually expand into the automotive market. Differentiated competition will be sought in product definition and R&D. Products will be developed around vertical applications with high performance requirements in various aspects such as chip performance, integration, power consumption, and digital-analog mixing in the two major markets mentioned above, and will focus on products that are strongly coupled with the company's simulation products in terms of technology and customer needs.
Profit forecast: We expect the company's net profit for 2023/2024/2025 to be 0.5/172/337 million yuan, respectively, and 402/116/59 times the PE stock price corresponding to October 27, respectively, maintaining the “buy” rating.
Risk warning: New product development falls short of expectations, vehicle regulation expansion falls short of expectations, and downstream demand continues to weaken.