Core views:
23 years of steady growth in performance and stable profitability. Nanxin Technology released its 2023 annual report. The company achieved revenue of 1.78 billion yuan, YoY +36.87%, realized net profit of 261 million yuan, YoY +6.15%, achieved net profit of 251 million yuan after deduction of non-return to mother, and YoY +6.54%. The semiconductor industry faced heavy pressure in 2023, but the company achieved steady growth in performance with advantages such as technological innovation, product development, and customer barriers. The gross margin for 23 years was 42.30%, YoY -0.74pct, and profitability remained stable. Looking at a single quarter, 23Q4 achieved revenue of 574 million yuan, YoY +124%, QoQ +0.05%, net profit to mother of 81 million yuan, YoY +179.31%, which was basically the same from month to month.
Deeply laid out in the field of automotive electronics, the market performance was outstanding. The company achieved revenue of 31 million yuan in the field of automotive electronics applications, YoY +89.02%, and introduced products to many well-known leading customers in the industry. The company has moved from in-vehicle wireless wired charging to leading automotive manufacturers, continuously expanding the layout of new categories and carrying out product layout planning in the fields of automotive instruments, smart cockpits, ADAS and BMS.
In 2023, the company's USB and wireless charging solutions achieved large-scale mass production on the client; new products such as high-performance DC-DC power chips, HSD chips, and e-Fuse chips achieved large-scale sample delivery on the client, and some customers have already entered the targeted design stage of the project.
The leading position of charge pumps continues to stabilize, smartphone power management chips cover the entire link, and the value of stand-alone machines continues to increase. The company's mobile phone wired charging chips continue to launch products with higher integration and higher performance, which can achieve up to 300W fast charging power, further maintaining the leading position in the industry.
Driven by application scenarios, the company has achieved full coverage of wired charging, wireless charging, screen driver chips, and lithium battery protection chips.
Profit forecasting and investment advice. The company is expected to achieve revenue of 2,302 billion yuan and EPS of 0.87 yuan/share in 2024. Considering comparable company valuations, the company will be given 55 times PE in 24 years, corresponding to a reasonable value of 47.89 yuan/share, giving it a “buy” rating.
Risk warning. Product development fell short of expectations; product application areas were concentrated; market competition intensified.