The company disclosed its 2023 annual report, and gross margin continued to improve in the 23Q4 single quarter. The company's revenue for 23 years was 3663 billion yuan, YoY +35.39%; net profit to mother was 911 million yuan, YoY +11.36%; gross margin for the whole year was 37.51%, YoY 2.80pct. Looking at a single quarter, 23Q4's revenue was 1,044 million yuan, YoY +25.62%, QoQ +12.2%; net profit to mother was 255 million yuan, YoY +10.92%, QoQ +10.53%, gross margin of 40.47%, QoQ +3.88pct.
Various industry segments have achieved steady growth, and overseas business has grown significantly. By business, the company's new energy industry revenue in '23 was 2.56 billion yuan, YoY +48.09%, of which IGBT modules equipped more than 2 million NEVs, and wind and solar storage products had achieved full power coverage; the revenue of the industrial control industry was 1,279 million yuan, YoY +15.64%; the revenue of white power and other industries was 203 million yuan, YoY +69.48%. At the overseas business level, the subsidiary Star Europe achieved revenue of 311 million yuan, YoY +226.66%, while the rest of the export business achieved revenue of 77 million yuan and YoY+ 70.88%.
Looking ahead to 2024, overseas business & silicon carbide are expected to inject strong impetus into the company's growth. In terms of overseas business, the company's automotive-grade IGBT modules have begun to be delivered in large quantities at Tier 1 in Europe, and several new fixed sites have been added. The seventh-generation IGBT modules have also been installed in batches at overseas power plants such as North America. In terms of silicon carbide, batch shipments of products for various vehicle models equipped with autonomous SiC MOSFET chips have begun, and Adachi Semiconductor, a joint venture with Deep Blue Motors, will also begin producing silicon carbide modules this year. As the company continues to break through in overseas markets and the company's early layout in the silicon carbide field gradually enters the cash out period under the 800V fast charging trend, the company is expected to maintain a rapid growth trend.
Profit forecasting and investment advice. The company's 24-26 EPS is expected to be 6.56, 8.38, and 10.15 yuan/share, respectively. Referring to comparable company valuation levels, considering that the company continues to achieve breakthroughs in the silicon carbide field and has broad room for future growth, the company will be given a PE valuation of 35 times in 2024, with a reasonable value of 229.93 yuan/share, maintaining a “buy” rating? Risk warning. New product development falls short of expected risks, downstream demand weakens risks, and industry competition increases risks.