Puran Co., Ltd. released its report for the first quarter of 2024: in the 2024Q1 single quarter, the company achieved revenue of 405 million, YOY+ 98.52%, and QOQ +12.50%; realized net profit of 50 million yuan, YOY +277.41%, and QOQ -5.66%; realized net profit without deduction of 62 million yuan, YOY +232.99%, and Q0Q +34.78%.
Key points of investment
Demand for downstream consumer electronics picked up, 2024Q1 revenue was the highest in a single quarter since launch
2024Q1 achieved revenue of 405 million, YOY +98.52%, QOQ +12.50%, the highest single-quarter revenue since listing; gross profit margin was 31.8%, YOY+9.64pct, QoQ+4.03pct, and profitability increased significantly. The main reasons for the increase in the company's performance were: (1) downstream demand for consumer electronics and other products gradually recovered, and the company's active strategy to expand market share was effective; the company's product shipments increased year on year, driving the company's revenue growth year on year, and the corresponding increase in gross profit; (2) sales, management and R&D expenses increased by 13.28% year on year, which was less than the increase in revenue, and the scale effect gradually appeared; (3) Asset impairment loss of 1614,900 yuan decreased year on year, increasing total profit. Looking forward to the future, as demand for downstream consumer electronics continues to recover and the company's layout in the automotive and industrial control fields continues to expand, and the product structure and customer structure are continuously optimized, the company's profitability will maintain an upward trend.
The NOR Flash high-capacity market is being introduced at an accelerated pace, and the EEPROM industrial control and automotive fields continue to advance
Throughout 2023, shipments of the company's NOR Flash product line reached a record high, with cumulative shipments exceeding 3 billion units. (1) In terms of NOR Flash products, ETOX NOR Flash products achieve mass production and shipment of 512 Mbit capacity products. In the future, we will continue to improve products through process R&D and design innovation, achieve the company's rapid introduction into the high-volume market, and continue to increase the company's market share in the NOR Flash field. Small and medium capacity NOR Flash automotive products have successively completed AEC-Q100 certification, and are mainly used in front-mounted car navigation, central control entertainment, etc. of some brand models. At the same time, the company will also gradually promote the full range of NOR Flash vehicle certification; (2) In terms of EEPROM products, the company will continue to promote the application of EEPROM products in industrial control and automotive fields. The share of industrial control applications has increased significantly, which has played a role in stabilizing the company's gross margin; automotive products have completed the AEC- Q100 Grade1 vehicle grade high reliability certification, and continue to expand to other domestic and foreign customers. Mass delivery to domestic and foreign customers has been achieved in applications such as body cameras, in-vehicle central control, and entertainment systems, and the share of automotive electronics in revenue has increased. At the same time, we will continue to promote vehicle certification for the full range of EEPROM products.
The “Storage+” product line continues to be rich, and MCU+ analog chips create a new growth pole
The company implements the “storage +” strategy, actively expands the field of microcontrollers and analog chips, and relies on the company's technical advantages and platform resources in the storage field to achieve higher added value and more diversified markets. (1) In terms of MCU products, the company lays out the ARM Cortex-M core series 32-bit general-purpose MCU products based on the advantages of leading technology, ultra-low power consumption and highly integrated in-house design, and has successively launched 12 series of more than 200 MCU chip products with ARM M0+ and ARM M4 cores, covering 55nm and 40nm process processes. The products are gradually introduced into many downstream application terminals such as consumer electronics and industrial control; (2) In the field of analog chips, as a VCM driver New entrants to the industry, relying on the product itself and the ability to collaborate with customer resources, have achieved mass shipments of two-in-one products with independent loop opening and storage, mainly used in camera modules (CCM). At the same time, VOIS and OIS optical image stabilization products have been developed based on storage, simulation, and sensor technology, all of which have been shipped in small quantities. The company's VCM Driver products can form a good synergy with EEPROM products, enhancing the company's competitive advantage and market share in the field of camera modules.
Profit forecasting
The company's revenue for 2024-2026 is estimated to be 1,527, 18.96 billion yuan, and 2,351 billion yuan, EPS 2.02, 3.26, and 4.39 yuan, respectively. The current stock price corresponds to PE 60.9, 37.6, and 28.0 times, respectively. As a leading manufacturer of non-volatile memory chips, the company has been deeply involved in the field of NOR Flash and EEPROM for many years. The “storage +” strategy continues to expand application fields, optimize product structure and customer structure, have broad development prospects, and maintain a “buy” investment rating.
Risk warning
Macroeconomic risks, risk of product development falling short of expectations, risk of increased industry competition, risk of downstream demand falling short of expectations.