The company released the 2024 annual report and the 2025 quarterly report. The operation improved in the first quarter of 2024 and 2025, basic disk storage, MCU products continued to be stable, and the diversified product line was gradually improved, and the diversified product line was gradually improved to maintain the shareholding rating.
Key points supporting the rating
The company operated steadily in 2024, and 25Q1 revenue continued to grow year on year. The company achieved revenue of 7.356 billion yuan for the full year of 2024, +27.69% year over year, realized net profit of 1.103 billion yuan, +584.21% year over year, and realized net profit of 1.03 billion yuan without return to mother, +3660.79% year over year. 25Q1, benefiting from the country's stimulus package, etc., demand in the consumer sector was boosted; benefiting from AIPC and other terminals, the company's products achieved significant revenue and sales growth in the storage and computing field. In addition, the Netcom market also achieved good growth. The company achieved revenue of 1.909 billion yuan in revenue in 25Q1, +17.32% /month-on-month +11.88%, achieving net profit attributable to mother 0.235 billion yuan, +14.57% YoY /-13.24% month-on-month. 0.224 billion yuan, +21.83% YoY/-11.52% YoY. In terms of profitability, the company's gross profit margin in 2024 was 38%, +3.58pcts year on year, 14.99% net profit margin, +12.19pcts year on year, net interest rate of 14.01% without return to mother, +13.53pcts year on year.
Looking at a single quarter, the company achieved a gross profit margin of 37.44% in 2025Q1, -0.72pct/month-on-month +4.27pcts.
Actively explore the market with market share as the center. In 2024, the company actively sought market demand opportunities, and product shipments reached a new high, reaching 4.362 billion pieces, an increase of 39.72% over the previous year. 1) Flash memory products: NOR Flash products continue to grow in the fields of consumption, networking, computing, automobiles, etc., driving the overall shipment volume and revenue of this product line to achieve good year-on-year growth, and the overall shipping capacity reached a record high. SLC NAND Flash products have also achieved good year-on-year growth in revenue and shipments. At the same time, the market expansion effect of self-branded DRAM products is obvious, market share continues to increase, and shipments of DDR3L and DDR4 products have further increased. 2) MCU: The gradual recovery of the industrial market, driven by demand for energy, optical modules, etc., and a significant increase in demand in the fields of Netcom and computing, the company's MCU product revenue and shipment volume all achieved good year-on-year growth, and reached record highs in terms of shipment volume. 3) Sensors: The company's share in the mobile phone market continues to grow, and both revenue and shipment volume have achieved good year-on-year growth. At the same time, the company is actively developing new applications and other product types.
Actively embrace end-side AI and make steady progress in diversified business lines. 1) FLASH: Actively deploying AI glasses, AIPC and other application fields. Servers are actively cooperating with cloud manufacturers, the industrial sector grasps the trend of increasing capacity such as electricity meter upgrades, and is actively expanding markets such as Europe and Japan. The automotive sector cooperates with major domestic car companies, and it has been observed that medium- to high-capacity categories are showing a good demand trend. 2) Niche DRAM: Downstream consumer demand such as 25Q1 TV is good, and the industry is recovering moderately. The new product D4 8Gb has been well introduced in TV, industrial and other clients, and the new product is expected to grow rapidly as a new growth pillar for the niche DRAM sector. The customized storage business is progressing in an orderly manner in various end-side AI application scenarios such as mobile flagship phones, AIPC, automobiles, and robots. 3) MCU: Actively seize the opportunities of domestic substitution, adhere to the big customer strategy, continue to cultivate in the fields of photovoltaics, industrial control, white power, etc., and seize the direct and indirect benefits brought by end-side AI. 4) Simulation: The merger of Suzhou Saixin has been completed, and business integration between the two parties is being promoted. In the future, we will gradually complete key product numbers and downstream application areas of power management through two paths of internal incubation and epitaxial mergers and acquisitions based on our own product-customer matrices already built in MCU and storage.
valuations
Taking into account the company's positive business performance in 2024 and the first quarter of 2025, the basic disk storage and MCU products are expected to further open up the growth ceiling. We adjusted the profit forecast. The company is expected to achieve revenue of 9.204/11.144/13.49 billion yuan in 2025/2026/2027, respectively, and realized net profit of 1.595/2.041/2.527 billion yuan respectively, corresponding to 2025-2027 PE, respectively 54.3/42.4/34.3 times We are optimistic that the company's diversified businesses will work together to maintain an increase in holdings rating.
The main risks faced by ratings
The risk of price fluctuations in memory chips, risk of falling inventory prices, falling sales volume falling short of expectations, new product development falling short of expectations, and escalating international trade frictions.
