Zheng Quan Zhi Xing·2025-05-13 14:20Core Viewpoint - Company maintains a "buy" rating based on strong performance in 2024 and positive trends continuing into Q1 2025, with a focus on enhancing its product lines in DDR5 memory modules and automotive electronics [1][2]. Financial Performance - In 2024, the company achieved a revenue of 1.028 billion yuan, a year-on-year increase of 46.17%, and a net profit attributable to shareholders of 290 million yuan, up 189.23% [3]. - For Q1 2025, the company reported a revenue of 261 million yuan, a year-on-year increase of 5.6%, and a net profit of 99 million yuan, up 94.71% [3]. - The gross margin for 2024 was 54.81%, an increase of 8.22 percentage points, while the net profit margin was 28.23%, up 13.96 percentage points [3]. Product Growth - The DDR5 SPD product line saw significant sales growth due to increased penetration in the market and improved inventory levels among downstream memory module manufacturers [4]. - The automotive-grade EEPROM products successfully entered multiple leading automotive electronics Tier 1 suppliers, with sales and revenue experiencing rapid growth [4]. - The company is expanding its NOR Flash product offerings, with various capacities achieving mass production and passing reliability tests [4]. Market Dynamics - Despite differentiated demand across various downstream markets in 2025, the company’s strategic positioning in storage chips has mitigated the impact of declining sales in certain product categories [5]. - The company’s R&D investment reached 41 million yuan in Q1 2025, the highest level for the same period historically, aimed at enhancing core technology and product variety [5]. Valuation and Forecast - The company is expected to achieve revenues of 1.374 billion yuan, 1.719 billion yuan, and 2.049 billion yuan for 2025, 2026, and 2027 respectively, with net profits of 454 million yuan, 597 million yuan, and 714 million yuan [6]. - The projected price-to-earnings ratios for 2025, 2026, and 2027 are 26.7, 20.3, and 16.9 respectively, maintaining a "buy" rating [6].