Novosense(SH:688052) Huachuang Securities·2024-06-24 05:31Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 144.5 CNY per share, compared to the current price of 117.60 CNY [2][3]. Core Views - The company aims to enhance its competitiveness in the magnetic sensor field by acquiring 79.31% of Shanghai Maguan Microelectronics Co., Ltd. for 793.12 million CNY, which will make Maguan a subsidiary [2][3]. - Maguan specializes in mixed-signal chip development, focusing on magnetic sensors, and has established a leading market share in niche areas such as magnetic encoders and switches [3]. - The acquisition is expected to enrich the company's product portfolio in magnetic sensors and increase its market share [3]. - The core team of Maguan has extensive experience from leading global firms, which will aid in integrating R&D resources and enhancing technological capabilities [3]. - The company maintains high R&D investment levels, which supports product development and opens up long-term growth opportunities [3]. - Revenue forecasts for 2024-2026 have been adjusted upwards, with expected revenues of 18.72 billion CNY, 24.64 billion CNY, and 30.91 billion CNY, respectively [3][4]. - The net profit forecasts for the same period have also been revised, with expected figures of 1.52 billion CNY, 0.81 billion CNY, and 2.56 billion CNY [3][4]. Financial Summary - Total revenue for 2023 is reported at 1.311 billion CNY, with a projected increase to 1.872 billion CNY in 2024, reflecting a year-on-year growth rate of 42.8% [4]. - The company reported a net loss of 305 million CNY in 2023, with expectations of narrowing losses to 152 million CNY in 2024 and turning profitable by 2025 [4]. - The earnings per share (EPS) is expected to improve from -2.14 CNY in 2023 to 1.79 CNY by 2026 [4].