Chipsea(SH:688595) EBSCN·2024-06-26 06:01Investment Rating - The report maintains a "Buy" rating for the company [7][9]. Core Views - The company, Xinhai Technology, is experiencing a recovery in downstream demand, with its PC-related business becoming a new growth point [4]. - In 2023, the company reported a revenue of 433 million yuan, a year-on-year decline of 29.91%, and a net profit attributable to shareholders of -143 million yuan, indicating a loss [4]. - In Q1 2024, the company achieved a revenue of 151 million yuan, a year-on-year increase of 145.42%, and a sequential growth of 1.51%, with a reduced net loss of -35 million yuan [4]. Summary by Sections Business Overview - Xinhai Technology is a comprehensive signal chain chip design company focusing on high-precision ADC, high-performance MCU, measurement algorithms, and IoT solutions [4]. - The company has a leading advantage in the analog signal chain and MCU sectors, with a rich product portfolio and market expansion [4]. Product Development and Market Performance - The company has launched a series of new products in the BMS and PC fields, which began to ramp up in 2023, with significant sales in Q1 2024 [5]. - The revenue from EC and PD series chips, used in computers and peripherals, increased by approximately 170% year-on-year [5]. - Traditional MCU products and health measurement products are also seeing a steady recovery in demand due to the resurgence of consumer electronics [5]. Technological Advancements - Xinhai Technology has made significant breakthroughs in core technologies, including high-precision ADC design and high-reliability MCU design [6]. - The company has introduced the first domestic high-precision 24-bit Sigma-Delta ADC and a 32-bit MCU with built-in USB PD3.0 fast charging protocol, achieving high integration and safety standards [6]. Financial Forecast and Valuation - The report has adjusted the net profit forecasts for 2024 and 2025 to -50 million yuan and 27 million yuan, respectively, with a new forecast for 2026 introduced [7]. - Projected revenues for 2024-2026 are 681 million yuan, 939 million yuan, and 1.232 billion yuan, with net profits of -50 million yuan, 27 million yuan, and 113 million yuan [7]. - The current market capitalization corresponds to a PE ratio of 169 for 2024 and 40 for 2025 [7].