Investment Rating - The report maintains a BUY rating for the company with a target price under review [2][10]. Core Insights - The company is expected to see a recovery in gross profit margin (GPM) in FY24E driven by the recovery of the Android market, higher unit transaction rates (UTR), and an improved product mix [2]. - Non-smartphone components, particularly automotive and IoT, are anticipated to accelerate growth, contributing to overall revenue increases [10]. - The ultrasonic fingerprint module (FPM) segment is projected to turn profitable in FY24E, supported by rising average selling prices (ASP) and increased shipments [2]. Summary by Relevant Sections Earnings Summary - Management is optimistic about GPM recovery in FY24E, with smartphone CCM shipment growth projected at 5% YoY and high-end CCM sales mix expected to exceed 45% [2]. - Non-smartphone CCM is expected to grow significantly, with the sales mix reaching 12% in FY24E, driven by orders from Huawei and other tier-1 customers [2]. - The FPM segment is on track to achieve profitability, with shipments expected to reach 1 million units per month in 2H24E [2]. Financial Forecasts - Revenue is projected to increase from RMB 12,531 million in FY23A to RMB 14,794 million in FY24E, representing an 18.1% YoY growth [3]. - Net profit is expected to rise significantly from RMB 83.5 million in FY23A to RMB 385.6 million in FY24E, reflecting a 371.8% YoY growth [3]. - The company is trading at a P/E ratio of 11.9x for FY24E, which is attractive compared to its historical average of 18x [2][3]. Valuation - The report emphasizes the attractiveness of the stock at current trading multiples, suggesting potential upside driven by recovery in high-end Android and non-smartphone segments [10]. - The target price is currently under review, indicating ongoing assessment of market conditions and company performance [4].
丘钛科技：CMBI Corp Day takeaways: ASP/GPM upside driven by Android recovery and spec upgrade