Amlogic(688099) 华创证券·2024-06-30 05:31Investment Rating - Strong Buy (首次覆盖) [1][8] Core Views - The company is a leading domestic smart audio-video SoC enterprise with a diversified product portfolio including smart set-top box SoC, smart TV SoC, AI audio-video terminal SoC, Wi-Fi chips, and automotive electronics [1] - The company's performance is rebounding with Q1 2024 revenue reaching 1.378 billion yuan, up 33% YoY, and net profit attributable to shareholders reaching 128 million yuan, up 319% YoY [1] - The company is expected to achieve net profits of 738 million yuan, 1.004 billion yuan, and 1.304 billion yuan in 2024-2026, with a target price of 79.42 yuan based on a 45x PE ratio for 2024 [1][8] Business Segments Smart Set-Top Box SoC - The company dominates the domestic market and is expanding overseas, with significant growth potential driven by IPTV/OTT penetration and policy-driven ultra-HD upgrades [1][7] - Overseas competition is optimizing, and the company's market share is expected to increase [1][7] Smart TV SoC - Domestic smart TV penetration is increasing, and 8K adoption is expected to open up demand for ultra-HD TV chips [1][7] - Overseas smart TV penetration still has room for growth, and the company is expected to expand its market share alongside domestic TV manufacturers [1][7] AI Audio-Video SoC - AI-driven growth is opening new opportunities, with AIGC expected to drive growth in set-top boxes and smart speakers [1][7] - The company is focusing on smart speakers and expanding its product matrix [7][59] Wi-Fi Chips - Wi-Fi 6 performance is significantly improved, and the company has launched Wi-Fi 6 chips, with plans to introduce new tri-mode combo products in 2024 [1][7] Automotive Electronics - The company's automotive entertainment chips have been adopted by several well-known car manufacturers, with mass production and commercialization achieved in 2023 [1][7] Financial Projections - Revenue is expected to grow from 5.371 billion yuan in 2023 to 9.482 billion yuan in 2026, with a CAGR of 18.4% [2] - Net profit attributable to shareholders is expected to grow from 498 million yuan in 2023 to 1.304 billion yuan in 2026, with a CAGR of 29.9% [2] Industry Trends - The global smart TV market is growing, with significant penetration opportunities in overseas markets [7][47] - The smart speaker market is under pressure due to macroeconomic factors, but AIGC is expected to drive future growth [7][59] - The Wi-Fi chip market is transitioning to Wi-Fi 6, with significant growth potential [7][23] - The automotive electronics market is expanding, with increasing demand for smart cockpit SoC chips [7][24]