JINGJIA MICRO(SZ:300474)2024-07-14 05:30Investment Rating - The report assigns an "Outperform" rating to the company, with a target price of RMB 105.41, reflecting a 40% upside potential from the current price [4][11]. Core Insights - The company has launched a 2024 equity incentive plan to motivate employees, granting 950,000 shares at RMB 55.52 per share, with performance targets set for revenue growth of at least 11% in 2024 and 25% in 2025 based on 2023 revenue [3][11]. - The company is focusing on AI by introducing the Jinghong series of high-performance intelligent computing modules, which support various precision operations and aim to enhance its product line in AI training and inference [3][11]. - The company reported a significant revenue increase of 66% year-on-year in Q1 2024, with total revenue reaching RMB 108 million, although it still reported a net loss of RMB 12 million [3][11]. Financial Performance Summary - In 2023, the company generated revenue of RMB 713 million, a decrease of 38% year-on-year, and a net profit of RMB 60 million, down 79% year-on-year [3][4]. - Revenue projections for 2024-2026 are RMB 1.21 billion, RMB 1.58 billion, and RMB 1.97 billion, with net profits expected to be RMB 225 million, RMB 336 million, and RMB 471 million respectively [4][11]. - The report forecasts revenue growth rates of 50%, 20%, and 20% for the graphics display control field, and 80%, 40%, and 30% for the specialized radar field over the next three years [4][11]. Business Segment Analysis - The graphics display control segment is expected to recover with revenue growth of 50% in 2024, while the specialized radar segment is projected to grow by 80% in the same year [6][11]. - Other main business segments are anticipated to see a revenue increase of 135% in 2024, indicating a strong recovery trajectory [6][11]. Valuation Metrics - The report provides a price-to-sales (PS) ratio of 40 times for 2024, with earnings per share (EPS) projected at RMB 0.49, RMB 0.73, and RMB 1.03 for 2024, 2025, and 2026 respectively [4][11]. - The company’s financial metrics indicate a gross margin of 59% for 2024, with a gradual improvement expected in subsequent years [5][8].