Sichuan Injet Electric (SZ:300820)2024-08-13 10:30Investment Rating - The report gives a "Buy" rating for the company, indicating a positive outlook for its future performance [1]. Core Insights - The company is a leading player in the industrial power supply sector in China, with a significant focus on semiconductor power supply business, which is expected to become a new growth driver [1][9]. - The semiconductor radio frequency power supply is entering a volume production phase, with a revenue growth rate of 69.35% year-on-year in 2023 [1][21]. - The company has announced a share buyback plan, reflecting confidence in its future prospects [1][17]. - The company has shown steady revenue growth, with a 37.99% increase in revenue in 2023, primarily driven by the photovoltaic and semiconductor sectors [1][21]. Summary by Sections Company Overview - The company was established in 1996 and listed on the Growth Enterprise Market in 2020, specializing in industrial power supply R&D and manufacturing [1][9]. - It has a stable and concentrated shareholding structure, with the chairman and CEO being the actual controllers [1][15]. Business Growth - The company's revenue is mainly derived from the photovoltaic and semiconductor industries, with a significant portion of its revenue coming from power control supplies [21]. - In 2023, the company achieved a revenue of 1.769 billion yuan, with a net profit of 431.42 million yuan, reflecting a year-on-year growth of 27.23% [2][21]. Semiconductor Market Dynamics - The semiconductor market is expected to grow significantly, with a forecasted increase in market size from $588.36 billion to $611.23 billion in 2024, representing a 16% year-on-year growth [35][36]. - The establishment of the "National Big Fund Phase III" aims to boost the semiconductor industry, enhancing domestic capabilities and supporting key technology development [39][40]. Financial Projections - The company forecasts net profits of 532 million yuan, 784 million yuan, and 861 million yuan for 2024, 2025, and 2026, respectively, with corresponding PE ratios of 18x, 13x, and 11x [1][2]. - The gross margin is expected to improve gradually, with projections of 38.02%, 42.36%, and 44.35% for the next three years [2][28].