SG Micro Corp(300661) 民生证券·2025-02-18 10:23Investment Rating - The report gives a "Buy" rating for the company, with a target price of 93.85 CNY, corresponding to a PE ratio of 91/63/44 for the years 2024-2026 [6][3]. Core Insights - Shengbang Co., Ltd. is a leading domestic analog IC company focusing on "power management + signal chain" products, with a product portfolio of over 5,200 items across 32 categories as of the end of 2023 [1][3]. - The company has shown strong revenue growth with a CAGR of 43.08% and a net profit CAGR of 56.23% from 2017 to 2022, although it faced a decline in 2023 due to industry cycle downturns. However, it is expected to recover in 2024 with a projected revenue growth of 29.96% and a net profit growth of 100.57% in the first three quarters [1][3][18]. - The analog chip industry is characterized by a long lifecycle and diverse product categories, which contribute to its relatively stable growth and lower cyclicality. The domestic market for analog chips is still in its early stages of development, with a self-sufficiency rate of less than 14% in 2023, indicating significant growth potential [2][3]. Summary by Sections Company Overview - Shengbang Co., Ltd. was established in 2007 and specializes in the design, research, and sales of analog chips, with applications in consumer electronics, communication devices, industrial control, and automotive electronics. The company has expanded its product lines significantly, focusing on both power management and signal chain products [11][13]. Industry Outlook - The analog chip industry is expected to see a bottoming out of the cycle, with recovery anticipated as downstream demand gradually improves. The report highlights that the leading company in the industry, Texas Instruments (TI), has shown signs of recovery in its gross margin, indicating a positive trend for the industry as a whole [2][3]. Financial Forecast - The financial projections for Shengbang Co., Ltd. indicate a revenue of 3,298 million CNY in 2024, with a growth rate of 26.1%, and a net profit of 486 million CNY, reflecting a growth rate of 73.1%. By 2026, the revenue is expected to reach 4,930 million CNY, with a net profit of 1,010 million CNY [5][3]. Product Lines - The company’s primary revenue source is its power management ICs, which accounted for 66.8% of total revenue in 2023. The report notes that the power management segment is expected to benefit from the growing demand in consumer electronics and the ongoing shift towards domestic alternatives [39][46]. Competitive Advantages - Shengbang Co., Ltd. has a strong R&D team with significant industry experience, which has led to a robust portfolio of patented technologies and products. The company has been actively involved in mergers and acquisitions to expand its product offerings and market reach [3][29][36].