Hefei Chipmore Technology (SH:688352) Huajin Securities·2024-02-20 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected investment return exceeding 15% over the next six months compared to the CSI 300 index [6][9]. Core Views - The company has shown steady growth in annual performance, with the Hefei factory officially commencing mass production, leveraging the advantages of the Hefei display industry cluster [9]. - In 2023, the company achieved revenue of 1.629 billion yuan, a year-on-year increase of 23.71%, and a net profit attributable to shareholders of 370 million yuan, up 22.10% year-on-year [9]. - The demand for non-display chips, such as display driver chips and power management chips, has rebounded, alongside the company's continuous expansion of packaging and testing capacity [9]. - The global display driver chip market is expected to recover, with a projected 4% year-on-year increase in shipments in 2024, reaching 7.63 billion units [9]. Financial Data and Valuation - Revenue Forecast: The company’s revenue is projected to grow from 1.629 billion yuan in 2023 to 2.445 billion yuan in 2025, with growth rates of 23.7%, 25.1%, and 20.0% respectively [3][12]. - Net Profit Forecast: The net profit attributable to shareholders is expected to increase from 370 million yuan in 2023 to 600 million yuan in 2025, with growth rates of 22.1%, 29.8%, and 24.9% respectively [3][12]. - Profitability Metrics: The gross margin is forecasted to improve from 35.9% in 2023 to 39.0% in 2025, while the net margin is expected to remain stable around 22.7% to 24.6% [3][12]. - Valuation Ratios: The P/E ratio is projected to decrease from 33.5 in 2023 to 20.7 in 2025, indicating an improving valuation as earnings grow [3][12].