Minsheng Securities·2024-02-07 16:00Investment Rating - The report maintains a "Recommended" rating for the company [2][3] Core Views - The company reported a Q4 2023 revenue of $1.678 billion, a 3.6% increase quarter-on-quarter, with a gross margin of 16.4%, down 3.4 percentage points. The net profit attributable to shareholders was $175 million, up 86.2% quarter-on-quarter [1] - For the full year 2023, the company expects a revenue of $6.322 billion, a 13.1% decrease year-on-year, and a net profit of $903 million, down 50.3% year-on-year, primarily due to a weak global semiconductor market and increased depreciation [1] - The smartphone business showed significant growth, with Q4 2023 revenue distribution by application being 30.2% for smartphones, 30.6% for computers and tablets, and 22.8% for consumer electronics [1] - The company is expanding its production capacity, with plans to add 340,000 12-inch wafer capacity per month over the next five to seven years [1] - The company expects Q1 2024 revenue to remain flat or grow by 2%, with a gross margin forecasted between 9% and 11% [1] - The long-term outlook for the semiconductor industry is positive, with a projected 16.8% growth in global semiconductor revenue in 2024 [1] Summary by Sections Financial Performance - Q4 2023 revenue: $1.678 billion, Q4 2023 net profit: $175 million, full year 2023 revenue: $6.322 billion, full year 2023 net profit: $903 million [1] - 2024 revenue estimates: 45,250 million, 52,259 million, and 62,354 million for 2023E, 2024E, and 2025E respectively [2] - 2024 net profit estimates: 4,823 million, 6,033 million, and 7,445 million for 2023E, 2024E, and 2025E respectively [2] Market Outlook - The semiconductor market is expected to decline by 10.9% in 2023 but is projected to recover with a 16.8% growth in 2024 [1] - The company aims to achieve revenue growth in line with industry averages, with a mid-single-digit percentage increase year-on-year [1] Investment Valuation - Projected PE ratios for 2023, 2024, and 2025 are 72, 58, and 47 respectively, while PB ratios are 2.5, 2.4, and 2.3 [2]