USC(SH:688403) Shanghai Securities·2024-03-05 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [5][14] Core Views - The company's performance in 2023 met expectations, with revenue of 1.238 billion yuan (up 31.78% year-on-year) and a net profit of 196 million yuan (up 10.47% year-on-year) [9] - The company is expected to benefit from the gradual release of new production capacity, which is anticipated to drive stable growth in performance [9] - The demand in the DDIC industry chain is gradually recovering, with significant increases in global shipments of large-sized LCD panels and expected growth in smartphone shipments in 2024 [9] - The company has initiated a share repurchase plan, reflecting confidence in its future development and long-term value [9] Financial Summary - Revenue is projected to grow from 940 million yuan in 2022 to 1.586 billion yuan in 2025, with a compound annual growth rate (CAGR) of 18.1% from 2022 to 2025 [7][11] - Net profit is expected to increase from 177 million yuan in 2022 to 301 million yuan in 2025, with a CAGR of 26.3% [7][11] - Earnings per share (EPS) is forecasted to rise from 0.21 yuan in 2022 to 0.36 yuan in 2025 [11] - The company's gross margin is projected to improve from 28.7% in 2022 to 29.4% in 2025 [7][11]