Giantec Semiconductor(688123) 国泰君安·2024-03-11 16:00Investment Rating - The report maintains a rating of "Buy" for the company, with a target price set at 82.74 CNY, down from a previous forecast of 114.54 CNY [12][13]. Core Views - The company is expected to benefit from the gradual improvement in downstream inventory and the continuous increase in DDR5 penetration rates [12][13]. - The report indicates that the company's performance in 2023 was below expectations, with a significant decline in revenue and net profit due to reduced purchasing and production cuts by memory module manufacturers [12][13]. - Despite the challenges faced in 2023, there are signs of recovery in the fourth quarter, with a notable increase in shipments and revenue [12][13]. Summary by Sections Financial Performance - The company reported a revenue of 704 million CNY in 2023, a year-on-year decrease of 28.17%, and a net profit of 99 million CNY, down 72.08% [12][13]. - The earnings per share (EPS) for 2023 is projected at 0.62 CNY, with a forecasted EPS of 2.62 CNY for 2025 [12][13]. - The report highlights a significant drop in operating profit and net profit margins, with a net profit margin of 14.0% expected in 2024 [12][13]. Market Outlook - The report notes that the server industry is showing signs of gradual recovery, with Intel expected to launch new products in 2024 that could further enhance DDR5 penetration [12][13]. - The anticipated recovery in demand and inventory destocking in the industry is expected to support the company's performance moving forward [12][13]. Valuation Metrics - The report provides a comparison of the company's valuation metrics with peers, indicating a PE ratio of 42x for 2024 [12][13]. - The average PE ratio for comparable companies is noted to be 41.66 for 2024, suggesting that the company is positioned competitively within its sector [12][13].