SKYWORTHDT(SZ:000810) Soochow Securities·2024-03-23 16:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - Weak consumer demand has suppressed performance, but the company has won multiple gateway project bids for 2024. In 2023, the smart terminal business generated revenue of 7.863 billion yuan, a year-on-year decline of 17.91%, primarily due to insufficient market demand and price declines. However, the company maintains a leading market share and coverage, having won several collective procurement projects for set-top boxes and gateways in 2023. The company is expected to recover growth in the smart terminal business in 2024 [1][2] - The company has begun to implement productized AI application solutions and expand overseas sales of XR products. It has accumulated various algorithm technologies and is actively developing new products with AIGC capabilities. The company has also customized XR products for major overseas clients in markets such as Japan, the United States, South Korea, India, and Brazil, which are expected to contribute additional growth to the smart terminal business [2] - The automotive display business has seen rapid growth, with revenue of 982 million yuan in 2023, a year-on-year increase of 216.29%. The small and medium-sized display module business generated revenue of 1.098 billion yuan, a year-on-year decline of 26.89%. The company expects to continue reducing losses in this segment in 2024 [9] - The company is positioned as a leader in the smart terminal industry and is expected to benefit from the trend towards high-definition upgrades and AI empowerment. The forecast for the company's net profit attributable to shareholders for 2024-2025 has been adjusted to 800 million yuan and 950 million yuan, representing year-on-year growth of 34% and 18%, respectively [10] Financial Summary - In 2023, the company achieved total revenue of 10.627 billion yuan, a year-on-year decline of 11.50%, and a net profit attributable to shareholders of 602 million yuan, a year-on-year decline of 26.85%. The earnings per share (EPS) for 2023 was 0.52 yuan [10] - The company's gross margin for 2023 was 16.75%, a decrease of 0.9 percentage points year-on-year, primarily due to a decline in the gross margin of the professional display business [19] - The financial forecast indicates total revenue of 12.768 billion yuan for 2024, with a projected net profit of 804 million yuan, and an EPS of 0.70 yuan [10][22]