Investment Rating - The report maintains a "Buy" rating for the company [5][14]. Core Views - The company has shown strong performance in its revenue and profit growth, with a 2023 revenue of 1.055 billion RMB, a year-on-year increase of 14.92%, and a net profit of 32 million RMB, up 31.52% [24][26]. - The semiconductor business, particularly in IGBT and SiC products, is expected to drive significant revenue growth, with a 105% increase in sales revenue to 81.45 million RMB in 2023 [26]. - The company is set to benefit from the acceleration of multiple ultra-high voltage direct current (UHVDC) projects, which will positively impact its revenue and performance from 2024 onwards [14][24]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 1.055 billion RMB, with a gross margin of 31.8%, an increase of 3.3 percentage points year-on-year [24]. - The net profit for 2023 was 32 million RMB, reflecting a growth of 31.52% [24]. Revenue Forecast - The company forecasts revenues of 1.593 billion RMB, 2.009 billion RMB, and 2.393 billion RMB for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 51%, 26%, and 19% [14][15]. - The expected net profits for the same years are 87 million RMB, 202 million RMB, and 243 million RMB, with growth rates of 174%, 134%, and 20% [14][15]. Market Position and Growth Drivers - The company is positioned to benefit from the increasing demand for clean energy transmission, particularly in wind, solar, and hydropower sectors [13][14]. - The introduction of new semiconductor products and the expansion of its customer base in high-demand sectors such as renewable energy and electric vehicles are key growth drivers [26]. Valuation Metrics - As of March 28, 2024, the stock price is 1.19 HKD, with corresponding price-to-sales (P/S) ratios of 1.21, 0.96, and 0.81 for the years 2024, 2025, and 2026, respectively [14][15]. - The expected earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 0.05 RMB, 0.12 RMB, and 0.15 RMB [14][15].
特高压项目放量在即，半导体业务高速增长