ThunderSoft(SZ:300496) Huachuang Securities·2024-03-31 16:00Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expectation to outperform the benchmark index by over 20% in the next six months [5][15]. Core Views - The company reported a revenue of 5.242 billion yuan in 2023, a year-on-year decrease of 3.73%, and a net profit attributable to shareholders of 466 million yuan, down 39.36% year-on-year [1][2]. - The automotive business continues to grow rapidly, achieving a revenue of 2.337 billion yuan, a year-on-year increase of 30.34%, driven by the trend of automotive intelligence [2]. - The company is focusing on AI and edge computing technologies to enhance its product offerings and expand its market presence in various intelligent applications [2]. Financial Summary - Total revenue for 2023 was 5.242 billion yuan, with a projected revenue of 6.308 billion yuan for 2024, reflecting a growth rate of 20.3% [3][10]. - The net profit for 2023 was 466 million yuan, with forecasts of 602 million yuan for 2024, indicating a growth rate of 29.2% [3][10]. - The company’s operating cash flow increased by 51.89% year-on-year to 755 million yuan, primarily due to increased sales collections [2][10]. Business Segments - The automotive segment is highlighted as a key growth area, with significant advancements in intelligent driving software contributing to its revenue growth [2]. - The smart IoT segment saw a revenue decline of 15.45% year-on-year, but there was a recovery in the second half of 2023 [2]. - The smart software segment experienced a revenue drop of 25.12% year-on-year, attributed to the maturity of the smartphone market [2]. Valuation and Price Target - The target price for the company's stock is set at 65.5 yuan per share, based on a projected PE ratio of 50 for 2024 [5][10]. - The current stock price is 51.27 yuan, indicating potential upside based on the target price [5].