Allwinner Technology (SZ:300458) Huajin Securities·2024-04-01 16:00Investment Rating - The investment rating for the company has been upgraded from "Hold-B" to "Buy-B" [2][8] Core Insights - The company is expected to achieve revenue of 3.515 billion yuan in 2026, with adjusted net profits for 2024 and 2025 being 180 million yuan and 371 million yuan respectively, and a projected net profit of 547 million yuan in 2026 [2] - The corresponding PE ratios for 2024, 2025, and 2026 are projected to be 67.8 times, 32.9 times, and 22.3 times respectively [2] - The current market capitalization is 12.218 billion yuan, with a PS ratio of approximately 5.35 times, which is lower than the average PS of 8.91 times over the past five years [2] - The demand recovery, platform upgrades, and the rise of edge AI present significant growth opportunities for the company [2] Financial Performance Summary - The company reported a revenue of 1.673 billion yuan in 2023, an increase of 10.5% year-on-year, while the net profit attributable to shareholders was 23 million yuan, a decrease of 89.1% year-on-year [3] - The projected revenues for 2024 and 2025 are 2.279 billion yuan and 2.844 billion yuan, representing year-on-year growth rates of 36.2% and 24.8% respectively [3] - The gross profit margin is expected to stabilize around 38% by 2026, with a net profit margin projected to reach 15.6% [3] - The company’s EPS is forecasted to increase from 0.04 yuan in 2023 to 0.87 yuan in 2026 [3] Market and Industry Context - The semiconductor industry is anticipated to recover, with a projected global market growth rate of 13.1% in 2024, reaching a record scale of 588.4 billion USD [8] - The company is actively investing in advanced chip research and development, focusing on self-developed analog and digital IP to enhance product competitiveness [8] - The rise of AI applications in mobile devices is expected to drive demand for edge computing solutions, which aligns with the company's strategic focus [8]