Netac(SZ:300042) Great Wall Securities·2024-04-09 16:00Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% relative to the industry index within the next six months [26]. Core Insights - The company reported a significant decline in revenue and net profit for 2023, with revenue at 1,087.60 million yuan, down 38.63% year-on-year, and a net loss of 43.76 million yuan, a decrease of 170.44% year-on-year [2][8]. - The company is focusing on innovation and expanding its product categories in the storage sector, including the development of PCIe5.0 solid-state drives and high-performance memory products to meet market demands [3]. - The company has signed strategic cooperation agreements to establish a storage industry base in the Guangdong-Hong Kong-Macao Greater Bay Area, aiming to enhance the application of domestic high-performance data storage products [11]. Financial Performance Summary - For 2023, the company experienced a sharp decline in revenue and net profit, with Q4 revenue dropping to 54.03 million yuan, a year-on-year decrease of 89.01%, and a net loss of 6.96 million yuan, down 130.22% [8]. - The company's revenue from various segments, including flash memory control chips and mobile storage products, saw significant declines, with the highest drop being 71.44% in rental income [8]. - The company forecasts a recovery in net profit, projecting 53 million yuan for 2024, 105 million yuan for 2025, and 166 million yuan for 2026, with corresponding P/E ratios of 102, 51, and 32 [17].