KONKA GROUP(SZ:000016) Xinda Securities·2024-04-10 16:00Investment Rating - The report assigns a rating of "Hold" for the company, indicating that the stock price is expected to fluctuate within ±5% of the benchmark index [25]. Core Views - The company is focusing on consumer electronics and semiconductor businesses while gradually exiting non-core operations such as trading and environmental services. Adjustments in product structure and sales strategies for color TVs and white goods are expected to stabilize revenue and profit contributions in the future [5][18]. - The semiconductor segment is concentrating on storage and optoelectronic sectors, achieving certain results in areas like massive transfer and MiniLED direct display. The company has developed multiple customer samples and small-scale sales in the MicroLED chip and massive transfer sectors [5]. Financial Summary - In 2023, the company reported total revenue of 17.85 billion yuan, a year-on-year decrease of 39.71%, with a net loss attributable to shareholders of 2.16 billion yuan. The fourth quarter revenue was 2.97 billion yuan, down 40.69% year-on-year, with a net loss of 1.45 billion yuan [1]. - The company’s gross margin improved slightly to 3.92% in 2023, up 1.16 percentage points year-on-year, while the fourth quarter gross margin was 4.76%, an increase of 0.81 percentage points year-on-year [1]. - The company’s operating cash flow turned positive in 2023, reaching 553 million yuan, compared to a negative 528 million yuan in 2022, primarily due to a significant decrease in inventory levels [1][7]. - Revenue projections for 2024-2026 are estimated at 20.48 billion yuan, 22.06 billion yuan, and 23.46 billion yuan, respectively, with year-on-year growth rates of 14.7%, 7.7%, and 6.4%. The net profit attributable to shareholders is projected to be -760 million yuan, -304 million yuan, and 48 million yuan for the same years [2][6].