Amlogic(SH:688099) Minsheng Securities·2024-04-12 16:00Investment Rating - The report maintains a "Recommended" rating for the company [1][2]. Core Views - The company has shown a rapid recovery in performance, with a significant increase in net profit expected in Q1 2024, projected to grow by approximately 310.68% year-on-year [1]. - The diversified product strategy has yielded positive results, leading to a steady increase in market share and improved gross margins, with Q4 2023 gross margin at 39.08%, up by 8.62 percentage points [1]. - Continuous R&D efforts have led to successful product launches, including advancements in SoC chips and automotive electronics, which are expected to drive future growth [1]. - The company is expanding its customer base by providing comprehensive solutions across multiple platforms, enhancing customer loyalty and sustainable development [1]. Financial Summary - In 2023, the company achieved revenue of 5.371 billion yuan, a decrease of 3.14% year-on-year, while net profit attributable to shareholders was 498 million yuan, down 31.46% [1][2]. - For 2024, revenue is expected to reach approximately 6.439 billion yuan, representing a growth rate of 19.9%, with net profit projected at 726 million yuan, an increase of 45.8% [2][7]. - The company’s PE ratio is forecasted to decrease from 41 in 2023 to 28 in 2024, indicating improved valuation as earnings recover [2][7]. R&D and Product Development - In 2023, the company invested 1.283 billion yuan in R&D, an increase of 8.18%, and expanded its R&D team by 99 personnel [1]. - Key product developments include the S series 8K SoC chips, T series smart TV chips, and new Wi-Fi and Bluetooth chips, which are set to enter mass production and commercialization [1]. - The automotive electronics segment is also expanding, with chips now penetrating mid-range vehicles, indicating a broadening market reach [1]. Customer Base and Market Strategy - The company has established a strong customer base, including major players like Xiaomi, Alibaba, and Google, through its SoC solutions [1]. - The strategy of providing optimized system solutions based on various open platforms is expected to facilitate rapid market deployment for clients [1].