AWINIC(SH:688798) Guoxin Securities·2024-04-13 16:00Investment Rating - The investment rating for the company is "Buy (Maintain)" [11][21]. Core Views - The company achieved a revenue of 2.53 billion yuan in 2023, representing a year-on-year growth of 21.1%, and turned a profit with a net profit of 51 million yuan [36][39]. - The company is expected to improve its profitability through quality enhancement and efficiency measures, with projected net profits of 90 million yuan, 250 million yuan, and 375 million yuan for 2024, 2025, and 2026 respectively [28][36]. - The company has launched several new products, which are anticipated to contribute positively to revenue growth in the coming years [36][40]. Revenue Breakdown - High-performance analog mixed-signal chips generated revenue of 1.26 billion yuan in 2023, a year-on-year increase of 11.5%, accounting for 50% of total revenue [23][41]. - Power management chips accounted for 36% of total revenue, with a revenue of 909 million yuan, reflecting a growth of 24.5% year-on-year [40][41]. - Signal chain chips saw a significant increase in revenue, doubling to 349 million yuan, which is 14% of total revenue [6][41]. Financial Metrics - The company's gross margin decreased to 24.85% in 2023, down 13.2 percentage points from the previous year, primarily due to price pressures from inventory reduction efforts [36][39]. - The research and development expense ratio decreased to 20.05% in 2023, down 8.5 percentage points year-on-year, with R&D expenses totaling 507 million yuan [12][43]. - Management expenses decreased by 4% to 153 million yuan, with a management expense ratio of 6.03% [27][43]. Future Projections - Revenue is projected to grow to 3.13 billion yuan in 2024, 3.76 billion yuan in 2025, and 4.42 billion yuan in 2026, with year-on-year growth rates of 23.7%, 20.1%, and 17.5% respectively [28][58]. - The company expects to gradually improve its gross margin, with projections of 26.51%, 28.14%, and 28.95% for 2024, 2025, and 2026 respectively [41][58]. - The projected earnings per share (EPS) are expected to be 0.39 yuan in 2024, 1.08 yuan in 2025, and 1.61 yuan in 2026 [58].