Lontium(SH:688486) Tebon Securities·2024-04-19 10:31Investment Rating - The report maintains a "Buy" rating for Longxin Co., Ltd. (688486.SH) [5][12] Core Views - Longxin Co., Ltd. has demonstrated robust growth in its performance, particularly in the automotive electronics sector, which is seen as a second growth curve for the company [3][5] - The company achieved a revenue of 104 million yuan in Q1 2024, representing a year-on-year increase of 101.95%, and a net profit of 31 million yuan, up 324.85% year-on-year [3][14] - The report highlights the company's strategic focus on expanding its product offerings in high-definition video processing and automotive electronics, which are expected to drive future growth [4][15] Financial Performance Summary - For 2024, the company is projected to achieve revenues of 477 million yuan, 683 million yuan in 2025, and 1.022 billion yuan in 2026, with corresponding net profits of 150 million yuan, 220 million yuan, and 335 million yuan respectively [5][8] - The gross margin is expected to improve from 54.0% in 2023 to 59.1% by 2026, indicating enhanced profitability [8][14] - The company reported a significant increase in its operating income and net profit for 2023, with revenues of 323 million yuan and a net profit of 103 million yuan, reflecting a year-on-year growth of 34.12% and 48.47% respectively [14][21] Product and Market Expansion - Longxin Co., Ltd. is actively expanding its product lines, particularly in the automotive electronics sector, with multiple chips already in mass production for well-known domestic and international automotive companies [4][15] - The company has established a wholly-owned subsidiary in Singapore to enhance its international market presence and supply chain capabilities [15]