JCET(SH:600584) Huajin Securities·2024-04-21 12:01Investment Rating - The investment rating for the company is maintained at "Buy" with a rating of A [1][2]. Core Insights - The company achieved record high revenue in Q4 2023, with a year-on-year growth of over 60% in automotive-related business. The total revenue for 2023 was 29.66 billion yuan, with a net profit attributable to shareholders of 1.47 billion yuan [1]. - The company continues to innovate in high-performance advanced packaging, with over two-thirds of its revenue coming from this area in 2023. The automotive electronics business saw a 68% year-on-year revenue increase [1][2]. - The company is focusing on key application areas such as high-performance computing, communications, and automotive electronics, with R&D investment reaching 1.44 billion yuan in 2023, a 9.7% increase year-on-year [1][2]. Financial Performance - The company's revenue and net profit are expected to grow in the coming years, with projected revenues of 33.07 billion yuan, 38.30 billion yuan, and 41.31 billion yuan for 2024, 2025, and 2026 respectively, reflecting growth rates of 11.5%, 15.8%, and 7.9% [2][3]. - The net profit attributable to shareholders is projected to be 2.40 billion yuan, 3.00 billion yuan, and 3.51 billion yuan for the same years, with growth rates of 63.4%, 25.1%, and 16.8% respectively [2][3]. - The company's gross margin is expected to improve from 13.7% in 2023 to 16.6% by 2026, indicating a positive trend in profitability [3]. Market Position and Strategy - The company is enhancing its capabilities in providing comprehensive solutions for application scenarios and is actively building production capacity in high-end communications, industrial electronics, and third-generation semiconductors [1][2]. - The company is also developing a flagship factory for automotive-grade chip manufacturing in Shanghai, which is expected to accelerate its growth in the automotive electronics sector [1][2]. - The introduction of the XDFOI™ product series is anticipated to meet the growing demand for advanced packaging in markets such as computing, storage, and automotive [2].