JCET(SH:600584) Huachuang Securities·2024-04-23 08:02Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 32.9 CNY [2][3]. Core Views - The company's performance has shown continuous improvement on a quarterly basis, with a focus on high-quality development and sustainable profitability. The revenue for 2023 was 29.661 billion CNY, a year-on-year decrease of 12.15%, while the net profit attributable to the parent company was 1.471 billion CNY, down 54.48% year-on-year [2][3]. - The company is optimizing its business structure and expanding into high-growth product areas such as HPC, Chiplet, and automotive electronics, which is expected to enhance its long-term growth potential [3]. - The customer base is increasingly diversified, with over 70% of revenue coming from outside mainland China, benefiting from domestic substitution opportunities. The revenue distribution across application areas in 2023 was 43.9% for communications, 25.2% for consumer electronics, 14.2% for computing, 8.8% for industrial and medical, and 7.9% for automotive, indicating a strategic shift towards high-value markets [3]. Financial Summary - For 2023, the total revenue was 29.661 billion CNY, with a year-on-year growth rate of -12.1%. The net profit attributable to the parent company was 1.471 billion CNY, with a year-on-year growth rate of -54.5% [4]. - The earnings per share (EPS) for 2023 was 0.82 CNY, with projected EPS of 1.17 CNY for 2024, 1.73 CNY for 2025, and 2.24 CNY for 2026 [4]. - The company is expected to see a recovery in net profit, with forecasts adjusted to 2.1 billion CNY for 2024 and 3.087 billion CNY for 2025, reflecting a year-on-year growth of 42.8% and 47.0% respectively [3][4].