WINGTECH(SH:600745) Guohai Securities·2024-04-24 23:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1][7] Core Views - The company reported a revenue of 61.213 billion yuan in 2023, a year-on-year increase of 5.40%, but a decline in net profit attributable to shareholders by 2.77 billion yuan [3][4] - The semiconductor business, particularly in automotive applications, accounted for 62.8% of total revenue, with a significant increase in the average value of semiconductor usage per vehicle from $9 in 2022 to $11.3 in 2023, representing a growth of 25.6% [4][5] - The company is expanding its product integration business, with a revenue of 124.2 billion yuan in Q1 2024, a year-on-year increase of 20.71% [5][6] Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 61.213 billion yuan, with a net profit of 1.181 billion yuan, down from the previous year [3][4] - For Q4 2023, the revenue was 16.801 billion yuan, showing a year-on-year growth of 5.05% and a quarter-on-quarter increase of 10.49% [3] - In Q1 2024, the revenue was 16.247 billion yuan, a year-on-year increase of 12.62%, but the net profit decreased by 68.82% year-on-year [3][4] Semiconductor Business - The semiconductor business generated 15.226 billion yuan in revenue in 2023, a decline of 4.85% year-on-year, with a gross margin of 38.59% [4] - The company increased its R&D investment in the semiconductor sector to 1.634 billion yuan in 2023, a growth of 37.2% [4][5] - The average number of semiconductor components used in new energy vehicles increased from 600 to 1000, a growth of 66.7% [4] Product Integration Business - The product integration business reported a revenue of 44.315 billion yuan in 2023, an increase of 11.99% year-on-year, despite a net loss of 4.47 billion yuan [5][6] - The company is diversifying its product offerings beyond mobile phones to include tablets, laptops, IoT, home appliances, and automotive electronics [5][6] Future Outlook - The company is expected to achieve revenues of 68.178 billion yuan, 77.236 billion yuan, and 88.558 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits projected at 2.303 billion yuan, 2.769 billion yuan, and 3.645 billion yuan [6][7] - The company is well-positioned to benefit from the trends in electric vehicles and AI applications, which are anticipated to drive stable growth [5][6]