消费电子业务逆势增长，发力通讯和汽车业务前景广阔

Investment Rating - The report maintains a Buy-A rating for Luxshare Precision with a 6-month target price of 37.20 CNY, representing a 34.4% upside from the current price of 27.67 CNY [4] Core Views - Luxshare Precision's consumer electronics business demonstrated resilience in 2023, with revenue growing 9.75% YoY to 197.18 billion CNY despite a challenging market environment [1] - The company's communications and automotive businesses are emerging as key growth drivers, with revenues increasing 13.28% and 50.46% YoY respectively in 2023 [2][3] - AI technology adoption in consumer electronics is expected to drive industry recovery, with global smartphone shipments growing 8% YoY in Q4 2023 [1] Financial Performance - In 2023, Luxshare achieved 231.91 billion CNY in revenue (+8.35% YoY) and 10.95 billion CNY in net profit (+19.53% YoY) [1] - Q1 2024 results showed continued growth with 52.41 billion CNY in revenue (+4.93% YoY) and 2.47 billion CNY in net profit (+22.45% YoY) [1] - The company forecasts 5.23-5.45 billion CNY in H1 2024 net profit, representing 20-25% YoY growth [1] Business Segments Consumer Electronics - Revenue reached 197.18 billion CNY in 2023 (+9.75% YoY), driven by AI-enabled devices and market recovery [1] - The segment benefited from AI integration in smartphones, PCs, and wearables, with global smartphone shipments rebounding to 319 million units in Q4 2023 [1] Communications Business - Revenue grew to 14.54 billion CNY in 2023 (+13.28% YoY), driven by demand for high-speed connectivity solutions [2] - The company is actively participating in setting standards for next-gen 800G and 1.6T data center connectivity [2] Automotive Business - Revenue surged to 9.25 billion CNY in 2023 (+50.46% YoY), supported by partnerships with leading automakers [3] - The company is well-positioned in automotive electronics, including ADAS systems, with L2+ penetration reaching 55.3% in China's NEV market [3] Financial Projections - Revenue is expected to grow at a CAGR of 14.25% from 2024-2026, reaching 358.24 billion CNY by 2026 [8] - Net profit is projected to grow at a CAGR of 23.12% during the same period, reaching 20.46 billion CNY by 2026 [8] - The company's ROE is forecast to remain stable around 20%, with ROIC improving to 47.4% by 2026 [9] Valuation - The stock trades at 18.1x 2023 PE and 3.5x PB, below its historical average [4] - The target price of 37.20 CNY implies 20x 2024 PE, considered attractive given the growth prospects [8]