Jiangsu JieJie Microelectronics (SZ:300623) Dongxing Securities·2024-04-26 02:00Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook compared to market benchmarks [4]. Core Views - The company reported a strong performance in Q1 2024, with revenue of 520 million yuan, representing a year-on-year growth of 28.80%, and a net profit of 91.95 million yuan, up 189.51% year-on-year [1][2]. - The significant increase in revenue and profit is attributed to the strong demand from downstream customers and the successful turnaround of its subsidiary, which achieved profitability [2][3]. - The global power semiconductor market is expected to grow by approximately 20% in 2024, reaching a scale of 52.2 billion USD, which bodes well for the company's growth prospects [4]. Financial Performance - In Q1 2024, the company achieved a gross margin of 38.02%, an increase of 9.07 percentage points year-on-year, and a net profit margin of 18.10% [2][4]. - The company's operating cash flow improved significantly, with a net cash flow from operating activities of 111 million yuan, up 221.36% year-on-year [2]. - The forecast for net profit for 2024-2026 is 333 million yuan, 519 million yuan, and 793 million yuan, respectively, with corresponding PE ratios of 49X, 32X, and 21X [4][7]. Product Development and Market Position - The company is actively expanding its product lines, focusing on high-end rectifiers and new power semiconductor devices such as MOSFETs, IGBTs, silicon carbide, and gallium nitride [3]. - The company aims to enhance its market share in the power semiconductor sector by developing advanced technologies and expanding its application fields, particularly in electric vehicles, photovoltaics, and wind power [3][4].