Ingenic(SZ:300223) Huachuang Securities·2024-04-26 09:32Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 69.5 CNY, compared to the current price of 60.60 CNY [2][3]. Core Views - The consumer market demand is recovering, and the industry market inventory is being successfully reduced. The company’s revenue for 2023 was 4.531 billion CNY, a year-on-year decrease of 16.28%, with a net profit of 537 million CNY, down 31.93% year-on-year [3][6]. - In Q1 2024, the company reported revenue of 1.007 billion CNY, a year-on-year decrease of 5.80%, and a net profit of 87 million CNY, down 23.90% year-on-year [3][6]. - The company’s sales revenue from consumer market products, particularly computing chips, increased by 43.91% year-on-year to 1.108 billion CNY in 2023, while sales from industry market products, such as storage chips, decreased by 28.19% year-on-year [3][6]. Financial Summary - The company’s total revenue for 2023 was 4.531 billion CNY, with a projected revenue of 5.354 billion CNY for 2024, reflecting an 18.2% year-on-year growth [6][7]. - The net profit for 2023 was 537 million CNY, with projections of 669 million CNY for 2024, indicating a 24.5% year-on-year increase [6][7]. - The earnings per share (EPS) for 2023 was 1.12 CNY, expected to rise to 1.39 CNY in 2024 [6][7]. Strategic Initiatives - The company is implementing a "Computing + Storage + Analog" strategy to enhance its competitive edge. In 2023, it launched new products in computing chips and began mass production of 8G LPDDR4 storage chips [3][6]. - The company is also focusing on the development of next-generation DRAM technology to meet the increasing demand for higher capacity products in the automotive sector [3][6].