JCET(SH:600584) Zhongyuan Securities·2024-04-28 03:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% relative to the CSI 300 index within the next six months [17]. Core Insights - The company reported a revenue of 29.66 billion yuan in 2023, a decrease of 12.15% year-on-year, with a net profit of 1.47 billion yuan, down 54.48% year-on-year. However, in Q1 2024, revenue increased to 6.84 billion yuan, up 16.75% year-on-year, and net profit rose to 135 million yuan, up 23.01% year-on-year [2][3]. - The company is focusing on optimizing its business structure and advancing high-performance packaging technology, particularly in the automotive electronics sector, which has shown significant growth [3][7]. - The company plans to acquire 80% of Shengdie Semiconductor for approximately 624 million USD to strengthen its advanced memory packaging and testing capabilities [7]. Summary by Sections Market Data - Closing price: 24.31 yuan - One-year high/low: 35.55/20.96 yuan - Market capitalization: 43.49 billion yuan - Price-to-book ratio: 1.66 [1]. Financial Performance - 2023 revenue: 29.66 billion yuan, down 12.15% year-on-year - 2023 net profit: 1.47 billion yuan, down 54.48% year-on-year - Q1 2024 revenue: 6.84 billion yuan, up 16.75% year-on-year - Q1 2024 net profit: 135 million yuan, up 23.01% year-on-year [2][3]. Business Strategy - The company is shifting focus from consumer electronics to high-growth sectors such as automotive electronics, high-performance computing, and 5G communications [3][7]. - The automotive electronics segment grew by 68% in revenue, exceeding 300 million USD in 2023 [3]. Technology Development - The company is advancing its high-performance packaging technology, particularly the XDFOI Chiplet series, which is now in stable mass production and is expected to benefit from the rapid development of AI and computing power upgrades [3][7]. - The expected global investment in AI is projected to reach 423.6 billion USD by 2027, with a compound annual growth rate of 26.9% over the next five years [7]. Earnings Forecast - Projected revenues for 2024-2026 are 33.26 billion, 37.68 billion, and 41.81 billion yuan, respectively - Projected net profits for the same period are 2.07 billion, 2.68 billion, and 3.30 billion yuan, respectively [8][15].