Chipown(SH:688508) Huachuang Securities·2024-04-29 04:32Investment Rating - The report maintains a "Strong Buy" rating for the company [8][15]. Core Views - The company achieved a revenue of 203 million yuan in Q1 2024, representing a year-on-year increase of 8.69% and a quarter-on-quarter increase of 1.46%. The gross margin was 36.74%, down 2.35 percentage points year-on-year but up 0.85 percentage points quarter-on-quarter. The net profit attributable to the parent company was 24 million yuan, up 16.24% year-on-year and turning profitable quarter-on-quarter. The net profit after deducting non-recurring items was 16 million yuan, up 41.98% year-on-year and also turning profitable quarter-on-quarter [8][9]. Financial Performance Summary - In Q1 2024, the company benefited from strong downstream demand, particularly in the home appliance sector, leading to a steady revenue growth. The company is expected to continue to benefit from the recovery in terminal demand and the expansion into new application areas such as energy storage and charging [9]. - The semiconductor industry is showing signs of recovery, with domestic PMIC manufacturers likely to experience a new growth phase. The report highlights that the inventory destocking phase for domestic analog chip companies is nearing its end, and policies promoting upgrades in the home appliance sector are expected to boost demand [9]. - The company is expanding its product offerings and application areas, with over 1,700 effective product models as of the 2023 annual report. The company is actively entering industrial and automotive sectors, with significant growth in its energy storage business, which saw a revenue increase of 108.33% year-on-year in 2023 [9]. - The report forecasts the company's net profit attributable to the parent company for 2024-2026 to be 81 million, 106 million, and 130 million yuan, respectively, with corresponding EPS of 0.62, 0.81, and 0.99 yuan. A target price of 37.0 yuan per share is set based on a 60 times PE ratio for 2024 [9][19].