FHM(SZ:300613) Haitong Securities·2024-04-29 08:32Investment Rating - The report maintains an "Outperform" rating for the company [6][3]. Core Views - The company is a leading player in the security chip sector, providing a comprehensive range of video processing chip products from front-end to back-end. The company is actively expanding into automotive electronics and AI applications, which are expected to drive new growth engines [3][16]. - The company reported a revenue of 1.822 billion yuan in 2023, a year-over-year decrease of 13.65%, and a net profit of 252 million yuan, down 36.58% year-over-year. However, the fourth quarter of 2023 showed a revenue increase of 21.68% year-over-year [2][3]. Financial Performance - The company’s revenue is projected to recover, with estimates of 2.137 billion yuan in 2024, 2.446 billion yuan in 2025, and 2.680 billion yuan in 2026, reflecting a year-over-year growth of 17.3%, 14.5%, and 9.6% respectively [11][17]. - The earnings per share (EPS) are expected to be 1.72 yuan in 2024, 1.91 yuan in 2025, and 1.95 yuan in 2026, indicating a recovery trend after a dip in 2023 [3][11]. Market Position and Strategy - The company has established a strong competitive advantage in the professional video processing SoC field, with an expanding market share among key clients. The product line includes high-performance chips that support intelligent features and low power consumption [16][3]. - In the smart IoT market, the company has integrated various modules such as image signal processing and intelligent video analysis, enhancing its product offerings in security applications [16][3]. Valuation - Based on comparable company valuations, the report assigns a price-to-earnings (PE) ratio of 20-25 times for 2024, leading to a target price range of 34.40 to 43.00 yuan [3][11].