TZTEK(SH:688003) Huaan Securities·2024-04-29 13:30Investment Rating - The investment rating for the company is "Buy" (maintained) [8] Core Views - The company achieved significant progress in the smart driving sector with its Journey5 chip-based autonomous driving domain controller products, securing development projects with major manufacturers such as GAC and SAIC in 2023 [1] - The company has adjusted its revenue forecasts for 2024-2026 to 1.961 billion, 2.328 billion, and 2.655 billion yuan respectively, down from previous estimates of 2.490 billion and 3.120 billion yuan for 2024-2025 due to slower-than-expected recovery in consumer electronics and delays in the photovoltaic industry [1] - The net profit forecasts for the same period are adjusted to 262 million, 315 million, and 386 million yuan, with diluted EPS projected at 1.36, 1.64, and 2.01 yuan respectively [1] Financial Performance Summary - In 2023, the company reported revenue of 1.648 billion yuan, a year-on-year increase of 3.7%, and a net profit of 215 million yuan, up 41.5% year-on-year [18] - The gross margin for 2023 was 41.7%, with a projected increase to 42.2% in 2024 [18] - The company’s return on equity (ROE) is expected to rise from 11.2% in 2023 to 15.1% by 2026 [18] - The price-to-earnings (P/E) ratio is projected to decrease from 32.80 in 2023 to 18.28 in 2026, indicating potential valuation improvement [18]