Novosense(SH:688052) Huachuang Securities·2024-04-29 13:31Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 126.3 CNY per share, compared to the current price of 95.03 CNY [1]. Core Insights - The company's revenue showed a sequential improvement, with new product launches expected to drive future growth. The revenue for 2023 was 1.311 billion CNY, down 21.52% year-on-year, while the gross margin was 38.59%, a decrease of 11.42 percentage points [2]. - In Q1 2024, the company reported revenue of 362 million CNY, which is a 23.04% year-on-year decline but a 16.89% increase quarter-on-quarter. The gross margin for this quarter was 32.00%, down 13.31 percentage points year-on-year but up 1.41 percentage points quarter-on-quarter [2]. - The company is a leader in the domestic automotive isolation chip market, with a growing product portfolio and improved performance driving market share gains. The automotive electronics revenue accounted for 30.95% of total revenue in 2023, an increase of 7.82 percentage points year-on-year [2]. - The company maintains a high level of R&D investment, with 41.95% of Q1 2024 revenue allocated to R&D. This investment supports the development of new products, including integrated isolation comparators and solid-state relays, which have received recognition from automotive and industrial clients [2]. - The report adjusts the net profit forecast for 2024-2025 from 44 million CNY and 227 million CNY to -177 million CNY and 72 million CNY, respectively, while introducing a 2026 net profit forecast of 239 million CNY [2]. Financial Summary - Total revenue for 2023 was 1.311 billion CNY, with a projected increase to 1.8 billion CNY in 2024, representing a year-on-year growth rate of 37.3% [3]. - The net profit for 2023 was -305 million CNY, with expectations of -177 million CNY in 2024, and a return to profitability with a projected net profit of 239 million CNY in 2026 [3]. - The earnings per share (EPS) for 2023 was -2.14 CNY, with forecasts of -1.24 CNY in 2024, 0.51 CNY in 2025, and 1.67 CNY in 2026 [3].