Espressif Systems(SH:688018) GF SECURITIES·2024-04-30 03:02Investment Rating - The report assigns a "Buy" rating to the company, with a target price of 130.30 CNY per share, indicating a potential upside from the current price of 105.15 CNY [24]. Core Insights - The company reported a significant year-on-year profit increase in Q1 2024, with revenue reaching 387 million CNY, up 21.71% year-on-year, and a net profit of 53.92 million CNY, up 73.43% year-on-year [21]. - The chip business revenue share has increased, contributing to an overall improvement in gross margin, with the comprehensive gross margin rising to 41.93% [21]. - New product lines, particularly the ESP32-C3 and ESP32-C2, are experiencing rapid growth, and the company anticipates further growth from the upcoming ESP32-H2 and ESP32-C6 products [21]. Financial Summary - Revenue for 2022 was 1,271 million CNY, with a projected increase to 1,825 million CNY in 2024, reflecting a growth rate of 27.3% [23]. - The net profit for 2022 was 97 million CNY, expected to rise to 191 million CNY by 2024, indicating a growth rate of 40.5% [23]. - Earnings per share (EPS) are projected to grow from 1.21 CNY in 2022 to 2.37 CNY in 2024 [23].