OmniVision Integrated Circuits Group(SH:603501) Guoyuan Securities·2024-04-30 06:32Investment Rating - The report maintains a "Buy" rating for the company with a target price of 125.46 CNY per share, indicating an expected price increase of over 20% in the next six months [3][14]. Core Views - The company reported a revenue of 21.02 billion CNY in 2023, a year-on-year increase of 4.69%, while the net profit attributable to shareholders was 556 million CNY, down 43.89% year-on-year. The gross margin was 21.76% and the net margin was 2.59% [2][6]. - In Q4 2023, the company achieved a revenue of 5.939 billion CNY, a year-on-year increase of 26.49%, with a net profit of 187 million CNY, up 116.15% year-on-year [2][6]. - In Q1 2024, the company reported a revenue of 5.644 billion CNY, a year-on-year increase of 30.18%, and a net profit of 558 million CNY, up 180.5% year-on-year [2][6]. Summary by Relevant Sections Smartphone Sector - The company benefited from a gradual recovery in consumer electronics demand in the second half of 2023, leading to a significant increase in smartphone CIS revenue, which reached 7.779 billion CNY, up 44.13% year-on-year. The introduction of new 50MP products is expected to enhance the company's product structure and market position [2][6][7]. Automotive Electronics Sector - The automotive sector saw a revenue of 4.547 billion CNY in 2023, a year-on-year increase of 25.15%, driven by the growing trend of electric and intelligent vehicles. The company is expanding its automotive chip offerings and has acquired a new team to enhance its capabilities in this area [2][6][7]. Touch and Display Business - The touch and display business experienced a decline of 14.97% year-on-year due to reduced demand for smartphone LCD-TDDI. However, the company managed to increase its chip shipment volume by 65.33% year-on-year, indicating a gain in market share despite price pressures [2][6][7]. Financial Forecast - The company is projected to achieve net profits of 2.728 billion CNY, 4.333 billion CNY, and 5.872 billion CNY for 2024, 2025, and 2026, respectively, reflecting significant growth rates of 390.94%, 58.86%, and 35.51% year-on-year [3][6].