JINGJIA MICRO(SZ:300474) Soochow Securities·2024-04-30 11:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is accelerating its layout in AI computing power while awaiting a recovery in its main business [1] - The company's performance in 2023 was under pressure due to downstream market conditions, with a significant decline in revenue and net profit [2][3] - The company is increasing its R&D investment and has shown strong operating cash flow performance [3] - The launch of high-performance AI computing modules and systems is expected to enhance the company's market presence in AI applications [3] - Despite challenges in specialized and chip businesses, the company remains a leader in domestic graphics display chips [3] Financial Performance Summary - In 2023, the company achieved total revenue of 713.25 million yuan, a year-on-year decrease of 38.19% [2] - The net profit attributable to the parent company was 59.68 million yuan, down 79.35% year-on-year [2] - For Q1 2024, the company reported revenue of 108 million yuan, a year-on-year increase of 66.27% [2] - The company’s R&D expense ratio was 46.44% in 2023, up 19.37 percentage points year-on-year [3] - Operating cash flow for 2023 was 264 million yuan, an increase of 188.87% year-on-year [3] Earnings Forecast and Valuation - The forecast for net profit attributable to the parent company for 2024 is adjusted to 254.66 million yuan, with a new forecast for 2026 set at 517.42 million yuan [3] - The company’s P/E ratio is projected to decrease from 537.47 in 2023 to 61.99 in 2026 [2][9]