Kiwi Instruments(SH:688045) China Post Securities·2024-04-30 15:30Investment Rating - The report maintains a "Buy" rating for the company [23]. Core Views - The downstream market is gradually recovering, leading to a restoration of profitability. In 2023, the company achieved revenue of 578 million yuan, a year-on-year increase of 10.01%, with annual sales volume growing by 26.72%. However, the net profit attributable to the parent company was -19 million yuan, a decline of 150.24%. The gross margin was 23.57%, down 4.39% year-on-year. In Q1 2024, the company reported revenue of 136 million yuan, a year-on-year increase of 2.48%, and net profit of 0.3 million yuan, marking a return to profitability, with a gross margin of 26.59%, up 4.15% year-on-year [7]. - The company is continuously increasing R&D investment and binding core technical personnel. In 2023, R&D expenses amounted to 159 million yuan, a year-on-year increase of 38.21%. By the end of 2023, the company had 268 R&D personnel, accounting for over 74% of the total workforce. The company has also granted stock incentives to core team members, with total share-based payment expenses of 20.78 million yuan in 2023. A new employee stock ownership plan was announced for 2024, with performance targets based on 2023 revenue, aiming for a 20% growth rate and a gross margin of no less than 25% [7]. - The company continues to innovate its product offerings and optimize its structure. In the AC-DC field, new products such as interleaved PFC and LLC have been launched, promoting the localization of high-power fast charging (up to 240W) and high-power power supplies (up to 3000W). In the DC-DC field, the company is developing high-current (above 8A) and high-voltage (above 60V) products, with a 100V high-voltage CMCOT architecture DC-DC product already tested and approved by customers. In the battery management chip sector, the company is developing BMSAFE chips for high-voltage applications (200-800V) and pursuing ISO26262 functional safety certification, targeting large energy storage systems and new energy vehicles. Additionally, the company has expanded its product lineup in amplifiers, converters, sensors, isolation chips, and interface chips, successfully sampling several signal chain products [7]. Financial Forecast and Key Indicators - The company is expected to achieve net profits attributable to the parent company of 30 million yuan, 60 million yuan, and 100 million yuan for the years 2024, 2025, and 2026, respectively [7]. - Revenue is projected to grow from 578 million yuan in 2023 to 716 million yuan in 2024, with growth rates of 10.01%, 23.84%, 27.91%, and 22.51% for the years 2023 to 2026 [15][16]. - The gross margin is expected to improve from 23.57% in 2023 to 27.4% in 2026, indicating a positive trend in profitability [15][16].