Investment Rating - The report maintains a "Hold" rating for the company [1] Core Views - The company is experiencing short-term pressure on performance due to macroeconomic factors and a lack of recovery in downstream demand, with a focus on high-end product volume growth in the future [10][29] - The company is actively expanding its overseas business, having successfully developed stable orders from Japanese clients [10] - The company is increasing its R&D investment, which rose by 33.2% year-on-year to 140 million yuan in 2023, enhancing its internal design verification capabilities [10] Financial Performance Summary - In 2023, the company achieved revenue of 2.07 billion yuan, a year-on-year decrease of 11.8%, and a net profit attributable to shareholders of 140 million yuan, down 26.3% year-on-year [10][21] - For Q1 2024, the company reported revenue of 410 million yuan, a decline of 19.5% year-on-year, and a net profit of 34.19 million yuan, down 38.1% year-on-year [10] - The main revenue source remains switch products, accounting for 80.9% of total revenue, with a revenue of 1.68 billion yuan, down 19.9% year-on-year [10] Revenue and Profit Forecast - Revenue growth is expected to rebound with a forecasted annual growth rate of 20% from 2024 to 2026, with gross margins improving to 18%, 19%, and 20% respectively [2][10] - EPS is projected to be 2.61 yuan, 3.49 yuan, and 4.82 yuan for 2024, 2025, and 2026 respectively, corresponding to PE ratios of 30, 23, and 16 [10][21] Product Development and Market Position - The company is making significant advancements in high-end data center switches, with products like the 2.0T/8.0T switches entering mass production [10] - The company is also expanding its product matrix in IoT gateways, particularly in edge computing 4G/5G gateways, which are seeing substantial growth [10]
业绩短期承压，国产替代深化