Shannon Semi(SZ:300475) Huaxin Securities·2024-05-05 13:30Investment Rating - The report maintains a rating of "Accumulate" for the company [5][22]. Core Views - The company experienced a revenue decline of 18.19% in 2023, with a total revenue of 11.268 billion yuan, but achieved a net profit of 378 million yuan, reflecting a year-on-year increase of 20.29% [5]. - In Q1 2024, the company reported a revenue of 2.303 billion yuan, a significant year-on-year growth of 46.86%, although the net profit decreased by 83.49% to 14 million yuan [5]. - The company is focusing on new product development in storage modules, aiming to create a new growth curve through a "distribution + product" strategy [5][6]. - The stock price has increased by 193.45% year-on-year, with a current market capitalization of 16.9 billion yuan [5]. Financial Forecast - The company’s revenue is projected to reach 15.556 billion yuan in 2024, 17.822 billion yuan in 2025, and 20.321 billion yuan in 2026, with growth rates of 38.1%, 14.6%, and 14.0% respectively [3][22]. - The diluted earnings per share (EPS) are expected to be 0.85 yuan in 2024, 1.01 yuan in 2025, and 1.15 yuan in 2026 [3][22]. - The return on equity (ROE) is forecasted to be 13.6% in 2024, 14.9% in 2025, and 15.7% in 2026 [3][22]. Key Investment Points - The recovery in the storage industry is driving demand for storage devices, particularly in mobile, PC, and server applications, contributing to the company's revenue growth [5]. - The company has optimized its equity structure and introduced an employee stock incentive plan, reflecting its commitment to transformation [5][6]. - The company is developing high-end storage products, including eSSD and DRAM modules, to enhance its market position [5].