GUOXIN MICRO(002049) 国元证券·2024-05-06 01:00Investment Rating - The report upgrades the investment rating to "Buy" [1][10]. Core Views - The company continues to enhance its product lineup, which supports its long-term investment value despite short-term pressures [2][3]. - The company's revenue for Q1 2024 was 1.141 billion yuan, a decrease of 26.16% year-on-year, with net profit attributable to shareholders at 307 million yuan, down 47.44% year-on-year [2][3]. - The company has a strong focus on R&D, with an annual investment of 1.633 billion yuan in 2023, representing 21.58% of its revenue, and has secured 149 patent authorizations [4][10]. Financial Performance Summary - In 2023, the company achieved a revenue of 7.565 billion yuan, a year-on-year increase of 6.26%, while net profit decreased by 3.84% to 2.531 billion yuan [4][11]. - The net cash flow from operating activities was 1.772 billion yuan, an increase of 2.63% year-on-year [4][11]. - As of the end of 2023, total assets were 16.865 billion yuan, a decrease of 3.82% from the beginning of the year, while equity attributable to shareholders increased by 2.55% to 11.954 billion yuan [2][4]. Product Development and Market Position - The company has successfully launched new product lines, including special Nand Flash and RF-SOC products, which have received positive market feedback [6][10]. - The company is recognized as one of the industry leaders in various product categories, with ongoing upgrades in network and interface products [6][10]. - The company is actively expanding its product spectrum to ensure sustainable future growth, including the establishment of a new production base for ultra-miniature quartz crystal resonators with a total investment of 355 million yuan [10][11]. Profit Forecast - The profit forecast for 2024-2026 estimates net profits of 2.793 billion yuan, 3.274 billion yuan, and 3.943 billion yuan, respectively, with corresponding EPS of 3.29 yuan, 3.85 yuan, and 4.64 yuan [10][11]. - The current price-to-earnings ratios are projected to be 17.80 times, 15.18 times, and 12.61 times for the respective years [10][11].