GalaxyCore (SH:688728) Ping An Securities·2024-05-06 02:30Investment Rating - The report maintains a "Recommendation" rating for the company [2][7] Core Views - The company has begun mass production and shipment of mid-to-high-end CIS products, leading to significant revenue growth in Q1 2024, with a 51.13% year-on-year increase [3][4] - Despite a challenging market environment in 2023, the company shows a clear recovery trend, with quarterly revenues improving from Q1 to Q4 [3][4] - The company has successfully developed a unique high-pixel single-chip integration technology, enhancing its competitive position in the high-pixel image sensor market [4][7] Financial Summary - In 2023, the company reported a revenue of 4.697 billion yuan, a decrease of 20.97% year-on-year, and a net profit of 48 million yuan, down 89.01% year-on-year [3][5] - For Q1 2024, the company achieved a revenue of 1.289 billion yuan, a year-on-year increase of 51.13%, and a net profit of 30 million yuan, up 123.35% year-on-year [3][5] - The company expects revenues to grow to 6.037 billion yuan in 2024, with a projected net profit of 147 million yuan, reflecting a significant recovery [5][11] Product Development - The company has successfully launched its 32 million pixel image sensor, which is expected to meet the demands of 5G mobile phone designs [4][7] - The introduction of a new 4K image sensor for non-mobile applications has also been noted, indicating diversification in product offerings [7] Market Position - The company is positioned as a key player in the domestic CIS market, focusing on upgrading its product line to capture the mid-to-high-end market segment [7] - The transition from a Fabless to a Fab-lite model is expected to enhance the company's R&D efficiency and market competitiveness [7]