JINGJIA MICRO(SZ:300474) Changjiang Securities·2024-05-06 02:32Investment Rating - The investment rating for the company is "Buy" and is maintained [4]. Core Views - The company achieved a revenue of 713 million yuan in 2023, a year-on-year decrease of 38.19%. The net profit attributable to the parent company was 60 million yuan, down 79.35% year-on-year. The non-recurring net profit was 23 million yuan, a decrease of 91.16% year-on-year. The gross margin was 60.32%, down 4.7 percentage points year-on-year, and the net profit margin attributable to the parent company was 8.4%, down 16.7 percentage points year-on-year [5][6]. - In Q1 2024, the company reported a revenue of 108 million yuan, an increase of 66.27% year-on-year. The net profit attributable to the parent company was a loss of 12 million yuan, with a narrowing loss compared to the previous year. The non-recurring net profit was a loss of 17 million yuan, also narrowing year-on-year. The gross margin was 62.91%, an increase of 5.2 percentage points year-on-year [5][6]. Business Analysis - In 2023, the company's revenue from the graphics display control sector, small specialized radar products, and chip products were 465 million yuan, 132 million yuan, and 101 million yuan, respectively, with year-on-year growth rates of -28.62%, -42.66%, and -61.13%. The gross margins for these segments were 65.07%, 59.32%, and 44.29%, with year-on-year changes of -5.23 percentage points, -11.87 percentage points, and -2.99 percentage points [5][6]. - The company is optimistic about the future of GPU development and has committed to investing in GPU research and development, with total R&D expenditure reaching 331 million yuan in 2023, a year-on-year increase of 6.03%, accounting for 46.44% of revenue. The company has also established a joint laboratory with Peking University to focus on high-performance computing software development [5][6]. - In 2024, the company successfully developed the Jinghong series of high-performance intelligent computing modules and systems, filling product gaps in AI training, inference, and scientific computing applications. These products support various precision operations and are compatible with mainstream domestic and international computing ecosystems, significantly shortening user adaptation verification cycles [6]. - The company's core business remains stable, with a solid competitive position in the graphics display control sector. The growth of the domestic ecosystem is accelerating, and the company is expected to benefit from the increasing demand for computing power driven by AI technology. The projected net profits for 2024-2026 are 198 million yuan, 378 million yuan, and 542 million yuan, corresponding to current price-to-earnings ratios of 160x, 84x, and 59x, respectively [6].