Amlogic(SH:688099) Guotou Securities·2024-05-06 09:00Investment Rating - The investment rating for the company is "Buy-A" with a target price of 78.5 CNY for the next six months [1][2]. Core Views - The company reported a significant increase in revenue and net profit for Q1 2024, with revenue reaching 1.378 billion CNY, a year-on-year increase of 33.16%, and net profit of 128 million CNY, a year-on-year increase of 319% [1]. - The company is expected to benefit from a recovery in demand and the introduction of new products, indicating a potential shift away from the industry's downturn [1]. - The company has maintained a high level of R&D investment, with R&D expenses amounting to 328 million CNY in Q1 2024, reflecting a commitment to innovation and product development [1]. Financial Performance Summary - The company’s projected revenues for 2024, 2025, and 2026 are 6.499 billion CNY, 8.384 billion CNY, and 9.893 billion CNY, respectively [2][3]. - The projected net profits for the same years are 730 million CNY, 1.081 billion CNY, and 1.493 billion CNY [2][3]. - The company’s earnings per share (EPS) is expected to be 1.75 CNY in 2024, increasing to 3.57 CNY by 2026 [3][4]. - The company’s price-to-earnings (PE) ratio is projected to be 33.3 in 2024, decreasing to 16.3 by 2026, indicating improving valuation metrics over time [3][4]. Product Development and Market Position - The company has successfully launched its first 6nm commercial chip and new Wi-Fi products, which are expected to enhance its competitive position in the market [1]. - The T series chips have seen sales revenue growth of over 100% year-on-year in Q1 2024, indicating strong market acceptance [1]. - The company is expanding its product lines, including applications in smart TVs, smart projectors, and smart home devices, which are expected to drive future growth [1].