Hefei Chipmore Technology (SH:688352)2024-05-06 09:00Investment Rating - The investment rating for the company is "Buy" with a target price of RMB 11.15, indicating an expectation for the stock to outperform the benchmark index by 10%-20% over the next 6-12 months [7][22]. Core Insights - The company has shown strong growth in its display driver chip business, achieving revenue of RMB 1.463 billion in 2023, representing a year-over-year increase of 25%. It ranks third globally in the display driver packaging and testing sector [9]. - The non-display driver chip business is also expanding, with revenue of RMB 130 million in 2023, up 8% year-over-year. The company is focusing on power management and RF front-end chip packaging, gradually forming a second growth curve [9]. - The company has adjusted its earnings forecasts for 2024, with expected EPS of RMB 0.35, reflecting a 12.9% increase from previous estimates [2][9]. Financial Summary - The company's main revenue is projected to grow from RMB 1.317 billion in 2022 to RMB 1.930 billion in 2024, with a compound annual growth rate (CAGR) of 18.5% [2][8]. - EBITDA is expected to increase from RMB 606 million in 2022 to RMB 761 million in 2024, indicating a healthy growth trajectory [2][8]. - The net profit attributable to shareholders is forecasted to rise from RMB 303 million in 2022 to RMB 411 million in 2024, with a growth rate of 10.6% [2][8]. Valuation Metrics - The company’s price-to-earnings (P/E) ratio is projected to decrease from 43.7 in 2022 to 32.3 in 2024, suggesting an improving valuation as earnings grow [2][10]. - The price-to-book (P/B) ratio is expected to decline from 4.1 in 2022 to 2.2 in 2024, indicating a more attractive valuation relative to its book value [2][10]. - The enterprise value to EBITDA (EV/EBITDA) ratio is anticipated to drop from 0.8 in 2022 to 15.0 in 2024, reflecting a shift in market perception as the company scales its operations [2][10].