SG Micro Corp(300661) 华鑫证券·2024-05-06 09:02Investment Rating - The report maintains a "Buy" rating for the company [2][5] Core Views - The company's revenue faced short-term pressure in 2023 but showed significant improvement in Q1 2024 [2] - The company is strengthening its core technologies and expanding its product categories [2] - The company's performance is expected to continue improving in 2024 due to growing demand in AI, high-performance computing, and new energy vehicles, as well as a recovery in the consumer electronics market [2] Financial Performance - In 2023, the company achieved revenue of RMB 2.616 billion, a YoY decrease of 17.94%, and net profit attributable to shareholders of RMB 281 million, a YoY decrease of 67.86% [2] - In Q1 2024, the company achieved revenue of RMB 729 million, a YoY increase of 42.03%, and net profit attributable to shareholders of RMB 54.38 million, a YoY increase of 80.04% [2] - The company's R&D investment in 2023 was RMB 737 million, accounting for 28.18% of revenue, a YoY increase of 17.78% [3] Product and Technology - The company has strong independent R&D capabilities and innovation, with 72.72% of employees being R&D personnel [3] - In 2023, the company applied for 230 new patents and launched over 900 new products with independent intellectual property rights [3] - The company's new products include high-precision voltage references, ultra-low insertion loss high-isolation high-bandwidth dual-channel differential analog switches, and high-efficiency DC/DC buck chips with ultra-fast transient response [3] Market and Industry - The global semiconductor industry was in a downturn in 2023, with weak demand and slowing sales, but some segments like new energy vehicles showed growth [2] - The company's main business is the R&D and sales of analog integrated circuits, which have stable growth and strong anti-cyclical capabilities [2] Strategic Partnerships - The company maintains stable and continuous strategic cooperation with major suppliers, including TSMC for wafer manufacturing and top global packaging and testing companies like JCET, Tongfu Microelectronics, and Huatian Technology [4] - The company is building an integrated circuit testing center in Jiangyin, Jiangsu Province, which will undertake part of the testing business upon completion [4] Financial Forecast - The company's revenue is forecasted to be RMB 3.235 billion, RMB 4.022 billion, and RMB 4.906 billion for 2024, 2025, and 2026, respectively [5] - EPS is forecasted to be RMB 0.98, RMB 1.57, and RMB 2.05 for 2024, 2025, and 2026, respectively [5] - The current stock price corresponds to a PE ratio of 78.4x, 48.8x, and 37.6x for 2024, 2025, and 2026, respectively [5] Key Financial Metrics - The company's gross margin was 49.6% in 2023 and is expected to be 45.4%, 48.5%, and 48.1% in 2024, 2025, and 2026, respectively [7] - The net profit margin was 10.3% in 2023 and is expected to be 14.0%, 18.1%, and 19.2% in 2024, 2025, and 2026, respectively [7] - ROE was 7.3% in 2023 and is expected to be 10.8%, 15.1%, and 16.7% in 2024, 2025, and 2026, respectively [7]