Yuanjie Semiconductor Technology (SH:688498) Great Wall Securities·2024-05-06 12:02Investment Rating - The report maintains a "Buy" rating for the company, expecting the stock price to outperform the industry index by over 15% in the next six months [2][18]. Core Insights - The company faced short-term pressure in 2023 due to inventory issues in the telecom market and a slowdown in construction by end customers, leading to a significant decline in revenue and net profit. However, the company is adjusting its product structure to meet diverse customer needs and is focusing on high-speed optical modules driven by AI demand [3][5][7]. - The company is expected to see a recovery in performance with projected net profits of 0.78 billion, 1.35 billion, and 1.72 billion for 2024, 2025, and 2026 respectively, alongside EPS of 0.91, 1.58, and 2.01 [5][20]. Financial Summary - In 2023, the company reported revenue of 1.44 billion, a year-on-year decrease of 48.96%, and a net profit of 0.19 billion, down 80.58% year-on-year. However, in Q1 2024, revenue increased to 0.60 billion, a 72.33% year-on-year growth, while net profit was 0.11 billion, reflecting a decrease of 11.06% year-on-year but a significant quarter-on-quarter increase [3][7]. - The company's revenue growth rates are projected to rebound significantly, with expected growth rates of 89.0%, 43.0%, and 27.0% for 2024, 2025, and 2026 respectively [2][25]. - The company's financial ratios indicate a P/E ratio of 169.1 for 2024, decreasing to 76.9 by 2026, and a P/B ratio of 6.0 for 2024, decreasing to 5.4 by 2026 [2][25].