JADARD TECHNOLOGY INC.(688252) 中银证券·2024-05-06 12:30Investment Rating - The report maintains an Overweight rating for the company, with a target price of RMB 13.79 [1] - The sector rating is Outperform [1] Core Views - The company's Q1 2024 revenue reached RMB 345 million, a YoY increase of 46%, but the gross margin declined by 0.8 percentage points YoY to 19.6% [3] - The company has successfully developed key products, including AMOLED DDIC for smartphones, TDDI for tablets, and four-color e-paper driver chips, which are expected to drive future growth [3] - Despite the recovery in revenue, the gross margin remains under pressure, with Q1 2024 gross margin at 19.6%, down 0.4 percentage points QoQ [4] Financial Performance - In Q1 2024, the company's revenue was RMB 345 million, down 10% QoQ but up 46% YoY [4] - The gross margin for Q1 2024 was 19.6%, a slight decline from Q4 2023's 20.0% [4] - Non-GAAP net profit attributable to the parent company was RMB 24 million in Q1 2024, down 22% QoQ but up 133% YoY [4] - The company's 2023 revenue breakdown shows mobile smart terminal display chips contributed RMB 992 million, up 7% YoY, while e-paper driver chips revenue declined 37% YoY to RMB 136 million [4] Product Development - The company has made significant breakthroughs in AMOLED DDIC for smartphones, TDDI for tablets, and four-color e-paper driver chips, which are expected to enhance its market competitiveness [4] - The company is the first in the industry to achieve mass production of four-color e-paper driver chips [4] Valuation and Forecast - The company's estimated EPS for 2024/2025/2026 is RMB 0.34/0.55/0.68, with a market cap of approximately RMB 5.64 billion as of April 30, 2024 [4] - The PE ratios for 2024/2025/2026 are 40.4x, 25.3x, and 20.2x, respectively [4] - The report has revised the 2024 profit forecast downward due to the impact of price wars in the DDIC industry and the lack of significant gross margin recovery in Q1 2024 [4] Historical Performance - The company's revenue growth rate for 2024E is projected at 24.2%, with EBITDA expected to reach RMB 143 million [6] - The net profit attributable to the parent company is forecasted to grow by 23.8% in 2024E, reaching RMB 140 million [6] - The gross margin is expected to improve to 20.9% in 2024E, up from 20.0% in 2023 [6] Market Position - The company's total market capitalization is approximately RMB 5.64 billion, with a 3-month average daily trading volume of RMB 48.82 million [14] - The company's major shareholder, Hengfeng Limited, holds a 54.57% stake [14] Growth Drivers - The company's growth is expected to be driven by its advancements in AMOLED DDIC for smartphones, TDDI for tablets, and four-color e-paper driver chips [16] - The report highlights the potential for these products to drive a new wave of growth for the company [16]