Rockchip(SH:603893) ZHONGTAI SECURITIES·2024-05-07 01:30Investment Rating - The report assigns a "Buy" rating to the company, expecting a relative increase of over 15% compared to the benchmark index within the next 6 to 12 months [6]. Core Views - The company reported significant growth in Q1 2024, achieving a revenue of 5.43 billion yuan, a year-on-year increase of 64.89%, and a net profit of 0.68 billion yuan, marking a turnaround from losses [2][4]. - The recovery in industry demand has driven substantial performance growth for the company, with a quarter-on-quarter revenue increase of 17.5% and a gross margin of 34.68%, up 1.24 percentage points year-on-year [2][4]. - The company is positioned as a leading supplier in the AIoT sector, with its flagship products widely adopted across various applications, including automotive and machine vision [2][4]. Financial Summary - Revenue projections show a growth trajectory from 2,135 million yuan in 2023 to 4,644 million yuan by 2026, reflecting a compound annual growth rate (CAGR) of approximately 30% [2][4]. - Net profit is expected to increase from 135 million yuan in 2023 to 709 million yuan in 2026, indicating a significant recovery and growth potential [2][4]. - The company's earnings per share (EPS) is projected to rise from 0.32 yuan in 2023 to 1.70 yuan in 2026, showcasing strong profitability improvements [2][4]. Market Position - The company is recognized as one of the few core suppliers in the domestic automotive smart cockpit sector, with its products being integrated into mainstream automotive manufacturers [2][4]. - The report highlights the company's strategic focus on expanding its product line and enhancing its product matrix to meet the growing demand in AI and IoT applications [2][4].