CRM(SH:688396) EBSCN·2024-05-07 10:32Investment Rating - The investment rating for the company is "Buy" [1][2] Core Views - The company, Huazhong Microelectronics, is a leading IDM semiconductor enterprise in China, focusing on power semiconductor solutions with strong capabilities in chip design, mask manufacturing, wafer fabrication, and packaging testing [1] - The company has seen a continuous increase in revenue from the new energy sector, with its revenue share from this sector rising from 16% in 2022 to 20% in 2023 [1] - The company is actively expanding its automotive electronics market, with products being adopted by major automotive manufacturers such as BYD, Geely, and others [1] - The company has successfully completed customer certifications for its new wafer manufacturing platform, enhancing its competitive edge [1][2] Financial Performance Summary - In 2023, the company achieved a main business revenue of 9.901 billion yuan, a year-on-year decrease of 1.59%, and a net profit attributable to shareholders of 1.479 billion yuan, down 43.48% year-on-year [1][3] - For Q1 2024, the company reported a main business revenue of 2.116 billion yuan, a year-on-year decrease of 9.82%, and a net profit of 33 million yuan, down 91.27% year-on-year [1] - The company forecasts a net profit of 1.454 billion yuan for 2024, with a projected growth rate of -1.71% [3][4] Revenue and Profit Forecast - The revenue forecast for 2024 is 11.043 billion yuan, with an expected growth rate of 11.54% [3] - The net profit forecast for 2025 is 1.737 billion yuan, with a growth rate of 19.44% [3] - The company has adjusted its net profit forecasts for 2024 and 2025 downwards due to weak recovery in the downstream power semiconductor industry [2] Market Position and Strategy - The company is focusing on the new energy vehicle and photovoltaic sectors, continuously launching new products to meet market demands [2] - The company has established a solid foundation in the third-generation semiconductor market, with significant sales growth in silicon carbide (SiC) and gallium nitride (GaN) power devices, which saw a year-on-year increase of 135% in sales revenue [1][2]