Investment Rating - The investment rating for the company is "Buy" with a target price of 12.96 CNY, maintaining the "Increase" rating for the next six months [1]. Core Insights - The company reported a revenue of 1.336 billion CNY in 2023, a year-on-year decrease of 22.28%, and a net profit attributable to shareholders of 70.4 million CNY, down 57.58% year-on-year [5]. - The embedded security products sector continues to expand, with applications in various fields such as social security, finance, and communication, contributing to stable industry growth [6]. - The company is positioned to benefit from the ongoing promotion of digital currency and the third-generation social security card replacement, with significant opportunities in the communication sector [8]. Financial Performance Summary - In 2023, the company achieved a revenue of 1.336 billion CNY, with a projected revenue increase to 1.456 billion CNY in 2024, reflecting an 8.98% growth rate [9]. - The net profit attributable to the parent company is expected to recover to 100.91 million CNY in 2024, showing a growth rate of 43.35% compared to 2023 [9]. - The company's EBITDA for 2023 was 191.25 million CNY, with projections of 152.66 million CNY for 2024 [9]. Business Segment Performance - The embedded security products segment generated 1.072 billion CNY in revenue in 2023, a decline of 16.40% year-on-year, while the smart hardware business saw an increase of 8.98% to 147 million CNY [7]. - The software and services segment experienced a significant drop in revenue, down 69.76% to 80.91 million CNY, as the company focused on integrating digital technology into social security card services [7]. Market Position and Future Outlook - The company is recognized as a leader in the smart card industry, with advanced production processes and a strong customer base, positioning it well for future growth in the context of digital currency and social security card initiatives [8]. - The forecast for net profit from 2024 to 2026 is 1.01 billion CNY, 1.21 billion CNY, and 1.43 billion CNY respectively, indicating a positive growth trajectory [8].
行业稳健发展，各业务持续推进