China Post Securities·2024-05-16 09:30Investment Rating - The report maintains a "Buy" rating for the company, with expected revenue growth and profit recovery in the coming years [10]. Core Insights - The global semiconductor market is expected to rebound, with a projected growth of 13.1% in 2024 after a decline in 2023 [6]. - The company reported a revenue of 16.23 billion yuan in 2023, a decrease of 3.30% year-on-year, and a net profit of 1.94 billion yuan, down 35.64% year-on-year [5]. - Despite a challenging market environment, the company's Q1 2024 results showed a slight revenue increase of 0.55% quarter-on-quarter, indicating a potential recovery [6]. Financial Performance Summary - In 2023, the company achieved a sales revenue of 16.23 billion yuan, with a gross margin of 27.10%, down 8.76 percentage points year-on-year [5]. - For Q1 2024, the company reported a revenue of 3.30 billion yuan, with a gross margin of 14.89%, reflecting a year-on-year decline of 20.97 percentage points but a quarter-on-quarter increase of 18.12 percentage points [5][6]. - The company’s net profit for Q1 2024 was 2.21 billion yuan, a decrease of 78.76% year-on-year, but a slight recovery from the previous quarter [6]. Market Position and Strategy - The company is focusing on enhancing its unique IC and power device technologies, aiming to meet the growing demand in various sectors such as automotive electronics and smart devices [7][9]. - The company is expanding its 12-inch production capacity, with significant investments planned for new production lines, which are expected to enhance its competitive edge in the semiconductor market [8][9]. - The company’s production capacity utilization has improved significantly, indicating strong market demand for its specialized processes [6][8].