CRM(SH:688396) Huaxin Securities·2024-05-22 10:30Investment Rating - The report assigns an "Accumulate" rating for the company for the first time [2]. Core Views - The company is experiencing short-term pressure on performance due to cyclical market conditions, but long-term growth is expected as major projects ramp up [2]. - In 2023, the company reported a 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% [2]. - For Q1 2024, the company achieved a revenue of 2.116 billion yuan, a decline of 9.82% year-on-year, and a net profit of 33 million yuan, down 91.27% [2]. Summary by Sections Business Performance - The semiconductor market in China faced cyclical downturns in 2023, impacting the company's operating profit and net profit [2]. - The company increased its R&D investment to 1.154 billion yuan in 2023, a growth of 25.30%, accounting for 11.66% of revenue [2]. - The company is actively expanding its product lines, including two 12-inch production lines and a testing base, which are expected to contribute positively to revenue in the future [4]. Product Structure and Market Focus - The company is shifting its product structure towards high-end applications, with the new energy sector (including automotive and renewable energy) accounting for 39% of its applications, while consumer electronics represent 34% [2]. - The revenue share from the new energy sector increased from 16% in 2022 to 20% in 2023, indicating a growing market presence [2]. Capacity Expansion and Future Growth - The company is gradually releasing capacity from its 12-inch production lines, which is expected to drive revenue recovery [4]. - The Chongqing 12-inch production line focuses on power devices, while the Shenzhen line is set to produce specialized analog power integrated circuits and MCU products, with full production expected by the end of 2024 [4]. Financial Forecast - Revenue forecasts for 2024, 2025, and 2026 are projected at 10.930 billion yuan, 12.169 billion yuan, and 13.667 billion yuan, respectively, with corresponding EPS of 1.13 yuan, 1.30 yuan, and 1.44 yuan [5]. - The current stock price corresponds to a PE ratio of 33.8, 29.4, and 26.6 for the years 2024, 2025, and 2026, respectively [5].