TFME(SZ:002156) Huaan Securities·2024-05-27 00:00Investment Rating - The investment rating for the company is "Buy" (首次) [1] Core Views - The industry is gradually recovering, and the company's performance is in the process of repair. In 2023, the company achieved revenue of 22.27 billion yuan, a year-on-year increase of 3.9%. Each quarter saw revenue growth compared to the previous year, indicating resilience in operations [1][6] - The company's major customer business continues to grow, with a strong partnership with AMD, which accounts for over 80% of its orders. Despite a challenging market environment in 2023, the revenue from major customers increased by 7.95% [1][15] Summary by Sections Industry Recovery and Performance Repair - The company reported a revenue of 22.27 billion yuan in 2023, up 3.9% year-on-year, with quarterly revenue growth observed throughout the year. The fourth quarter revenue was 6.36 billion yuan, reflecting a 4.1% year-on-year increase and a 6.1% quarter-on-quarter increase [1][6] - The gross margin for 2023 was 11.7%, down 2.2 percentage points year-on-year, primarily due to the gradual recovery of industry conditions and traditional business capacity utilization [1][6] - The net profit attributable to shareholders was 170 million yuan, a decline of 66.2% year-on-year, influenced by both the decrease in gross margin and non-operating factors [1][9] Major Customer Business Growth - The company has established a strong partnership with AMD through mergers and joint ventures, becoming AMD's largest packaging and testing supplier. The revenue from major customers has consistently grown for seven consecutive years, with total revenue from two major facilities reaching 15.529 billion yuan in 2023, up 7.95% [1][15] - The automotive electronics and power semiconductor sectors also showed significant growth, with automotive product project revenue increasing by 200% year-on-year [2][16] - The company has successfully developed and scaled production for SiC modules in collaboration with leading industry players, enhancing its market share in photovoltaic storage and new energy vehicle electronics [2][16] Financial Projections - The projected net profits for 2024, 2025, and 2026 are 819 million yuan, 1.21 billion yuan, and 1.54 billion yuan, respectively, with corresponding EPS of 0.54, 0.80, and 1.01 yuan. The latest closing price corresponds to P/E ratios of 38.3, 25.9, and 20.4 times for the respective years [2][3]