Sino Wealth(SZ:300327) Great Wall Securities·2024-06-04 12:01Investment Rating - The report upgrades the investment rating of the company to "Buy," expecting a price increase of over 15% relative to the industry index within the next six months [12][32]. Core Insights - The company faced performance pressure in 2023, with a revenue decline of 18.83% year-on-year, but a recovery in market demand is anticipated in Q1 2024, driven by the resurgence in smart home appliances and lithium battery management chips [15][32]. - The gross margin for Q1 2024 was reported at 33.85%, a decrease of 5.00 percentage points year-on-year, attributed to intense market competition and pricing pressures [15]. - The company is expanding its product offerings, including AMOLED display driver chips targeted at brand markets, and has made significant progress in developing new products for various applications [8][18][25]. Financial Performance Summary - In 2023, the company achieved a revenue of 1.3 billion yuan, down from 1.6 billion yuan in 2022, with a net profit of 186 million yuan, a decrease of 42.3% year-on-year [15][24]. - For Q1 2024, the company reported a revenue of 319 million yuan, a year-on-year increase of 10.33%, while the net profit was 31 million yuan, down 8.83% year-on-year [15][24]. - The report projects net profits of 192 million yuan, 330 million yuan, and 410 million yuan for the years 2024, 2025, and 2026, respectively, with corresponding EPS of 0.56, 0.96, and 1.20 yuan [32]. Market Trends - The AMOLED screen penetration rate is increasing, with over half of the smartphones sold globally in 2023 featuring AMOLED technology, and the market is expected to continue growing [18]. - The semiconductor market is showing signs of recovery, with a forecasted rebound in sales for 2024, which may positively impact the company's performance [25].