Amlogic(688099) 东方证券·2024-03-02 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 84.00 CNY [6][8]. Core Views - The company reported a revenue of approximately 5.367 billion CNY for 2023, a year-on-year decrease of about 3%, and a net profit attributable to the parent company of approximately 497 million CNY, down 32% year-on-year. However, the company showed improvement in the second half of the year, with Q4 revenue reaching 1.51 billion CNY, a 32% year-on-year increase, and a net profit of 183 million CNY, up 298% year-on-year [5]. - The company continues to invest in R&D for TV chips and is expected to expand its market share with clients like TCL, Xiaomi, and Skyworth. The new T-series high-end chips are seeing increased shipments and support advanced features like 8K hardware decoding [5]. - The company’s AIoT chips are widely used across various applications, including AR devices, smart home products, and more, positioning the company to benefit from the AI computing power upgrade trend [5]. - The company has sold over 16 million Wi-Fi chips, with new Wi-Fi 6 products entering commercial production in 2023, which will provide new growth momentum [5]. - The automotive electronics segment is also making strides, with chips being used by major car manufacturers, supporting advanced features and benefiting from the trend towards intelligent vehicle cabins [5]. Financial Summary - Revenue projections for 2023-2025 are 5.367 billion CNY, 7.092 billion CNY, and 8.650 billion CNY, respectively, with expected growth rates of 32% and 22% in the following years [4]. - The company’s earnings per share (EPS) are projected to be 1.19 CNY for 2023, 1.68 CNY for 2024, and 2.42 CNY for 2025 [4][6]. - The gross margin is expected to stabilize around 37% in the coming years, with net profit margins improving to 11.7% by 2025 [4].