Amlogic(688099) 德邦证券·2024-04-16 16:00Investment Rating - Buy (Maintained) [2] Core Views - The company, Jingcheng Co Ltd (688099 SH), has shown a steady recovery from the industry downturn, with revenue increasing for three consecutive quarters in 2023 and a significant year-on-year growth of 33 12% in Q1 2024 [4] - Despite a decline in net profit in 2023, the company achieved a 42 82% quarter-on-quarter increase in Q4 2023, indicating a turnaround in profitability [4] - The company has maintained high R&D investment during the industry downturn, leading to the successful launch of new products such as 8K ultra-high-definition SoC chips and next-generation T-series chips [5] - The company has expanded its product matrix and accumulated a stable customer base, including major players like ZTE, Alibaba, Google, and BMW [5] - The company expects further revenue growth in 2024, supported by its stock incentive plan and continuous product innovation [4] Financial Performance and Forecast - In 2023, the company reported revenue of 5 371 billion yuan, a year-on-year decrease of 3 14%, and net profit of 498 million yuan, a year-on-year decrease of 31 46% [4] - For Q1 2024, the company expects revenue of 1 378 billion yuan, a year-on-year increase of 33 12%, and net profit of 125 million yuan, a year-on-year increase of 310 68% [4] - The company's gross margin in 2023 was 36 41%, slightly down by 0 69 percentage points due to rising raw material costs [4] - The company forecasts revenue of 6 525 billion yuan, 8 018 billion yuan, and 10 037 billion yuan for 2024, 2025, and 2026, respectively, with net profit expected to reach 753 million yuan, 1 111 billion yuan, and 1 493 billion yuan in the same periods [5] - The company's PE ratio is projected to be 29x, 20x, and 15x for 2024, 2025, and 2026, respectively [5] Product and Market Development - The company has successfully launched several new products, including 8K ultra-high-definition SoC chips, next-generation T-series chips, and second-generation Wi-Fi Bluetooth chips, which have been commercialized and adopted by major clients [5] - The company's automotive electronics chips have been mass-produced and adopted by leading car manufacturers such as BMW, Lincoln, and Zeekr [5] - The company has established a strong presence in both domestic and international markets, with its products widely used by major operators and enterprises, including China Mobile, Xiaomi, and Samsung [5] R&D and Innovation - The company increased its R&D personnel by 99 in 2023, with R&D expenses reaching 1 283 billion yuan, an increase of 97 million yuan compared to 2022 [5] - The company's R&D efforts have resulted in significant technological advancements, including the adoption of 12nm FinFET technology in its T-series chips and the development of Wi-Fi 6 2T2R and BT 5 4 chips [5] Stock Incentive Plan - The company implemented two stock incentive plans in 2023, with expected payments of 99 05 million yuan, 47 44 million yuan, 17 45 million yuan, and 3 30 million yuan for 2024, 2025, 2026, and 2027, respectively, reflecting confidence in future performance [4]