ArcSoft(688088) 太平洋·2024-05-12 07:30Investment Rating - The report maintains a "Buy" rating for the company, with a target price based on the last closing price of 33.40 [1]. Core Insights - The company is recognized as a leading player in artificial intelligence, with applications in smartphones, automotive, and AIGC scenarios. The expected EPS for 2024-2026 is projected to be 0.41, 0.54, and 0.70 yuan respectively [1]. - The company reported a revenue of 670 million yuan for 2023, representing a year-on-year increase of 26.07%, and a net profit of 88 million yuan, which is a 53.03% increase year-on-year [3]. - The automotive solutions segment is expanding, with multiple new projects initiated with various automotive manufacturers [3]. Financial Summary - Revenue projections for 2024E, 2025E, and 2026E are 824.41 million yuan, 1,030.52 million yuan, and 1,288.15 million yuan respectively, with growth rates of 23.00%, 25.00%, and 25.00% [4]. - The net profit for 2024E, 2025E, and 2026E is expected to be 167.62 million yuan, 218.15 million yuan, and 285.69 million yuan, with growth rates of 89.43%, 30.15%, and 30.96% respectively [6]. - The diluted EPS for the same period is projected to be 0.22, 0.41, 0.54, and 0.70 yuan, with corresponding PE ratios of 153, 81, 62, and 47 [6]. Business Development - The company is actively enhancing its automotive solutions, providing a comprehensive range of products from in-cabin to external applications, including DMS, AVM, and integrated solutions with ADAS [3]. - The AIGC segment is expected to drive new growth, with the introduction of the ArcMuse computing technology engine and the launch of PhotoStudio® AI intelligent commercial photography cloud studio [24].