The Zhitong Finance App learned that Everbright Securities released a research report stating that it maintains the “buy” rating of Gaowei Electronics (01415), has certainty in performance growth and has a clear logic of subsequent development. However, considering the pressure on the 23-year base, the net profit returned to mother was slightly lowered by 6%/11% to US$0.9/180 million, adding a 26-year forecast of US$220 million. The company's 2023 performance fell slightly short of expectations. The decline in gross margin and pressure on iPad business shipments led to price pressure for A customers; the decline in net profit was mainly due to a decline in gross profit, an increase in R&D and administrative expenses, and an increase in financing costs.

The main views of Everbright Securities are as follows:

It is expected to break into iPhone rear-view photography in '24, and the share may exceed previous expectations.

The cooperative relationship between the company and customer A in the iPhone front camera field has been stable for a long time. The FC package production line is scarce, and the company continues to invest in upgrading supporting equipment to meet customer needs. The bank believes that the company is expected to officially enter the iPhone rear camera field in '24. Considering that the rear camera has higher pixels and more lenses than the front camera, the bank expects the standalone value of the company's iPhone rear camera business to be about 7 times that of the front camera, and it is expected that with the introduction of new 2H24 products, The large amount of investment in R&D and equipment in the early stages is expected to pay off, and the corresponding rate is expected to narrow significantly.

With the release of new iPads and optical upgrades in '24, the tablet business is expected to achieve a double increase in volume and price.

Customer A did not release any new iPad for 23 years. The global tablet industry's wait-and-see mentality has put pressure on iPad shipments, which in turn greatly affects the company's revenue level. Looking ahead to 2024, according to reports from foreign technology media 9to5Mac, Apple is expected to launch a variety of new models to expand the existing iPad lineup, which may include the larger iPad Air and the thinner iPad Pro. The bank believes that the release of new models is expected to stimulate users' switching needs, and the continued trend of optical upgrades is expected to drive up CCM prices. At the same time, with the introduction of new models, the company's iPad photography share is expected to further increase.

LiDAR has a broad range of application scenarios, and cooperation with Sagiteng Juchuang continues to be deepened.

LiDAR (LiDAR) application scenarios include various fields such as vehicles, robotics, and smart cities. Among them, the automotive field is currently the largest application market. According to Yole statistics, the global automotive LiDAR market is expected to continue to grow from US$330 million in 2022 to US$4.65 billion in 2028, corresponding to a CAGR of 55%. The company and Suteng Juchuang, a leader in the global LiDAR industry, have established a joint venture and deepened cooperation, and the order prospects are very certain.

The MR supply chain is in a unique position, and we expect Vision Pro to expand to open up medium- to long-term growth space.

On a short-term basis, according to recruitment information published on Apple's official website on March 21, the bank optimistically anticipates that Vision Pro may launch 4M24 or 5M24 in China, Japan, and Australia; in the medium term, along with the gradual improvement of the application ecosystem, it is expected that consumer-grade MR amplification will open up room for growth for the company.

Risk warning: single customer structure, global mobile phone shipments falling short of expectations, technology upgrades falling short of expectations, etc.