increase revenue without increasing profits, NOVOSENSE (688052. SH) expects its net profit loss to widen last year.

It is expected to lose up to 440 million yuan

On the evening of January 17, NOVOSENSE released its 2024 annual performance forecast, saying that it is expected to achieve operating income of 1.9 billion yuan to 2 billion yuan, an increase of 589 million yuan to 689 million yuan compared with the same period last year, a year-on-year increase of 44.94% to 52.56%.

It is estimated that the net profit attributable to the parent company will be -440 million yuan to -360 million yuan, a decrease of 54.6652 million yuan to 135 million yuan compared with the same period last year, and the net profit after deduction will be -490 million yuan to -410 million yuan, a decrease of 16.8793 million yuan to 96.8793 million yuan compared with the same period last year.

In 2023, NOVOSENSE will achieve operating income of 1.311 billion yuan, net profit attributable to the parent company of -305 million yuan, and non-net profit of -393 million yuan.

The above-mentioned performance forecast shows the characteristics of increasing revenue but not increasing profits. In this regard, NOVOSENSE explained in the announcement that the revenue growth is mainly due to the company's steady growth in demand in the downstream automotive electronics field, and the company's related products in the field of automotive electronics continue to increase; At the same time, the prosperity of the consumer electronics field continues to improve; Most customers in the pan-energy sector, industrial automation and digital power are back to normal demand.

For the net profit loss, NOVOSENSE said in the announcement that it was mainly affected by the overall macro economy and the intensification of market competition, the company's product prices were under pressure, and the gross profit margin decreased compared with the same period last year.

In addition, the announcement shows that, based on prudent considerations, NOVOSENSE has made impairment provisions for assets that are expected to have a greater possibility of impairment losses, which makes credit impairment losses and asset impairment losses increase significantly compared with the same period last year. It is reported that the total amount of impairment provisions is about 103 million yuan.

shareholders throw out a plan to reduce their shareholdings

It is worth mentioning that on the evening of January 16, the shareholders of NOVOSENSE threw out a shareholding reduction plan.

NOVOSENSE announced that the company's shareholders Guorun Ruiqi, Huiyue Growth, Suzhou Huaye and their concerted action Changsha Huaye intend to reduce their holdings of the company's shares through block transactions or bidding transactions during the reduction period disclosed in this shareholding reduction plan, reducing their holdings by a total of 4.2758 million shares, accounting for 3% of the total share capital.

According to the announcement, if the shareholding is reduced through auction trading, it will be carried out within 3 months after 15 trading days from the date of disclosure of the announcement of the shareholding reduction plan; If the shareholding is reduced through block trading, it shall be carried out within 3 months after 3 trading days from the date of disclosure of the announcement of the share reduction plan.

According to reports, the above shares are all shares obtained by Guorun Ruiqi, Huiyue Growth, Suzhou Huaye, and Changsha Huaye before the initial public offering of NOVOSENSE and the shares obtained by the implementation of capital reserve to increase share capital, and they have all been listed and circulated since April 24, 2023.

As of the close of trading on January 17, NOVOSENSE (688052.SH) reported 146.60 yuan per share, with a total market value of 20.89 billion yuan. Based on this calculation, the value of the above-mentioned reduced shares is about 627 million yuan.

Ma Tianyi, an analyst at Soochow Securities, said that as a domestic analog leader, after the end of overseas expansion, the company's profitability is expected to gradually increase as the industry gradually bottoms out. Wang Fang, an analyst at Zhongtai Securities, believes that NOVOSENSE has formed a certain leading edge in the domestic automotive analog IC and other high-barrier markets, and high-difficulty new products continue to be launched, and it is expected to achieve high growth in the future with the opportunity of localization of high-end analog IC.

(Disclaimer: The content of this article is for reference only and does not constitute investment advice.) Investors act accordingly at their own risk. ）