On the evening of January 17, Loongson Zhongke (688047) disclosed the 2024 annual performance forecast, which is expected to achieve operating income of 506 million yuan in 2024, a net profit loss of 619 million yuan attributable to the parent company, a loss of 329 million yuan in the same period last year, and a non-net profit loss of 655 million yuan, a loss of 442 million yuan in the same period last year. Based on the closing price on January 17, Loongson Zhongke's current price-to-earnings ratio (TTM) is about -81.38 times, the price-to-book ratio (LF) is about 15.69 times, and the price-to-sales ratio (TTM) is about 99.55 times.

Based on the average value of this disclosed performance forecast, the company's price-to-earnings ratio (TTM) chart in recent years is as follows

According to the data, the company is engaged in the business of processor chip products and integrated solutions.

According to the announcement, the reason for the change in the company's performance is that during the reporting period, in the case of a sharp decline in related revenue due to the stagnation of the traditional advantageous industrial control market, the company firmly seized the opportunity for the e-government market to begin to recover, gave full play to the cost-effective advantages of new products such as 3A6000 and 2K0300, and promoted the company's revenue to re-enter the growth cycle in the second half of 2024. As the e-government market began to pick up, the company took the initiative to reduce the solution business, the solution business revenue decreased significantly year-on-year, and the chip product business revenue increased significantly year-on-year. The overall annual operating income of the company was the same as that of last year, showing a trend of stabilization and improvement.

During the reporting period, the gross profit margin rebounded due to the significant increase in sales of products in the field of informatization, but the impact of fixed cost allocation on gross profit margin still exists, coupled with the high cost of bridge products shipped with desktop CPUs in the early stage, which has not yet recovered to the ideal level. Industrial control chip products are affected by the demand of specific industries has not yet recovered, and the decline in operating income of this part of the business has led to a decrease in the contribution of the gross profit of the industrial control chip business, which in turn affects the overall gross profit margin.

During the reporting period, the company's government subsidies and capital investment income that meet the conditions for profit and loss recognition decreased compared with the same period last year.

During the reporting period, the company's credit impairment losses and asset impairment losses accrued in accordance with the established accounting policies increased more than the same period last year, and are expected to exceed 200 million yuan, mainly due to the impact of the macroeconomic environment under pressure, and the collection of some customers was lower than expected; The stagnation of the traditional advantageous industrial control market has led to the inventory age of the company's predecessor products reaching the standard of provision for inventory price decline. However, with the gradual recovery of the traditional advantageous industrial control market in the future, it is more likely that the products that have been provided for inventory impairment will be sold in the industrial control field in the later stage, and it is expected that it will not have a substantial impact on the company's operation.

Proofreading: Yang Ning

Indicator Annotation:

P/E ratio = total market capitalization / net profit. When the company loses money, the P/E ratio is negative, and it is not practical to use the P/E ratio for valuation, and the P/B ratio or P/B ratio is often used as a reference.

Price-to-book ratio = total market capitalization / net assets. The price-to-book ratio valuation method is mostly used for companies with large fluctuations in earnings and relatively stable net assets.

Price-to-sales ratio = total market capitalization / operating income. The price-to-sales ratio method is often used for growing companies that are losing money or making small profits.

The price-to-earnings ratio and price-to-sales ratio in this article are calculated using the TTM method, that is, the data for the 12 months up to the latest financial report (including forecast). The price-to-book ratio is calculated using the LF method, that is, based on the latest financial report data. The quantile calculation range of the three is from the company's listing to the latest announcement date.

When the P/E ratio and price-to-book ratio are negative, the current quantile is not displayed, which will cause the line chart to be interrupted.