In 2024, while stabilizing the cornerstone business of LED lighting driver chips, the company will actively expand the business of AC/DC power supply chips and motor control driver chips, and promote high-performance computing power chips to enter the stage of large-scale mass production. By optimizing product structure, strengthening supply chain management, and improving process technology, the company's overall operating income continued to grow, the gross profit margin increased significantly, and the operating data improved significantly. In 2024, the company will achieve sales revenue of 1.504 billion yuan, a year-on-year increase of 15.38%; the net profit attributable to the parent company was -33 million yuan, and the net profit attributable to the parent company after deducting non-profits was -09 million yuan; Excluding the impact of share-based payment expenses, the net profit attributable to the parent company was 90 million yuan, and the net profit attributable to the parent company after deducting non-profits was 0.04 million yuan. In order to expand the product layout and enhance the market competitiveness, the company is planning to acquire 100% of the equity of Yichong Technology through the issuance of shares, convertible corporate bonds and cash payment. After the completion of the transaction, Jingfeng Mingyuan and Yichong Technology will highly complement each other on the product side, share resources on the client side, collaboratively develop the market, and promote the company's high-quality development.

Rapid growth of motor control drive chips, further increasing the stake in Lingou Chuangxin: In October 2024, the company further strengthened its control by acquiring 19.1930% of the equity of Lingou Chuangxin through cash, and as of the end of 24, the company held 80.8068% of the equity of Lingou Chuangxin. In 2024, Lingou Chuangxin will achieve sales revenue of 298 million yuan, an increase of 69.32% year-on-year; The net profit attributable to owners of the parent company was 97 million yuan, an increase of 83.37% year-on-year. At present, the company's motor control drive chips cover many fields such as electric travel, clean appliances, high-speed hair dryers, automotive electronics, power tools, fans and major appliances, and achieved sales revenue of 318 million yuan in 24 years, an increase of 95.67% year-on-year.

Breakthrough in high-performance computing power chips: In 2024, the company's high-performance computing product line will achieve mass production of a full range of multi-phase controllers, DrMOS, POL and Efuse, achieve business breakthroughs for some international and domestic customers, and enter the stage of large-scale sales, with sales revenue of 43 million yuan that year, an increase of 1,402.25% year-on-year. As of the end of 24 years, the company's products have been certified by many international and domestic CPU/GPU chip manufacturers, including 16-phase dual-track digital PWM controller BPD93136, 4-phase PWMVID digital PWM controller BPD93204 and integrated intelligent integrated power devices BPD80350E The product portfolio solution complies with NVIDIA's latest OpenVReg power specifications OVR16 and OVR4-22, becoming the first company to enter NVIDIA Recommended supplier list of domestic power chip companies.

Profit forecast, valuation and rating: Considering the slowdown in the recovery pace of the company's home lighting boom, the 25-year net profit attributable to the parent company is lowered to 117 million yuan (down 54%), and the new 26-27 year net profit attributable to the parent is 205 million yuan/309 million yuan, and the corresponding PE in 25-27 years is 80/45/30X. The company has opened up the market space through the merger and acquisition of Lingou Chuangxin, and the high-performance computing power chip has benefited from the increase in the demand for high-current power supply control of servers and the gradual maturity of its own technology, which is expected to become a new growth momentum for the company and maintain an "overweight" rating.

Risk warning: the development of new products is less than expected; Downstream demand is less than expected.