The company released its annual performance forecast for 24 and a half years. At 24H1, the company expects to achieve revenue of 11.9-12.2 billion yuan, a year-on-year increase of about 34%-38%; it is expected to achieve net profit due to mother of 1.31-1.41 billion yuan, an increase of about 8 times over the previous year; it is expected to achieve net profit after deducting non-return to mother of 1.32-1.42 billion yuan, an increase of about 18-19 times over the previous year. The company actively promoted product structure optimization and supply chain structure optimization. The company's product gross margin gradually recovered, and overall performance improved markedly.
Demand in the mobile phone market continues to recover, and the company continues to break through high-end main cameras. According to IDC's previous report, global smartphone shipments increased 8% year on year to about 0.289 billion units in the first quarter of 2024, increasing for three consecutive quarters; according to the China Academy of Information and Communications Technology, in May 2024, domestic mobile phone shipments reached 30.33 million units, up about 17% year on year, achieving 3 consecutive months of month-on-month growth. The company continues to introduce high-end mobile CIS products, and has gained a share in the main camera of a large number of high-end models, and is in a leading position in the industry in terms of performance in low power consumption and DCG technology.
Automotive products are progressing well. Along with the rapid penetration of autonomous driving, the company's automobile CIS shipments have also been greatly increased accordingly. The company's 2.1-micron OX08D10 image sensor is the first to use TheiaCel? The technology's 8 million pixel product has leading-edge low-light performance and low power consumption. It is 50% smaller than other similar automotive exterior sensors, and can capture HDR images from 200 meters away. The OX08D10 is an exterior camera that can be used in advanced driver assistance systems and autonomous driving. It is compatible with the NVIDIA Omniverse platform for autonomous driving development, and Qualcomm Snapdragon Ride? Platform, Snapdragon Ride? The Flex SoC is pre-integrated with the Snapdragon Cockpit platform. The company covers a wide range of automotive applications with advanced and compact automotive CIS solutions, including ADAS, in-cab monitoring, electronic rearview mirrors, dashboard cameras, rear-view and panoramic images. In addition to CIS, the company has also invested in other products on a large scale in the automotive market, including MCU, SBC, PMIC, SerDes, TDDI, etc. This year, many products are in the process of product launch and design-win, and will gradually reflect revenue.
We forecast that the company's net profit for 24-26 will be 2.87, 3.87, and 4.97 billion yuan respectively (the original 24-26 forecast was 2.54, 3.51, and 4.55 billion yuan, which mainly adjusted revenue and gross profit margin). Based on the 24-year average PE valuation of 56 times the comparable company, a target price of 132.16 yuan was given to maintain the purchase rating.
Risk warning
Downstream market recovery falls short of expectations; high-end CIS shipments fall short of expectations; automotive business progress falls short of expectations.