Ge Long Hui·2025-08-23 02:40Core Viewpoint - The company reported strong financial performance for the first half of 2025, with revenue and net profit exceeding market expectations, driven by the growth of its rear camera business [1][2]. Financial Performance - In the first half of 2025, the company achieved revenue of $1.36 billion, representing a year-on-year increase of 132.2% [1]. - The net profit attributable to shareholders was $67.4 million, up 320.21% year-on-year [1]. - The gross margin stood at 11.47%, a decrease of 0.82 percentage points year-on-year, while the net margin was 4.93%, an increase of 2.20 percentage points year-on-year [1]. Business Growth Drivers - The significant revenue growth was attributed to the rear camera business entering a ramp-up phase, with the company capturing over 30% market share in new iPhone ultra-wide and periscope lenses [1]. - The company’s competitive advantages in yield, cost, and efficiency have allowed it to further increase its market share [1]. - The company is expected to continue benefiting from optical upgrades in Apple products, including iPhones, wearables, and smart home devices, driving future growth [2]. Future Outlook - The company anticipates strong support for its performance in the second half of 2025 from new product launches, including the iPhone 17, which will feature periscope upgrades and ultra-wide lenses [2]. - Profitability is expected to improve further as production rates increase in the second half of the year [2]. - The company is actively engaging in new business areas such as AR/VR and robotics, which are expected to provide long-term growth opportunities [2]. Market Position - The company is projected to achieve revenues of $3.815 billion, $5.009 billion, and $7.038 billion in 2025, 2026, and 2027, respectively, with net profits revised to $200 million, $270 million, and $365 million for the same years [2]. - The current market valuation corresponds to price-to-earnings ratios of 17.6, 13.0, and 9.6 for 2025, 2026, and 2027, indicating that the company is undervalued compared to comparable peers in the Hong Kong and A-share markets [2].