OmniVision Integrated Circuits Group(SH:603501) Great Wall Securities·2024-07-12 06:02Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company is expected to achieve record revenue in Q2 2024, driven by strong performance in high-end mobile and automotive markets [1][3]. - The introduction of new high-specification CIS products is anticipated to continue driving growth in both smartphone and automotive electronics sectors [3][9]. - The company is actively expanding into automotive, medical, and AR/VR applications, indicating broad growth potential [3]. Financial Summary - Revenue Forecast: The company forecasts Q2 2024 revenue between 6.26 billion to 6.54 billion CNY, with a median of 6.40 billion CNY, representing a year-on-year increase of 41.5% and a quarter-on-quarter increase of 13.4% [1][7]. - Net Profit Forecast: The expected net profit for Q2 2024 is between 750 million to 850 million CNY, with a median of 800 million CNY, indicating a return to profitability compared to the previous year [1][7]. - Earnings Growth: The company anticipates significant growth in net profit, projecting 2.99 billion CNY for 2024, 4.29 billion CNY for 2025, and 6.15 billion CNY for 2026, with corresponding P/E ratios of 42, 29, and 21 [3][13]. Business Segments - Smartphone Sector: In 2023, the smartphone segment generated 10.483 billion CNY, accounting for 50% of total revenue, with over 60% of this from new 50MP and above CIS products [3]. - Automotive Sector: The automotive electronics segment generated 6.29 billion CNY in 2023, making up 30% of total revenue, with 72.3% of this from automotive CIS business [3]. Product Development - The company has successfully launched high-spec CIS products such as OV50H and OV50K40 in the high-end smartphone market, with significant adoption in flagship models [9]. - In the automotive sector, the introduction of the 8MP CMOS product OX08D10 is expected to lead to mass production in the second half of 2024, capitalizing on the increasing demand for automotive CIS due to rising levels of autonomous driving [9].