Smartsens Technology (Shanghai) (SH:688213) Tebon Securities·2024-07-16 13:30Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company is expected to achieve revenue of 2.4 to 2.5 billion yuan in the first half of 2024, representing a year-on-year increase of 124% to 133%. The forecasted net profit attributable to shareholders is between 135 to 155 million yuan, indicating a significant turnaround from a loss in the previous year [4][5] - In Q2 2024, the company anticipates revenue of 1.563 to 1.663 billion yuan, a year-on-year increase of 153% to 169%, and a quarter-on-quarter increase of 87% to 99%. The net profit for Q2 is expected to be between 121 to 141 million yuan, with a net profit margin projected to be between 7.3% and 9.0%, a substantial increase from 1.67% in Q1 2024 [4][5] - The growth in revenue and profit is primarily driven by the recovery in the smart security and smartphone sectors, with new product launches enhancing competitiveness and market demand [5] Financial Performance Summary - The company forecasts revenues of 5.767 billion yuan, 7.449 billion yuan, and 9.222 billion yuan for 2024, 2025, and 2026 respectively, with net profits expected to be 427 million yuan, 626 million yuan, and 838 million yuan for the same years [6][9] - The gross margin is projected to improve from 20.0% in 2023 to 24.3% in 2024, and further to 25.2% by 2026 [7][9] - The company has introduced several new products in 2024, including a 50MP camera sensor, which is expected to support continued growth in the smartphone CIS business [5][6] Investment Recommendations - Based on the strong performance in H1 2024, the report revises the profit forecasts upward for 2024-2026, with corresponding price-to-earnings ratios of 53, 36, and 27 times [5][6]