Smartsens Technology (Shanghai) (SH:688213) Guotai Junan Securities·2024-10-16 23:06Investment Rating - The report maintains a "Buy" rating for the company with a target price raised to 81.60 CNY, up from the previous forecast of 67.99 CNY [5][10]. Core Views - The company is expected to benefit from the increasing penetration of 50M CIS chips and the ramp-up of major customer orders, which should sustain high growth rates [3][10]. - The Q3 performance met expectations, with a significant year-on-year revenue increase of 149% and a quarter-on-quarter increase of 8%, achieving a record high for a single quarter [10]. - The company is positioned as a leading supplier of 50M CIS chips, with projected revenue growth of 131-143% year-on-year for the first three quarters of 2024 [10]. Financial Summary - The company achieved a revenue of 1.743 billion CNY in Q3 2024, with a net profit of 122 million CNY, reflecting substantial growth despite a slight quarter-on-quarter decline [10]. - The EPS forecast for 2024 and 2025 has been raised to 1.20 CNY and 2.25 CNY respectively, with a new EPS estimate for 2026 set at 3.53 CNY [10][11]. - The company’s total revenue is projected to reach 5.984 billion CNY in 2024, with a net profit of 480 million CNY, marking a significant turnaround from previous losses [11][13]. Market Position and Growth Drivers - The company is experiencing rapid growth in its 50M chip product line, with increasing market share in both mobile and security applications [10]. - The report highlights that the company’s products are expected to compete with Sony's flagship offerings, driving further growth [10]. - Anticipated demand in Q4 is expected to enhance both revenue and gross margins, with cost reductions in the foundry segment likely to contribute positively [10].