Smartsens Technology (Shanghai) (688213) Minsheng Securities·2024-10-28 09:30Investment Rating - The report maintains a "Recommended" rating for the company [1][3]. Core Views - The company has shown significant revenue growth, with a 137.33% year-on-year increase in revenue for the first three quarters of 2024, reaching 4.208 billion yuan, and a net profit growth of 517.32%, amounting to 273 million yuan [1]. - The smartphone business has been a key driver of growth, with a notable increase in shipments of high-end 50 million pixel products, leading to a revenue increase of 295.46% year-on-year in the smartphone CIS segment [1]. - The company emphasizes research and development, with R&D expenses rising by 50.11% year-on-year to 321 million yuan, and a focus on maintaining high R&D efficiency to adapt to market changes [1]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a gross margin of 21.96%, an increase of 3.65 percentage points year-on-year, with a third-quarter gross margin of 23.12% [1]. - The forecast for 2024-2026 projects revenues of 6.074 billion yuan, 8.194 billion yuan, and 10.250 billion yuan respectively, with corresponding net profits of 405 million yuan, 829 million yuan, and 1.247 billion yuan [2][4]. - The company's PE ratios are projected to decrease from 68 in 2024 to 22 in 2026, indicating improving valuation metrics over time [2][5].