Willsemi(SH:603501)2024-10-29 02:14Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 133.00, indicating a potential upside of 19.0% from the current closing price of RMB 111.78 [1][4][10]. Core Insights - The company reported a record high revenue of RMB 68.2 billion in Q3 2024, representing a year-on-year growth of 10% and a quarter-on-quarter growth of 6%, driven by recovering downstream demand [1]. - The gross margin improved to 30.4% in Q3 2024, an increase of 8.7 percentage points year-on-year and 0.2 percentage points quarter-on-quarter, attributed to product mix optimization and effective supply chain cost control [1][7]. - The company is actively expanding its presence in the high-end smartphone market and the automotive autonomous driving sector, which opens up long-term growth opportunities [2][3]. Revenue and Profitability Forecast - The revenue forecast for 2024 is set at RMB 26.209 billion, with a year-on-year growth of 24.7%, while the net profit is projected to reach RMB 3.409 billion, reflecting a significant increase of 502.8% [6][8]. - The basic earnings per share (EPS) for 2024 is estimated at RMB 2.82, with further growth expected to RMB 3.70 in 2025 and RMB 4.60 in 2026 [6][8]. Market Position and Product Development - The company has made significant progress in the high-end smartphone CIS market, with its OV50H model being adopted by major domestic brands like Huawei and Xiaomi [2]. - The introduction of the OV50K, the world's first smartphone CIS utilizing TheiaCel™ technology, is expected to enhance the company's market share in high-end products [2]. - In the automotive sector, the OX08D10 camera, which employs TheiaCel technology, is positioned to provide higher resolution and lower power consumption for autonomous driving applications [3]. Financial Metrics - The company’s market capitalization stands at approximately RMB 133.89 billion, with a 52-week high of RMB 117.92 and a low of RMB 79.22 [5]. - The average daily trading volume is reported at 20 million shares, with a year-to-date price change of 4.75% [5].