Willsemi(603501)2024-10-30 08:23Investment Rating - The report maintains an "Accumulate" rating for the company [5][3]. Core Views - The company has achieved record high revenue in Q3 2024, driven by a successful high-end product strategy and a recovery in the consumer market. For the first three quarters of 2024, the company reported revenue of 18.908 billion yuan, a year-on-year increase of 25.38%, and a net profit attributable to shareholders of 2.375 billion yuan, a year-on-year increase of 544.74% [1][5]. - The smartphone market is showing signs of recovery, with the introduction of high-end products. In Q3 2024, the company launched a new 50MP image sensor, which is expected to be mass-produced in Q4 2024, enhancing its presence in flagship smartphones [1][5]. - The automotive market is also a focus for growth, with projections indicating that the number of cameras in domestic passenger vehicles will exceed 100 million by 2025, representing a compound annual growth rate of 17% [2][5]. Summary by Sections Financial Performance - In Q3 2024, the company achieved total revenue of 6.817 billion yuan, marking a historical high for a single quarter, with a year-on-year growth of 9.55% and a quarter-on-quarter growth of 5.73%. The net profit for the same period was 1.008 billion yuan, reflecting a year-on-year increase of 368.33% and a quarter-on-quarter increase of 24.60% [1][5]. - The overall gross margin for the first three quarters of 2024 was 29.61%, an increase of 8.33 percentage points year-on-year, with Q3 gross margin at 30.44%, up 8.66 percentage points year-on-year [1][5]. Market Outlook - The global smartphone shipment volume reached 316.1 million units in Q3 2024, a year-on-year increase of 4.0%, marking five consecutive quarters of growth. The company anticipates that flagship models will upgrade their imaging capabilities with the new 50MP sensor [1][5]. - The company is innovating in the automotive CIS sector, collaborating with Philips to develop in-car driver health monitoring solutions and launching a new automotive vision image sensor, which is expected to enter mass production in the first half of 2025 [2][5]. Earnings Forecast - The company has adjusted its earnings forecast for 2024-2026, expecting revenues of 25.897 billion yuan, 31.112 billion yuan, and 36.859 billion yuan, respectively. The net profit attributable to shareholders is projected to be 3.347 billion yuan, 4.712 billion yuan, and 6.450 billion yuan for the same periods [5][6].