Willsemi(603501) 国海证券·2024-10-31 12:49Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1][8]. Core Insights - The company has shown steady growth across its main business segments, with a significant increase in revenue and profit margins in the first three quarters of 2024. Revenue reached 18.908 billion yuan, up 25.38% year-on-year, while net profit attributable to shareholders surged by 544.74% to 2.375 billion yuan [3][4]. - The demand in the smartphone and smart driving markets is recovering, leading to improved profitability. The company has optimized its product and supply chain structures, resulting in a gross margin of 29.61%, an increase of 8.33 percentage points year-on-year [4][5]. - The introduction of high-end camera products is progressing well, with the company being a leading player in the CIS market. The high-end image sensor OV50H has been widely adopted in mainstream high-end smartphones, enhancing the company's market share and profitability [5][6]. Summary by Sections Financial Performance - In Q3 2024, the company achieved a revenue of 6.817 billion yuan, a year-on-year increase of 9.55%, and a net profit of 1.008 billion yuan, up 368.33% year-on-year [3][4]. - The company forecasts revenues of 26.546 billion yuan, 31.291 billion yuan, and 36.967 billion yuan for 2024, 2025, and 2026 respectively, with net profits projected at 2.982 billion yuan, 4.319 billion yuan, and 5.510 billion yuan [6][9]. Market Position - The company is positioned as a leading semiconductor design firm globally, with a strong focus on high-end smartphone markets and the automotive sector's autonomous driving applications [6][9]. - The automotive market is experiencing growth, with global car sales reaching 51.14 million units in the first seven months of 2024, of which 8.86 million were new energy vehicles, representing a market share of 17.3% [5][6].