WINGTECH(600745) 华创证券·2024-11-10 07:27Investment Rating - Strong Buy (Maintained) [1] Core Views - The company's semiconductor and product integration businesses are expected to rebound after a period of low performance, with profitability improving significantly [1] - The automotive semiconductor cycle is bottoming out, and the company's semiconductor business is poised for growth, especially in the domestic automotive market [1] - The product integration business is expected to turn profitable through strategic focus on high-value customers and cost control measures [1] Business Overview - The company is a global leader in semiconductor and product integration, with a strong presence in both IDM (Integrated Device Manufacturing) and ODM (Original Design Manufacturing) models [15] - The semiconductor business, through its subsidiary Nexperia, is a global leader in automotive semiconductors, with a diverse product portfolio and strong relationships with major automotive OEMs and Tier 1 suppliers [1][15] - The product integration business has been under pressure due to weak demand and high investment, but strategic focus and cost control measures are expected to improve profitability [1][15] Semiconductor Business - The global power semiconductor market is expected to grow, with China being the largest consumer, accounting for 40% of the global market [1][38] - Nexperia, the company's semiconductor arm, is a global leader in power semiconductors, with a strong presence in the automotive sector and a diverse product portfolio [1][15] - The company is investing in high-performance products such as IGBT, SiC, and GaN, which are expected to drive future growth [1][15] Product Integration Business - The product integration business has been under pressure due to weak demand and high investment, but strategic focus on high-value customers and cost control measures are expected to improve profitability [1][15] - The company is focusing on high ASP (Average Selling Price) products and has successfully launched new projects with major customers, including AI PCs and mobile devices [1][15] - Cost control measures and operational efficiency improvements have led to a significant reduction in losses, with the business expected to turn profitable in the near future [1][15] Financial Projections - The company's revenue is expected to grow from 71 233 million in 2024E to 86 396 million in 2026E, with a CAGR of 8 8% [2] - Net profit is expected to grow significantly, from 865 million in 2024E to 4 005 million in 2026E, driven by improvements in both semiconductor and product integration businesses [2] - The company's EPS is expected to increase from 0 70 in 2024E to 3 22 in 2026E, reflecting strong growth in profitability [2] Valuation and Target Price - The company is valued at 30x PE for 2025, with a target price of 77 4 RMB, reflecting its strong market position and asset quality [1][7] - The current price is 45 44 RMB, indicating significant upside potential [3]