Amlogic(688099) Orient Securities·2025-01-14 03:10Investment Rating - The report maintains a "Buy" rating for the company with a target price of 130.68 CNY based on a 36x PE valuation for 2026 [3][6]. Core Insights - The company is expected to benefit from the AI trend in televisions, with major manufacturers showcasing AI televisions at CES 2025, indicating a growing market for AI-enabled devices [2][10]. - The company's earnings per share (EPS) forecasts for 2024, 2025, and 2026 are 1.94 CNY, 2.71 CNY, and 3.63 CNY respectively, reflecting adjustments in expense ratios and asset impairment losses [3][14]. Financial Performance Summary - Revenue projections for the company are as follows: 6,519 million CNY in 2024, 8,250 million CNY in 2025, and 10,210 million CNY in 2026, with growth rates of 21%, 27%, and 24% respectively [5][17]. - Operating profit is expected to recover significantly, with forecasts of 859 million CNY in 2024, 1,200 million CNY in 2025, and 1,606 million CNY in 2026, showing growth rates of 71%, 40%, and 34% respectively [5][17]. - The net profit attributable to the parent company is projected to be 811 million CNY in 2024, 1,136 million CNY in 2025, and 1,522 million CNY in 2026, with growth rates of 63%, 40%, and 34% respectively [5][17]. - The company's gross margin is expected to stabilize around 37% from 2024 to 2026, while the net margin is projected to improve from 12.4% in 2024 to 14.9% in 2026 [5][17]. Market Position and Competitive Landscape - The company has established deep collaborations with major global television ecosystems, including Google TV and Amazon Fire TV, positioning itself well within the growing AI television market [10][11]. - The introduction of advanced features in AI televisions, such as real-time translation and personalized content, is expected to drive demand for the company's SoC (System on Chip) products [10][12].