GOODIX(SH:603160) Tai Ping Yang·2025-01-23 01:35Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 15% compared to the CSI 300 index in the next six months [1][18]. Core Insights - The company is acquiring 100% of Yunyinggu Technology to enhance its business portfolio, which is expected to create significant synergies [1][4]. - The company has a stable increase in profitability, primarily focusing on touch and fingerprint chips, which are essential for smart terminals, IoT, and automotive electronics [5]. - The acquisition of Yunyinggu Technology, which specializes in display driver chips, will complement the company's existing product lines and enhance its competitive edge in the market [6]. Financial Performance - For the first half of 2024, the company expects to achieve revenues of CNY 50.33 billion, CNY 60.34 billion in 2025, and CNY 69.54 billion in 2026, with corresponding net profits of CNY 7.02 billion, CNY 8.56 billion, and CNY 10.15 billion [7]. - The revenue growth rates are projected at 30.26% for 2023, 14.18% for 2024, 19.88% for 2025, and 15.26% for 2026 [7]. - The gross margins for touch chips and fingerprint recognition chips are expected to recover, with gross margins of 52.28% and 34.64% respectively for the first half of 2024 [5]. Business Segments - The company's main product lines include touch chips, which accounted for 39.13% of revenue, and fingerprint recognition chips, which accounted for 36.51% in the first half of 2024 [5]. - Yunyinggu Technology's products, including AMOLED display driver chips and Micro-OLED display driver backplane chips, are crucial for meeting the current demands of the smartphone and VR/AR markets [6].