Investment Rating - The investment rating for the company is "Buy" (首次) [5] Core Views - The report highlights that the company is expected to benefit from government subsidies and the upgrade of mobile optical products, which will drive profit elasticity. The automotive Advanced Driver Assistance Systems (ADAS) and Extended Reality (XR) are anticipated to boost the valuation [5][6] - Revenue projections for 2024-2026 are estimated at 16.4 billion, 19.3 billion, and 20.8 billion RMB, representing year-on-year growth of 31%, 18%, and 8% respectively. Corresponding net profits are projected at 310 million, 640 million, and 790 million RMB, with year-on-year growth of 274%, 105%, and 23% respectively [5][6] Summary by Sections Company Overview - The company is a leading manufacturer of high-end camera modules and fingerprint recognition modules for smart mobile devices, with a focus on the mid-to-high-end market [13][15] - In 2023, the company's revenue was 12.53 billion RMB, a decrease of 9% year-on-year, with a net profit of 82 million RMB, down 52% year-on-year [13][15] Mobile Optical Upgrade Trends - The mobile optical upgrade trend is expected to continue into 2025, benefiting from government subsidies that will enhance the production capacity of mid-range products. The company's camera module gross margin is projected to improve from 3.6% in H1 2023 to over 7% in H2 2024 [6][7] - The company’s camera module gross margin is expected to reach approximately 8% for mobile modules in 2025 [6] Automotive and IoT Business Growth - The automotive camera module business is entering an acceleration phase, with sales increasing over 15 times year-on-year in H1 2024. The total production capacity has surpassed 1 million units per month [7][60] - The IoT product line is developing across four areas, including consumer drones and XR optical products, with significant progress in customer diversification [62] Financial Forecast - The company is projected to achieve revenues of 16.4 billion, 19.3 billion, and 20.8 billion RMB for 2024-2026, with corresponding net profits of 310 million, 640 million, and 790 million RMB [8][6] - The gross margin is expected to improve to 6%, 8%, and 9% for the years 2024-2026, reflecting the positive impact of product upgrades and increased production efficiency [8][6]
丘钛科技：港股公司首次覆盖报告：手机光学驱动利润弹性，汽车及XR提振估值-20250310