Telink Semiconductor(Shanghai) (SH:688591) Minsheng Securities·2025-03-27 07:41Investment Rating - The report maintains a "Buy" rating for the company, considering the continuous improvement in digitalization and smart penetration in downstream markets [3][5]. Core Insights - The company is expected to achieve a revenue of 230 million yuan in Q1 2025, representing a 43% year-on-year increase, and a net profit of 35 million yuan, marking a return to profitability [1][2]. - The company's high-performance products, including low-power Bluetooth chips and multi-protocol IoT chips, are establishing competitive advantages and commercial barriers [1][2]. - The company is experiencing significant growth in sales volume from major and new customers in the IoT connection and audio markets, leading to record highs in both sales and net profit for Q1 [2][3]. - The gross margin for Q1 2025 is expected to exceed the overall gross margin for 2024, with a projected net profit margin of 15%, up from 11.4% in 2024 [2][3]. Financial Forecasts - The company’s projected revenues for 2024-2026 are 844 million yuan, 1.138 billion yuan, and 1.490 billion yuan, respectively, with growth rates of 32.7%, 34.8%, and 30.9% [4][9]. - The forecasted net profit for the same period is 96 million yuan, 189 million yuan, and 294 million yuan, with growth rates of 93.9%, 96.2%, and 55.0% [4][9]. - The earnings per share (EPS) are expected to rise from 0.40 yuan in 2024 to 1.22 yuan in 2026, with corresponding price-to-earnings (PE) ratios decreasing from 103 to 34 [4][9]. Product Development and Market Expansion - The company is entering a harvest phase for new product lines, with successful launches of Matter over Thread products and AI chips, which have gained recognition from leading domestic clients [2][3]. - The company is expanding into new vertical markets, including smart energy BMS and smart gateways, contributing to revenue growth [3].