FMSH(SH:688385) Huachuang Securities·2025-03-31 04:35Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 58.8 CNY per share and 37.8 HKD per share for its A and H shares respectively [2][6]. Core Views - The company's profitability is recovering in Q4 2024, with a notable improvement in its FPGA layout. The semiconductor industry is showing signs of stabilization despite facing competitive pressures and economic challenges [2][6]. - The company achieved a revenue of 3.59 billion CNY in 2024, a year-on-year increase of 1.53%, while the gross margin decreased by 5.26 percentage points to 55.95%. The net profit attributable to shareholders was 573 million CNY, down 20.42% year-on-year [6][7]. - In Q4 2024, the company reported a revenue of 907 million CNY, reflecting a year-on-year increase of 13.57% and a quarter-on-quarter increase of 1.91%. The gross margin improved to 58.60%, with a net profit of 145 million CNY, marking a significant year-on-year increase of 109.59% [6][7]. Financial Performance Summary - The company’s total revenue for 2024 was 3.59 billion CNY, with a projected growth to 4.22 billion CNY in 2025, representing a growth rate of 17.5% [7]. - The net profit attributable to shareholders is expected to recover to 805 million CNY in 2025, reflecting a growth rate of 40.6% compared to 2024 [7]. - The earnings per share (EPS) is projected to be 0.98 CNY in 2025, increasing to 1.43 CNY by 2027 [7]. Market Position and Product Development - The company is recognized as a leading domestic FPGA supplier, with a comprehensive product line that includes various series of FPGAs and PSoC products. It is advancing its technology with new generation FPGAs and intelligent SoC platforms [6][7]. - The company is benefiting from the trend of domestic substitution, with new product launches expected to drive future growth [6][7]. Industry Outlook - The semiconductor industry is currently at a low point but is showing signs of recovery, with expectations for improved performance in 2025 driven by high-end applications and market demand [6][7]. - The company’s consumer electronics segment is anticipated to return to growth, particularly in MCU and non-volatile memory sectors, as demand from the smart meter market increases [6][7].