VeriSilicon(SH:688521) Guotou Securities·2025-04-28 15:25Investment Rating - The report maintains an "Add-A" investment rating for the company, with a target price of 104.3 yuan based on an 18x price-to-sales (PS) ratio for 2025 [3][5]. Core Insights - The company reported a revenue of 390 million yuan in Q1 2025, representing a year-on-year increase of 22.49%. The net profit attributable to shareholders was -220 million yuan, with a gross margin of 39.06%, up from 33.34% in Q4 2024. The company continues to invest heavily in research and development, with R&D expenses of 1.247 billion yuan planned for 2024 and 300 million yuan in Q1 2025 [1][2]. - The company is expected to benefit from trends in AIGC (Artificial Intelligence Generated Content), autonomous driving, and Chiplet technologies. The revenue from the consumer electronics sector saw a significant increase of 103.81% year-on-year, accounting for 44.12% of total revenue. The chip design business generated 122 million yuan, up 40.75%, with 89.05% of revenue coming from 28nm and below process nodes [2][3]. Summary by Sections Financial Performance - For 2025, the company is projected to achieve revenues of 2.902 billion yuan, 3.512 billion yuan in 2026, and 4.320 billion yuan in 2027. The net profits are expected to be -385 million yuan in 2025, -189 million yuan in 2026, and a positive 92 million yuan in 2027 [3][10]. - The gross margin is forecasted to be 39.0% in 2025, 40.0% in 2026, and 41.0% in 2027, indicating a gradual improvement in profitability [11]. Market Position and Strategy - The company is positioned as a leading provider of IP and customized chip services, with a first-mover advantage in cloud-side AI, edge-side AI, autonomous driving, and advanced packaging sectors. It has established a strong presence in various fields, including AIGC, data centers, automotive electronics, smart wearables, IoT, and Chiplet technologies [2][3]. - The company has a diverse customer base, with 82 clients in the AIGC sector and significant engagements with major internet companies and automotive chip manufacturers [2][3].