GalaxyCore (SH:688728) HTSC·2025-04-29 08:55Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 18.00 [6][4]. Core Views - The company is expected to see revenue growth driven by mobile phone sales, but faces intense competition leading to a decline in profit margins [2][4]. - The company reported a revenue of RMB 6.38 billion for 2024, a year-on-year increase of 36%, but a decrease in gross margin to 22.8% [1][2]. - The company anticipates that its 50M high-resolution products will gradually enter mass production in its own wafer factory in the second half of 2025 [3][4]. Summary by Sections Financial Performance - In 2024, the company's mobile CIS product revenue is projected to be RMB 3.6 billion, accounting for 56% of total revenue, with a gross margin of 21% [2]. - The company reported a net profit of RMB 1.9 billion for 2024, a significant increase of 287% year-on-year, although below market expectations [1][4]. - For Q1 2025, the company achieved revenue of RMB 1.52 billion, a year-on-year increase of 18%, but reported a net loss of RMB 51.73 million [1][3]. Revenue Projections - The company expects to generate approximately RMB 1 billion in revenue from its 50M products in 2025, with total revenue projected to exceed RMB 10 billion from various product lines [3][4]. - The company’s inventory reached RMB 6.22 billion by Q1 2025, primarily due to production preparations for mobile CIS products [2]. Valuation Metrics - The report projects the company's net profit for 2025, 2026, and 2027 to be RMB 2.0 billion, RMB 2.5 billion, and RMB 3.1 billion respectively [4][10]. - The company is valued at an EV/EBITDA multiple of 35.2x for 2025, aligning with comparable companies in the industry [4][14].