SG Micro Corp(SZ:300661) HTSC·2025-04-30 08:04Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company is expected to achieve revenue of 3.35 billion RMB in 2024, with a year-on-year growth of 27.96%, and a net profit of 500 million RMB, reflecting a year-on-year increase of 78.17% [1][2] - The semiconductor industry is entering an upward cycle, with consumer demand recovering first, followed by industrial and automotive sectors [2][3] - The company has a strong product portfolio with over 5,900 items across 34 categories, indicating good customer expansion [1][3] Summary by Sections 2024 Review - The company's revenue from power management products reached 2.18 billion RMB, up 24.95% year-on-year, accounting for 65.18% of total revenue, with a gross margin of 47.81% [2] - Signal chain products generated 1.17 billion RMB in revenue, a 33.99% increase year-on-year, with a gross margin of 58.30% [2] - The overall gross margin for 2024 was 51.46%, an increase of 1.86 percentage points, primarily due to product mix optimization [2] 2025 Outlook - The company expects to achieve revenue of 4.08 billion RMB and a net profit of 609.8 million RMB in 2025, with year-on-year growth rates of 21.80% and 21.90% respectively [4][6] - The company has become the controlling shareholder of Ganrui Technology, focusing on the development of magnetic resistance motion sensor chips [3][4] - The report anticipates a comprehensive improvement in industrial demand and positive trends in the automotive sector, benefiting the company as a leading domestic analog device manufacturer [3][4] Valuation - The target price for the company is set at 129 RMB, based on a 15x price-to-sales (PS) ratio for 2025, which is higher than the comparable company average of 9.6x [4][8] - The report projects revenue and net profit for 2026 to be 5.04 billion RMB and 910 million RMB, respectively, with a slight downward adjustment of 0.5% and 0.1% [4]