Espressif Systems(SH:688018) Changjiang Securities·2025-05-03 01:14Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company reported a revenue of 557 million yuan in Q1 2025, representing a year-on-year increase of 44.08% and a quarter-on-quarter increase of 2.00%. The net profit attributable to the parent company was 94 million yuan, with a year-on-year increase of 73.80% and a quarter-on-quarter increase of 6.23% [5][11]. - The growth in multiple application areas continues, with Q1 revenue showing sustained growth both year-on-year and quarter-on-quarter [5][11]. - The company's gross margin was 43.37%, reflecting a year-on-year increase of 1.44 percentage points, although it decreased by 3.48 percentage points quarter-on-quarter [11]. - The company is focusing on R&D, with R&D expenses amounting to 126 million yuan in Q1 2025, a year-on-year increase of 21.52% [11]. - The product matrix is being expanded, with 12 different product models launched, covering mature, growing, and emerging phases, laying a solid foundation for long-term growth [11]. - The company is recognized for its IoT technology and has established a strong developer ecosystem, enhancing its long-term growth prospects [11]. Financial Summary - For the fiscal year 2025, the projected net profits attributable to the parent company are 472 million yuan, 687 million yuan, and 941 million yuan for the years 2025, 2026, and 2027 respectively [11]. - The company expects to maintain a gross margin of around 43% for the upcoming years [18]. - The earnings per share (EPS) are projected to be 4.21 yuan, 6.12 yuan, and 8.39 yuan for the years 2025, 2026, and 2027 respectively [18].