Apple(US:AAPL) SINOLINK SECURITIES·2025-05-05 03:23Investment Rating - The report maintains a "Buy" rating for the company, expecting a price-to-earnings (P/E) ratio of 31, 26, and 23 for FY25, FY26, and FY27 respectively [5]. Core Insights - The company reported FY25Q2 revenue of $95.359 billion, a year-over-year increase of 5.08%, with a gross margin of 47.05% [2]. - Net profit for FY25Q2 was $24.780 billion, reflecting a 4.84% year-over-year growth [2]. - The company anticipates low to mid-single-digit year-over-year revenue growth for FY25Q3, with a projected gross margin of 45.5% to 46.5%, including an additional cost of $900 million due to tariffs [2][4]. Revenue Breakdown - Service business revenue grew by 11.64% year-over-year to $26.645 billion in FY25Q2, with paid subscriptions exceeding 1 billion [3]. - Hardware revenue reached $68.714 billion, a 2.73% year-over-year increase, with specific product revenues as follows: iPhone at $46.841 billion (+1.9%), iPad at $6.402 billion (+15.16%), Mac at $7.949 billion (+6.68%), and wearables at $7.522 billion (-4.94%) [3]. - The launch of the iPhone 16e is expected to drive annual sales growth [3]. Shareholder Returns - The company invested approximately $29 billion in dividends and share buybacks in FY25Q2, with $3.8 billion in dividends and $25 billion in buybacks, repurchasing 108 million shares [3]. - A new $100 billion share buyback program is in place to continue supporting dividends and buybacks [3]. Profit Forecast - The company projects net profits of $96.938 billion, $113.113 billion, and $126.757 billion for FY25, FY26, and FY27 respectively, with corresponding P/E ratios of 31.38, 26.36, and 23.05 [5][9].