Espressif Systems(SH:688018) KAIYUAN SECURITIES·2025-05-07 03:23Investment Rating - The investment rating for the company is "Buy" (maintained) [1][4][12] Core Views - The company has shown significant growth in Q1 2025, achieving a revenue of 558 million yuan, a year-on-year increase of 44%, and a net profit of 94 million yuan, up 74% year-on-year, both marking historical highs for the quarter [3][4] - The company is expected to benefit from favorable policies stimulating demand in the smart home and consumer electronics sectors, with the smart home segment growing by 30% [3][4] - The company is focusing on expanding its product boundaries with a strategy centered on "connection + processing," particularly in the AIoT SoC market, leveraging the increasing demand for RISC-V architecture products [5][4] Financial Summary - Revenue projections for 2025-2027 are set at 2.64 billion yuan, 3.38 billion yuan, and 4.22 billion yuan respectively, with corresponding net profits of 475 million yuan, 673 million yuan, and 899 million yuan [4][6] - The gross margin is expected to improve from 43.4% in Q1 2025 to 45.3% by 2027, while the net profit margin is projected to rise from 18.0% to 21.3% over the same period [6] - The company’s P/E ratios are forecasted to decrease from 51.5 in 2025 to 27.2 in 2027, indicating an attractive valuation as earnings grow [6][4]