Willsemi(SH:603501) Minsheng Securities·2025-05-07 06:23Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential upside of over 15% relative to the benchmark index [5][11]. Core Insights - The company achieved a record high revenue of 6.472 billion yuan in Q1 2025, marking a year-on-year growth of 14.68% and a quarter-on-quarter decline of 5.13%. The net profit attributable to shareholders reached 866 million yuan, up 55.25% year-on-year but down 8.65% quarter-on-quarter [1]. - The company is benefiting from an optimized product structure and enhanced supply chain efficiency, leading to improved profitability. The gross margin for Q1 2025 was 31.03%, an increase of 3.14 percentage points year-on-year and 2.05 percentage points quarter-on-quarter [1]. - The company is seeing significant growth in its high-end smartphone product share and accelerated penetration in the automotive electronics sector. In 2024, the company generated approximately 9.802 billion yuan from the smartphone market, accounting for 51% of its image sensor revenue, with a year-on-year growth of 26.01% [2]. - The company continues to invest heavily in R&D, with 3.245 billion yuan allocated in 2024, representing 15% of its semiconductor design revenue. This investment supports product upgrades and the development of new products [3]. Financial Forecasts - The company is projected to achieve net profits of 4.39 billion yuan, 5.6 billion yuan, and 7.034 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 37, 29, and 23 [4][8]. - Revenue is expected to grow from 25.731 billion yuan in 2024 to 40.697 billion yuan in 2027, with growth rates of 22.4%, 16.6%, 16.8%, and 16.1% for the respective years [4][9]. - The company’s net profit margin is projected to improve from 12.92% in 2024 to 17.28% in 2027, reflecting enhanced operational efficiency [9].