CRM(SH:688396) Orient Securities·2025-05-13 01:54Investment Rating - The report maintains a "Buy" rating for the company with a target price of 52.49 CNY, based on a valuation of 3.0 times the average price-to-book ratio for comparable companies in 2025 [2][5][10]. Core Insights - The company is expected to see significant growth in earnings, with a projected net profit of 919 million CNY in 2025, representing a 21% year-on-year increase. This is part of a broader recovery trend following a substantial decline in previous years [9][10]. - The automotive and AI applications are driving demand growth, with automotive electronics revenue increasing from 19% in 2023 to 21% in 2024. The company is enhancing its market share in key automotive systems through a comprehensive product offering [9][10]. - The company is investing heavily in R&D, with a forecasted increase in R&D expenses, which is expected to support new product development and market competitiveness [9][10]. Financial Summary - Revenue is projected to grow from 10,119 million CNY in 2024 to 14,377 million CNY in 2027, reflecting a compound annual growth rate (CAGR) of approximately 11% [4][12]. - The gross margin is expected to stabilize around 28.8% by 2027, while the net profit margin is projected to improve to 10.8% [4][12]. - The company's return on equity (ROE) is anticipated to rise from 3.5% in 2024 to 6.2% in 2027, indicating improved profitability and efficiency [4][12].