Amlogic(688099) Changjiang Securities·2025-05-16 05:21Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company achieved a revenue of 1.53 billion yuan in Q1 2025, representing a year-on-year increase of 10.98% and a quarter-on-quarter increase of 18.93%. The net profit attributable to the parent company was 188 million yuan, with a year-on-year increase of 47.53% but a quarter-on-quarter decrease of 17.52%. The demand driven by smart technology has led to a record high revenue for the same period [2][10]. - The company places a strong emphasis on research and development, with R&D expenses amounting to 359 million yuan in Q1 2025, a year-on-year increase of 9.22%, representing 23.45% of revenue. The sales of smart home chips increased by over 50% year-on-year, with quarterly shipments exceeding 10 million units [10]. - The company is expanding its global market share through various product lines, including S series, T series, A series, and W series chips, which are being adopted in multiple applications such as smart TVs and AIoT devices. This diversification is expected to drive long-term growth [10]. Summary by Sections Financial Performance - In Q1 2025, the company reported revenue of 1.53 billion yuan, a year-on-year increase of 10.98% and a quarter-on-quarter increase of 18.93%. The net profit attributable to the parent company was 188 million yuan, reflecting a year-on-year increase of 47.53% [2][10]. - The overall gross margin for Q1 2025 was 36.23%, with a year-on-year increase of 2.01 percentage points [10]. Research and Development - The company invested 359 million yuan in R&D in Q1 2025, which is 23.45% of its revenue, indicating a strong commitment to innovation [10]. - The sales of smart home chips saw a significant increase, with over 50% growth year-on-year, and the company has shipped nearly 4 million units of chips with self-developed intelligent edge computing units [10]. Product and Market Expansion - The company is actively expanding its product lines and market presence, with S series products gaining significant market share in domestic tenders and T series chips being widely used in smart TVs and other devices [10]. - The A series products are being integrated into various consumer electronics, and the W series chips are expected to be compatible with the company's main SoC platform, enhancing sales opportunities [10]. Future Outlook - The company is projected to achieve net profits of 1.13 billion yuan, 1.46 billion yuan, and 1.78 billion yuan for the years 2025, 2026, and 2027, respectively, indicating a positive growth trajectory [10].