ArcSoft(688088) 申万宏源证券·2025-05-20 08:45Investment Rating - The report upgrades the investment rating of the company to "Buy" from "Hold" [8][9]. Core Views - The report emphasizes that the company's technological advantages are underestimated, highlighting its complex technology layers and optimization potential [8][11]. - The company is expected to experience significant revenue growth from 2025 to 2027, with projected revenues of 10.00 billion, 12.57 billion, and 15.94 billion respectively [9]. - The report identifies key growth areas including smart devices, intelligent driving, AI glasses, and smart commercial photography, indicating a bright future for the company [8][10]. Financial Data and Profit Forecast - Total revenue forecast for 2024 is 815 million, with a year-on-year growth rate of 21.6%. For 2025, the revenue is expected to reach 1,000 million, reflecting a growth rate of 22.7% [2]. - The net profit attributable to the parent company is projected to be 177 million in 2024, with a significant increase to 233 million in 2025, representing a growth rate of 32.0% [2]. - Earnings per share are forecasted to be 0.44 yuan in 2024, increasing to 0.58 yuan in 2025 [2]. Market Data - The closing price of the company's stock is reported at 43.90 yuan, with a market capitalization of 17,611 million [3]. - The price-to-earnings ratio is projected to be 76 for 2025, decreasing to 40 by 2027, indicating a favorable valuation trend [2][3]. Key Assumptions - Revenue growth rates for mobile smart terminals are expected to be 11.9%, 13.7%, and 14.9% from 2025 to 2027, while intelligent driving and IoT are projected to grow at rates of 71.5%, 59.8%, and 44.0% respectively [10]. - The company anticipates a stable workforce with a slight increase in personnel, particularly in technical and sales roles [10]. Comparative Valuation - The report suggests a valuation target of 30X price-to-sales ratio, equating to a market cap of 300 billion, which is competitive compared to international peers like Unity and Mobileye [9].