USISH(601231) Huachuang Securities·2025-05-25 00:20Investment Rating - The report gives a "Strong Buy" rating for the company, with a target price of 18.80 CNY based on a 20x PE ratio for 2025 [6][10]. Core Viewpoints - The company is positioned as a leading global manufacturer in System in Package (SiP) technology, benefiting from the growing demand in consumer electronics, AI glasses, and the automotive sector. The report anticipates a recovery in growth starting in 2025, driven by new business opportunities in AI and robotics [6][8][10]. Financial Summary - Total revenue projections for 2024A to 2027E are as follows: 60,691 million CNY in 2024, 63,750 million CNY in 2025, 72,976 million CNY in 2026, and 80,259 million CNY in 2027, with respective growth rates of -0.2%, 5.0%, 14.5%, and 10.0% [2]. - Net profit attributable to shareholders is projected to be 1,652 million CNY in 2024, increasing to 2,916 million CNY by 2027, with growth rates of -15.2%, 24.5%, 23.0%, and 15.3% [2]. - Earnings per share are expected to rise from 0.75 CNY in 2024 to 1.33 CNY in 2027 [2]. Company Overview - The company has a stable shareholding structure, with the largest shareholder holding 76.67% of the shares. The management team has extensive industry experience, contributing to the company's strategic execution and operational efficiency [36][37]. - The company operates in six major sectors: wireless communications, consumer electronics, cloud and storage, automotive electronics, industrial, and medical electronics [15][30]. Business Segments - The SiP business is expected to benefit from the increasing demand for lightweight and compact packaging in consumer electronics, particularly in AI glasses and foldable screens [6][8][54]. - The new business initiatives include ASIC chip development and robotics, which are anticipated to become significant growth drivers starting in 2025 [9][10]. Market Position - The company is recognized as a leading player in the SiP market, with a strong focus on high integration and miniaturization technologies, which are crucial for the evolving consumer electronics landscape [6][8][54]. - The report highlights the company's strategic partnerships and technological advancements that position it favorably within the competitive landscape [6][8].