Espressif Systems(SH:688018) China Post Securities·2025-06-06 12:25Investment Rating - The investment rating for the company is "Buy" and is maintained [1] Core Views - The company is experiencing continuous improvement in profitability, with Q1 2025 revenue reaching 558 million yuan, a year-on-year increase of 44.08%, and net profit attributable to shareholders of 94 million yuan, up 73.80% year-on-year [4] - The gross margin stands at 43.37%, supported by low-cost inputs and sales growth in non-smart home sectors [4] - The company is expanding its product matrix and customer base, driven by increasing digital penetration and a robust developer ecosystem [5] - The company is also enhancing its software application solutions, including an AIoT cloud platform and Matter solutions, to support new customer development [5] Financial Summary - The latest closing price is 141.18 yuan, with a total market capitalization of 22.1 billion yuan [3] - The company is projected to achieve revenues of 2.61 billion, 3.50 billion, and 4.60 billion yuan in 2025, 2026, and 2027 respectively, with net profits of 450 million, 630 million, and 841 million yuan for the same years [6][8] - The company’s earnings per share (EPS) are expected to grow from 2.17 yuan in 2024 to 5.37 yuan in 2027 [8] - The projected net profit growth rates are 149.13%, 32.77%, and 40.46% for 2025, 2026, and 2027 respectively [8]