Amlogic(SH:688099) Orient Securities·2025-08-14 15:23Investment Rating - The report maintains a "Buy" rating for the company with a target price of 119.79 CNY, based on a 33x PE ratio for 2026 [3][11][6]. Core Views - The company is expected to benefit from high-end product development and category expansion, which will drive growth [2][10]. - The company achieved record revenue in Q2 2025, with a total revenue of 3.33 billion CNY and a net profit growth of 37% year-on-year [10]. - The S and T series chips are advancing towards high-end markets, with significant sales growth anticipated [10]. - The company is seizing new market opportunities with rapid product launches, particularly in the Wi-Fi and smart home sectors [10]. Financial Summary - Revenue projections for 2025-2027 are 7,637 million CNY, 9,374 million CNY, and 11,294 million CNY, respectively, with year-on-year growth rates of 29%, 23%, and 20% [5]. - Operating profit is expected to grow from 1,194 million CNY in 2025 to 2,038 million CNY in 2027, with growth rates of 40%, 34%, and 27% [5]. - Net profit attributable to the parent company is projected to reach 1,140 million CNY in 2025, 1,530 million CNY in 2026, and 1,944 million CNY in 2027, with growth rates of 39%, 34%, and 27% [5]. - Earnings per share are forecasted to be 2.71 CNY in 2025, 3.63 CNY in 2026, and 4.62 CNY in 2027 [5][11].