GUOXIN MICRO(SZ:002049) HUAXI Securities·2025-08-19 15:25Investment Rating - The report assigns a "Buy" rating to the company, indicating a positive outlook for its stock performance [4]. Core Insights - The company has shown significant growth in Q2 2025, with a revenue increase of 16% year-on-year and a remarkable 381% increase in net profit compared to the previous quarter [1]. - The demand for specialty integrated circuits (ICs) is recovering, with the company expanding its product lines and entering new application areas such as commercial aerospace [2]. - The company is a leader in the domestic specialty chip market and is expected to benefit from the recovery in specialty demand and the introduction of innovative product lines [4][18]. Summary by Sections Company Overview - The company is a leading player in China's specialty integrated circuit sector, focusing on security chips and specialty IC design and sales. It has over 800 product varieties and is strengthening its market position in key areas such as aerospace and industrial control [11]. Financial Performance - In the first half of 2025, the company achieved a revenue of 30.47 billion yuan, a year-on-year increase of 6.07%, and a net profit of 6.92 billion yuan, down 6.18% year-on-year. Q2 alone saw revenues of 20.21 billion yuan, up 16% year-on-year and 97% quarter-on-quarter [1]. - The projected revenues for 2025-2027 are 63.60 billion yuan, 79.05 billion yuan, and 101.09 billion yuan, respectively, with net profits expected to be 15.20 billion yuan, 23.57 billion yuan, and 34.97 billion yuan [4][12]. Product Development - The company is accelerating product iterations, particularly in the FPGA sector, and has introduced new products in various fields, including aerospace and automotive electronics. The eSIM business is also highlighted as a new growth point [2][3]. - The company maintains a strong market share in smart card chips, with significant advancements in eSIM and automotive chip products [3]. Valuation and Earnings Forecast - The report forecasts earnings per share (EPS) of 1.79 yuan, 2.77 yuan, and 4.12 yuan for 2025, 2026, and 2027, respectively. The price-to-earnings (PE) ratios for the same years are projected to be 45.18, 29.14, and 19.64 [4][18].