Novosense(SH:688052) HTSC·2025-08-20 10:07Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 256.10 [6][7]. Core Insights - The company reported a significant revenue increase of 79.49% year-on-year, achieving RMB 1.524 billion in H1 2025, with a narrowing net loss of RMB 78.01 million [1][2]. - The automotive electronics sector continues to show robust demand, contributing to the company's revenue growth, particularly in Q2 2025, where revenue reached a new high of RMB 8.07 billion, up 65.83% year-on-year and 12.49% quarter-on-quarter [1][2]. - The company is expanding its product offerings in the automotive electronics space, aiming for comprehensive coverage across various applications [3]. Summary by Sections Financial Performance - In H1 2025, the company achieved revenue of RMB 1.524 billion, a 79.49% increase year-on-year, while the net loss was reduced to RMB 78.01 million [2][4]. - The gross margin improved by 1.31 percentage points to 35.21% year-on-year, driven by an optimized product mix [2][4]. - Automotive electronics sales reached approximately RMB 520 million, growing 82% year-on-year, while the general energy sector saw sales of RMB 800 million, up 79% year-on-year [2]. Product Development - The company has successfully introduced new products in the automotive electronics market, including a safety gate driver for main drives and audio amplifiers, which are now in mass production [3]. - In the general energy sector, the company is benefiting from a recovery in the industrial control sector, with significant growth in AI server power module customers [3]. - The company is also focusing on sensor technology and power management solutions for automotive applications, with several new products entering the sampling phase [3]. Future Outlook - Revenue forecasts for 2025-2027 have been adjusted upwards to RMB 3.202 billion, RMB 4.004 billion, and RMB 4.911 billion, respectively, reflecting a growth rate of 14.2%, 11.6%, and 8.0% [4]. - The net profit estimates for 2025-2027 have been revised to -RMB 94.12 million, RMB 171.60 million, and RMB 466.93 million, indicating a positive trajectory in profitability [4]. - The company is expected to maintain strong growth through both organic and external expansion strategies [4].