WLCSP(SH:603005) Great Wall Securities·2025-09-05 06:07Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index in the next six months [4][19]. Core Viewpoints - The company achieved significant year-on-year growth in H1 2025, with revenue reaching 667 million yuan, up 24.68%, and net profit increasing by 49.78% to 165 million yuan [1][2]. - The company's gross margin improved to 45.08%, up 1.66 percentage points year-on-year, while the net profit margin rose to 23.91%, an increase of 3.20 percentage points [2]. - The semiconductor market is experiencing a recovery, with the global semiconductor market size reaching $346 billion in H1 2025, a year-on-year increase of 18.9% [8]. Financial Performance Summary - Revenue projections for the company show a growth trajectory from 913 million yuan in 2023 to 2,490 million yuan by 2027, with a compound annual growth rate (CAGR) of 21.5% [1]. - Net profit is expected to grow from 150 million yuan in 2023 to 625 million yuan in 2027, reflecting a CAGR of 21.4% [1]. - The company's return on equity (ROE) is projected to improve from 3.8% in 2023 to 11.3% in 2027 [1]. Market and Technology Insights - The company is focusing on advanced packaging technology and expanding its market presence in automotive CIS and emerging applications such as AI glasses and robotics [3]. - The global semiconductor packaging market is expected to grow, with advanced packaging projected to reach $47.6 billion by 2025, driven by demand from smart automotive and AI applications [8]. - The company is enhancing its technological capabilities through strategic partnerships and leading national research projects, which are expected to drive future growth [3].