GalaxyCore (SH:688728) China Post Securities·2025-10-17 08:43Investment Rating - The report maintains a "Buy" rating for the company GeKowei (688728) [2][9] Core Insights - The company has successfully transformed into a Fab-Lite model, significantly enhancing its operational cash flow and product competitiveness. In H1 2025, the company achieved revenue of 3.636 billion yuan, a year-on-year increase of 30.33%, with Q2 revenue reaching a record high since its IPO, up approximately 39% from Q1. The net profit attributable to shareholders was 30 million yuan [5][6][15] - The company is focusing on high-pixel products, with the revenue share of mobile CIS (CMOS Image Sensors) increasing. In H1 2025, mobile CIS accounted for 60.88% of total revenue, with products of 13 million pixels and above generating over 1 billion yuan, representing about 46% of mobile CIS revenue [6][15] - The self-owned factory is shifting entirely to high-pixel products, with the production capacity for 32 million and 50 million pixel products fully utilized. This transition is expected to enhance the company's integrated competitive capabilities and profitability [7][15] Financial Projections - The company is projected to achieve revenues of 7.81 billion yuan, 10 billion yuan, and 12 billion yuan in 2025, 2026, and 2027, respectively. The net profit attributable to shareholders is expected to be 200 million yuan, 500 million yuan, and 1 billion yuan for the same years [9][11][19] - The EBITDA for the years 2025, 2026, and 2027 is forecasted to be 1.805 billion yuan, 2.243 billion yuan, and 2.883 billion yuan, respectively [11][19] Relative Valuation - The company is recognized as a leading semiconductor and integrated circuit design enterprise in China, primarily engaged in the R&D, design, manufacturing, and sales of CMOS image sensors and display driver chips. The relative valuation analysis indicates a projected PB (Price to Book) ratio of 4.47x for 2025 [14][15]