USISH(SH:601231) Guotou Securities·2025-10-28 15:38Investment Rating - The investment rating for the company is "Buy-A" with a target price of 32.7 CNY, maintaining the rating [5]. Core Insights - The company reported a revenue of 16.427 billion CNY in Q3 2025, a year-on-year decrease of 1.16%, while the net profit attributable to shareholders was 625 million CNY, an increase of 21.98% [1]. - The company is expected to benefit from the AI-driven demand in the market, particularly in the SiP (System in Package) business, as it supplies modules for Apple products and has entered the North American AI glasses market [2]. - The AI accelerator card segment is experiencing significant growth due to increased production capacity and new product developments, which are expected to drive overall demand for the company's solutions [3]. Financial Performance - The company forecasts revenues of 62.846 billion CNY, 67.644 billion CNY, and 72.310 billion CNY for 2025, 2026, and 2027 respectively, with net profits of 1.962 billion CNY, 2.398 billion CNY, and 2.823 billion CNY for the same years [9]. - The projected compound annual growth rate (CAGR) for the global SiP market is 7.2%, with the market size expected to grow from 13.34 billion USD in 2025 to 24.56 billion USD by 2034 [2]. - The company’s earnings per share (EPS) is projected to be 0.89 CNY in 2025, increasing to 1.28 CNY by 2027 [10]. Market Position and Strategy - The company is positioned as a leading participant in the SiP module and advanced packaging technology sectors, benefiting from the trends of smart consumer electronics and integrated connectivity [2]. - The collaboration with ASE Group on server power modules is a strategic move to enter the more valuable advanced packaging market [3]. - The company is actively developing new product lines, including power modules and AI server motherboards, to enhance its product matrix [3].