Espressif Systems(SH:688018) Minsheng Securities·2025-10-29 12:00Investment Rating - The report maintains a "Recommended" rating for the company [6] Core Views - The company achieved a revenue of 1.912 billion yuan in the first three quarters of 2025, representing a year-on-year growth of 30.97%. The net profit attributable to the parent company was 377 million yuan, up 50.04% year-on-year [1] - The gross margin for Q3 2025 was 47.97%, an increase of 5.83 percentage points year-on-year, driven by the company's cloud service pricing strategy [2] - The company is experiencing accelerated diversification in its customer base, with the revenue concentration from the top five customers decreasing to 22.6% [3] Summary by Sections Financial Performance - For Q3 2025, the company reported a revenue of 667 million yuan, a year-on-year increase of 23.51%, but a quarter-on-quarter decrease of 3.05%. The net profit for the same period was 116 million yuan, reflecting a year-on-year growth of 16.11% and a quarter-on-quarter decline of 31.07% [1][2] - The projected net profits for 2025-2027 are estimated at 539 million, 717 million, and 939 million yuan, respectively, with corresponding PE ratios of 54, 41, and 31 [3][5] Market Position and Strategy - The company benefits from the increasing digitalization and intelligence penetration across various industries, with a notable growth in non-smart home sectors [2] - The developer ecosystem is expanding, with the number of ESP32 open-source projects on GitHub reaching 115,000 by Q3 2025, indicating a growing community engagement [3] Future Outlook - The company is expected to continue its growth trajectory, supported by the increasing usage of cloud services by downstream customers and the enhancement of its product offerings [2][3]