Smartsens Technology (Shanghai) (SH:688213) Huachuang Securities·2025-12-28 13:30Investment Rating - The report gives a "Strong Buy" rating for the company, with a target price of 124.5 CNY based on a 35x PE for 2026 [6][9]. Core Insights - The company is positioned as a leading supplier in the CIS (CMOS Image Sensor) market, focusing on the integration of "smart security, smartphones, and automotive electronics" for collaborative growth [6][8]. - The report highlights the company's successful transition from a focus on security to a diversified business model that includes smartphones and automotive applications, showcasing significant growth potential [7][8]. - The anticipated approval of L3 autonomous driving is expected to accelerate the deployment of intelligent driving technologies, further driving demand for the company's products [6][8]. Financial Summary - Projected total revenue for 2024 is 5,968 million CNY, with a year-on-year growth rate of 108.9%. By 2027, revenue is expected to reach 15,142 million CNY, with a growth rate of 23.9% [2]. - The net profit attributable to shareholders is projected to be 393 million CNY in 2024, with an astonishing growth rate of 2,662.8%. By 2027, net profit is expected to reach 1,902 million CNY, with a growth rate of 32.9% [2]. - Earnings per share (EPS) are expected to increase from 0.98 CNY in 2024 to 4.73 CNY in 2027, reflecting strong profitability growth [2]. Business Development - The company has established itself as a global leader in the security CIS market, with a significant market share and a strong customer base. It has successfully expanded into the smartphone and automotive sectors, achieving notable breakthroughs [6][14]. - The automotive electronics segment has shown remarkable growth, with a year-on-year increase of 107.97% in the first half of 2025, driven by the demand for advanced driver-assistance systems (ADAS) [6][14]. - The smartphone business has become the largest revenue contributor, with a year-on-year growth of 40.49% in the first half of 2025, reflecting the successful launch of high-end products [6][14]. Market Trends - The report identifies two key drivers for the CIS market: structural upgrades in downstream applications such as machine vision and automotive, and the opportunity for domestic manufacturers to replace international competitors due to strategic shifts by major players [7][8]. - The global CMOS sensor market is expected to grow from 19 billion USD in 2023 to 29.6 billion USD by 2029, with a compound annual growth rate (CAGR) of 7.67% [41][42]. - The smartphone segment remains the primary application for CMOS sensors, accounting for over 60% of the market, while automotive and security sectors are also experiencing rapid growth [41][42].