Beijing Jingwei Hirain Technologies (SH:688326) HTSC·2026-01-28 07:25Investment Rating - The report maintains a "Buy" rating for the company with a target price of 184.61 RMB [6][4]. Core Insights - The company is expected to turn a profit in 2025, projecting a net profit attributable to shareholders of between 0.75 billion and 1.1 billion RMB, which exceeds previous forecasts [1]. - The growth in revenue is driven by the release of prior R&D investments, particularly in core electronic products like domain controllers and 5G TBOX, alongside cost reduction and efficiency improvements [2]. - The company is transitioning from a research-driven phase to a product scaling phase, with expectations for revenue and profit recovery in 2026, supported by stable production phases with key clients [3]. Summary by Sections Financial Performance - The company forecasts a revenue increase to 7.51 billion RMB in 2025, with a growth rate of 35.49% compared to the previous year, and further growth to 9.77 billion RMB in 2026 [10]. - The net profit is projected to reach 0.88 billion RMB in 2025, with significant growth to 3.76 billion RMB in 2026, reflecting a 328% increase [10]. Product and Market Development - The company is focusing on high-level intelligent driving products, with collaborations with key clients like Geely and Xiaomi expected to stabilize production and contribute to revenue growth [3]. - The international expansion is ongoing, with partnerships with global manufacturers like Stellantis and Scania, aiming for production deliveries in 2026 [3]. Valuation and Estimates - Revenue forecasts for 2025, 2026, and 2027 have been adjusted to 7.51 billion, 9.77 billion, and 12.02 billion RMB respectively, with corresponding gross margin estimates of 24.3%, 24.9%, and 26.9% [4]. - The report employs a Sum-of-the-Parts (SOTP) valuation method, estimating a net profit of 2.64 billion RMB from hardware and 1.1 billion RMB from software in 2026, leading to a target price adjustment from 145.23 RMB to 184.61 RMB [4].