USISH(SH:601231) HTSC·2026-02-05 01:46Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 43.00 [5][4]. Core Insights - The company is expected to achieve a revenue of RMB 59.2 billion in 2025, a decrease of 2.5% year-on-year, while the net profit attributable to the parent company is projected to be RMB 1.85 billion, an increase of 12.2% year-on-year, exceeding previous expectations [1]. - The company is accelerating its layout in the optical communication sector, having acquired control of Chengdu Guangchuanglian Technology, which enhances its capabilities in high-speed optical transmission products [3]. - The company is focusing on integrating AI strategies and expanding its business in areas such as optical modules and power distribution units [1]. Revenue Breakdown - Consumer electronics revenue is projected to be RMB 21.3 billion in 2025, up 10.9% year-on-year, becoming the largest revenue source due to increased sales driven by market promotions [2]. - Communication products are expected to generate RMB 18.39 billion, down 11.5% year-on-year, primarily due to reduced product prices from lower material procurement costs [2]. - Automotive electronics revenue is forecasted to decline by 24.5% year-on-year to RMB 4.51 billion, impacted by reduced outsourcing orders from key customers and weak demand [2]. - Medical products are expected to see a revenue increase of 12.8% year-on-year, reaching RMB 0.38 billion [2]. Financial Projections - The company forecasts net profits of RMB 1.85 billion, RMB 2.70 billion, and RMB 3.71 billion for 2025, 2026, and 2027 respectively, with corresponding EPS of RMB 0.77, RMB 1.13, and RMB 1.55 [4]. - The report anticipates a significant growth in data center business revenue due to the release of new production capacity in Vietnam and the integration of Chengdu Guangchuanglian [4]. - The target price adjustment reflects a 38x PE for 2026, compared to a previous target of 35x PE for 2025 [4].