Smartsens Technology (Shanghai) (SH:688213) Great Wall Securities·2024-06-13 03:01Investment Rating - The report upgrades the investment rating to "Buy" based on expected future performance [7][13]. Core Views - The company has turned profitable in Q1 2024, with a significant increase in revenue and net profit driven by demand recovery in downstream markets and improved operational efficiency [3][6]. - The high-end mobile CIS products are expected to create a second growth curve for the company, contributing to its revenue growth [6][7]. Financial Summary - 2023 Performance: The company achieved a revenue of 2.857 billion yuan, a year-on-year increase of 15.08%, and a net profit of 14 million yuan, marking a turnaround from losses [2][3]. - 2024 Q1 Performance: Revenue reached 837 million yuan, up 84.31% year-on-year, with a net profit of 14 million yuan, also indicating a return to profitability [2][3]. - Future Projections: Expected revenues for 2024-2026 are projected at 4.24 billion yuan, 5.64 billion yuan, and 7.06 billion yuan respectively, with corresponding net profits of 425 million yuan, 589 million yuan, and 788 million yuan [2][7]. Business Segments - Smartphone CIS Market: The company’s smartphone CIS products generated 892 million yuan in revenue in 2023, a 50.40% increase, and are positioned to meet the growing demand for high-end imaging capabilities [6][7]. - Automotive Electronics: Revenue from automotive electronics reached 294 million yuan in 2023, a 30.45% increase, indicating strong growth potential in this segment [6][7]. Market Position - The company is recognized as a leader in the smart security CIS market, with a focus on high-end products that cater to the increasing demand for intelligent surveillance solutions [3][6]. - The report highlights the company's strategic partnerships with domestic wafer manufacturers to enhance product offerings and market competitiveness [6][7].