Investment Rating - The report maintains a rating of "Accumulate" for the company [8] Core Views - The company achieved a record high revenue in Q2 2025, with a revenue of 8.07 billion yuan, representing a quarter-on-quarter increase of 12.49% [2][9] - The company is positioned as a leader in domestic automotive-grade analog chips, with a comprehensive product matrix that includes signal chains, power management, and sensors [3] - The average selling price (ASP) of mass-produced products is expected to increase from approximately 1300 yuan to 1500 yuan by the end of 2025 [3] Financial Summary - Revenue projections for the company are as follows: - 2023A: 1,311 million yuan - 2024A: 1,960 million yuan - 2025E: 3,154 million yuan - 2026E: 3,715 million yuan - 2027E: 4,652 million yuan - Year-on-year growth rates for revenue are projected to be: - 2023A: -21.5% - 2024A: 49.5% - 2025E: 60.9% - 2026E: 17.8% - 2027E: 25.2% [1] - The net profit attributable to the parent company is projected as follows: - 2023A: -305 million yuan - 2024A: -403 million yuan - 2025E: -27 million yuan - 2026E: 137 million yuan - 2027E: 369 million yuan - Year-on-year growth rates for net profit are projected to be: - 2023A: -221.9% - 2024A: -31.9% - 2025E: 93.3% - 2026E: 608.1% - 2027E: 169.1% [1][3] Product Performance - The company's three main products saw revenue growth in Q2 2025: - Signal chain: 3.05 billion yuan (38% of total revenue), year-on-year increase of 18% - Power management: 2.68 billion yuan (33% of total revenue), year-on-year increase of 53% - Sensors: 2.29 billion yuan (28% of total revenue), year-on-year increase of 328% [2][3]

Investment Rating - The report maintains a "Buy" rating for the company [2][5][8] Core Views - The company reported a revenue of RMB 25.731 billion in 2024, representing a year-over-year increase of 22%. The gross margin improved to 29.4%, up by 7.7 percentage points [3][8] - The growth in revenue is primarily driven by the mobile and automotive CIS segments, while the DDIC revenue and gross margin are under short-term pressure. The company is steadily advancing in automotive-grade analog products [3][8] - The company plans to launch the OV50X, a high-end mobile CIS product, in Q3 2025, which is expected to enhance its product line [8] Summary by Sections Financial Performance - The company’s revenue for 2024 is projected at RMB 25.731 billion, with a growth rate of 22.4% for 2024 and expected growth rates of 14.7%, 11.0%, and 9.2% for 2025, 2026, and 2027 respectively [7][11] - The EBITDA for 2024 is estimated at RMB 4.244 billion, with a significant increase in net profit to RMB 3.323 billion, reflecting a growth rate of 498% [7][11] - The latest diluted EPS is projected to be RMB 2.73 for 2024, with further increases to RMB 3.62 and RMB 4.19 in 2025 and 2026 respectively [7][11] Business Segments - The CIS business generated RMB 191.90 billion in revenue for 2024, with a year-over-year growth of 24%. The automotive segment saw a 30% increase in revenue [8] - The DDIC business faced a revenue decline of 18% in 2024, with a gross margin of 8.1%. However, the company is developing new products to address market challenges [8] - The analog business reported a revenue increase of 23% in 2024, with a gross margin of 35.2% [8] Valuation - The company’s market capitalization is approximately RMB 151.2 billion, with corresponding PE ratios of 34.3, 29.7, and 26.6 for 2025, 2026, and 2027 respectively [5][7] - The report indicates a slight downward adjustment in EPS estimates for 2025 and 2026 due to declining margins in DDIC and analog businesses [5][7]