Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company has shown strong growth in its camera module business, particularly in the automotive and IoT sectors, with a significant increase in both revenue and profit margins [3][4][5]. - The company reported a revenue of RMB 8.832 billion for the first half of 2025, representing a year-on-year increase of 15.07%, and a net profit of RMB 308 million, which is a remarkable increase of 167.59% [3]. - The average selling price of camera modules has increased by approximately 27.2% year-on-year, driven by the optimization of product structure [4]. Company Overview - The latest closing price is HKD 14.16, with a total market capitalization of HKD 168.44 billion [2]. - The company has a debt-to-asset ratio of 65.06% and a price-to-earnings ratio of 32.96 [2]. Business Segments - The smartphone camera module segment has seen a shift towards high-end specifications, with modules of 32 million pixels and above accounting for about 53.4% of total sales, an increase of 5.5 percentage points year-on-year [4]. - In the non-smartphone sector, the company shipped 8.084 million camera modules for automotive and IoT applications, marking a year-on-year growth of 47.9% [5]. - The fingerprint recognition module business also experienced significant growth, with revenue reaching RMB 830 million, a year-on-year increase of 109.3% [6][8]. Financial Projections - The company is projected to achieve revenues of RMB 19.124 billion, RMB 21.705 billion, and RMB 24.472 billion for the years 2025, 2026, and 2027, respectively [10]. - The net profit forecast for the same years is RMB 745 million, RMB 938 million, and RMB 1.102 billion, indicating strong growth potential [10]. Strategic Developments - The company has deepened its vertical integration in smart vision systems, enhancing its capabilities in smartphone, IoT, and NB sectors through strategic investments [9]. - The company has established partnerships with seven leading automotive Tier 1 manufacturers, which supports its growth in the automotive camera module market [5].

Investment Rating - The report does not explicitly state an investment rating for the ultrasonic fingerprint recognition module industry Core Insights - The ultrasonic fingerprint recognition module market size is projected to grow from 18.45 billion CNY in 2022 to 109.83 billion CNY by 2029, reflecting a compound annual growth rate (CAGR) of approximately 28.5% [8] - The market size for ultrasonic fingerprint recognition modules in smartphones is expected to increase from 10.81 billion CNY in 2021 to 76.88 billion CNY by 2029, indicating a significant growth trajectory [25] - The penetration rate of ultrasonic fingerprint recognition modules in smartphones is anticipated to rise from 5.58% in 2021 to 47.72% by 2029 [16] - The unit value of ultrasonic fingerprint recognition modules is projected to decrease from 56.48 CNY in 2021 to 44.26 CNY by 2029, suggesting a trend towards cost reduction [21] Summary by Sections Market Size - The ultrasonic fingerprint recognition module market size is forecasted to grow significantly, reaching 22.44 billion CNY in 2023 and 26.97 billion CNY in 2024, with further increases in subsequent years [8][9] Smartphone Shipment Volume - China's smartphone shipment volume is expected to show a slight increase from 2.64 billion units in 2022 to 3.64 billion units by 2029, indicating a stable demand for smartphones [12] Penetration Rate - The penetration rate of ultrasonic fingerprint recognition modules in smartphones is projected to increase steadily, reaching 10.71% in 2023 and 12.85% in 2024 [16] Unit Value - The unit value of ultrasonic fingerprint recognition modules is expected to decline gradually, with estimates of 53.14 CNY in 2023 and 51.55 CNY in 2024 [21] Smartphone Application Proportion - The proportion of smartphones utilizing ultrasonic fingerprint recognition modules is expected to remain stable at 70% throughout the forecast period from 2021 to 2029 [30]