Core Viewpoint - Goer Microelectronics, a leading company in China's sensor industry, is preparing for an IPO in Hong Kong, aiming to enhance its financial strength and international visibility while facing challenges from market volatility and dependency on major clients [1][4]. Group 1: Company Overview - Goer Microelectronics holds a dominant market share of 43% in the global acoustic sensor market, making it the uncontested leader [1]. - The company is the fifth largest globally and the largest in China for smart sensing interactive solutions, as well as the fourth largest sensor provider worldwide [1]. - Since its inception in 2004, Goer Micro has expanded its product line to over 400 solutions, including acoustic sensors, pressure sensors, and SiP packaging modules [3]. Group 2: Financial Performance - In 2024, Goer Micro's revenue is projected to reach 4.536 billion yuan, with a net profit of 309 million yuan [3]. - Acoustic sensors account for 74.1% of the total revenue in 2024, highlighting the core business focus [3]. - The company has invested 326 million yuan in R&D for 2024 and holds 1,825 patents, including 738 invention patents, making it the company with the most patents in the industry in China [3]. Group 3: Market Context and Challenges - The sensor market is expected to grow significantly due to the explosion of AI-driven smart terminals, positioning Goer Micro favorably for its IPO [4]. - The company faces challenges such as reliance on the consumer electronics market, with approximately 60% of its revenue coming from major client Apple, and dependency on Infineon for high-end chip supplies [4]. - Goer Micro's successful IPO is seen as a representation of China's technological "invisible champions" and a demonstration of the country's innovative capabilities to the world [4].

Investment Rating - The report gives a "Strong Buy" rating for the company, with a target price of 18.80 CNY based on a 20x PE ratio for 2025 [6][10]. Core Viewpoints - The company is positioned as a leading global manufacturer in System in Package (SiP) technology, benefiting from the growing demand in consumer electronics, AI glasses, and the automotive sector. The report anticipates a recovery in growth starting in 2025, driven by new business opportunities in AI and robotics [6][8][10]. Financial Summary - Total revenue projections for 2024A to 2027E are as follows: 60,691 million CNY in 2024, 63,750 million CNY in 2025, 72,976 million CNY in 2026, and 80,259 million CNY in 2027, with respective growth rates of -0.2%, 5.0%, 14.5%, and 10.0% [2]. - Net profit attributable to shareholders is projected to be 1,652 million CNY in 2024, increasing to 2,916 million CNY by 2027, with growth rates of -15.2%, 24.5%, 23.0%, and 15.3% [2]. - Earnings per share are expected to rise from 0.75 CNY in 2024 to 1.33 CNY in 2027 [2]. Company Overview - The company has a stable shareholding structure, with the largest shareholder holding 76.67% of the shares. The management team has extensive industry experience, contributing to the company's strategic execution and operational efficiency [36][37]. - The company operates in six major sectors: wireless communications, consumer electronics, cloud and storage, automotive electronics, industrial, and medical electronics [15][30]. Business Segments - The SiP business is expected to benefit from the increasing demand for lightweight and compact packaging in consumer electronics, particularly in AI glasses and foldable screens [6][8][54]. - The new business initiatives include ASIC chip development and robotics, which are anticipated to become significant growth drivers starting in 2025 [9][10]. Market Position - The company is recognized as a leading player in the SiP market, with a strong focus on high integration and miniaturization technologies, which are crucial for the evolving consumer electronics landscape [6][8][54]. - The report highlights the company's strategic partnerships and technological advancements that position it favorably within the competitive landscape [6][8].