Summary of Will Semi (OmniVision) Conference Call Company Overview - **Company Name**: Will Semi (re-branded to OmniVision) - **Stock Code**: 603501.SS Key Industry Insights - **Industry Focus**: Camera Integrated Circuits (CIS) for smartphones and automotive applications - **Market Trends**: Increasing adoption of cameras in vehicles and flagship smartphone launches in the second half of the year Core Financial Projections - **2Q25 Revenue Growth**: Expected to grow by +18% YoY to Rmb7.7 billion, continuing the growth trend from 1Q (+15% YoY) [1][3] - **Net Income Growth**: Projected net income growth of +33% YoY to Rmb1.1 billion in 2Q25 [1][3] - **Gross Margin**: Anticipated to be 30.6% in 2Q25, slightly down from 31.0% in 1Q25 due to lower contributions from smartphone CIS during slow seasons [3] Product Developments - **Smartphone CIS**: - New product OV50X with 50MPx sensor to start mass production in 3Q25, targeting flagship Android models [2] - Smartphone CIS expected to contribute 38% of revenues in 2024 [2] - **Automotive CIS**: - Expected to grow due to increased camera adoption in vehicles (from 3-4 cameras to 7-10 cameras per vehicle) [2] - Projected vehicle camera shipments in China to reach 126 million in 2025, growing at a +22% CAGR to 343 million by 2030 [2] Earnings Revisions - **2025-2027 Estimates**: Full-year estimates for revenue and net income remain unchanged, with adjustments made for quarterly seasonality [8] Valuation and Price Target - **12-Month Price Target**: Rmb175.3, based on a 31x 2026E P/E, which is within the company's historical trading range [13][15] - **Current Price**: Rmb125.71, indicating a potential upside of 39.4% [15] Risks to Consider - **Product Expansion**: Risks include slower new product expansion and product mix improvement in smartphone CIS [14] - **Market Demand**: Weaker-than-expected demand in the China smartphone market could impact growth [14] - **Trade Tensions**: Potential impacts from ongoing trade tensions may pose risks to operations [14] Conclusion - **Investment Recommendation**: Maintain Buy rating based on strong growth prospects in both smartphone and automotive CIS segments, supported by new product launches and market trends [1][2][15]