Willsemi(603501) 东吴证券·2024-07-25 08:00Investment Rating - The report assigns a "Buy" rating for the company for the first time [1]. Core Views - The company, Weir Shares (韦尔股份), is a leading player in the domestic CIS market, focusing on technological upgrades and high-end product launches, which are expected to drive significant revenue growth [3][10]. - The company is expanding its market share in the image sensor field, particularly in consumer electronics and automotive applications, with a strong emphasis on high-resolution products [3][4]. - The report forecasts substantial increases in revenue and net profit for the years 2024 to 2026, driven by the introduction of high-pixel CIS products in smartphones and automotive sectors [4][15]. Summary by Sections 1. Company Overview and Market Position - Weir Shares has evolved from a semiconductor design company focused on power devices and power ICs to a comprehensive platform with a product layout of image sensors, touch displays, and analog solutions [10][12]. - The company has made strategic acquisitions to enhance its product offerings and market presence, including the acquisition of OmniVision, a top player in the CIS market [10][11]. 2. Growth Drivers - The recovery in consumer electronics demand is expected to boost the company's revenue, with projected revenue for the first half of 2024 estimated between 11.9 billion to 12.18 billion yuan, representing a year-on-year growth of 34.38% to 37.54% [3][15]. - The automotive sector is identified as a key growth area, with the global automotive CIS market projected to grow significantly, benefiting Weir Shares as it expands its high-resolution product offerings [3][4]. 3. Financial Projections - The report predicts the company's net profit to reach 3.37 billion yuan in 2024, 5.06 billion yuan in 2025, and 6.46 billion yuan in 2026, with corresponding P/E ratios of 37, 25, and 19 [4][19]. - The company's revenue for 2023 is expected to be 21.02 billion yuan, reflecting a 4.69% year-on-year increase, following a challenging 2022 [2][19]. 4. Product Development and Innovation - Weir Shares is focusing on high-pixel CIS products, with over 60% of its mobile CIS revenue coming from products with 50 million pixels or more [17][23]. - The company is also investing heavily in R&D, with 29.27 billion yuan allocated in 2023, representing 16.26% of its semiconductor design revenue [21][22]. 5. Market Dynamics - The smartphone market is expected to rebound, with a projected 4% growth in shipments in 2024, which will positively impact the demand for mobile CIS [24][25]. - The competitive landscape shows that Weir Shares holds a 13% market share in the global mobile CIS market, positioning it as a significant player behind Sony and Samsung [26][27].