Amlogic(688099) 华泰证券·2025-04-21 02:55Investment Rating - The report maintains a "Buy" rating for the company with a target price of 88.90 RMB [7][4]. Core Views - The company achieved a revenue of 1.53 billion RMB in Q1 2025, representing a year-over-year increase of 10.98% and a quarter-over-quarter increase of 18.93%. The net profit attributable to the parent company was 188 million RMB, up 47.53% year-over-year but down 17.52% quarter-over-quarter [1]. - The company expects revenue growth to continue in Q2 2025 and maintains its full-year revenue growth guidance, driven by the launch of new products in the 6nm and 8K segments, as well as the rapid growth of WiFi 6 [1][3]. Summary by Sections Q1 2025 Review - The company's revenue growth in Q1 2025 was primarily due to the rapid increase in smart home demand and the penetration of edge AI technology, with A series shipments exceeding 10 million units and revenue growth over 50% year-over-year. WiFi chip shipments also saw a year-over-year increase of over 35%, with WiFi 6 2*2 shipments reaching 25% of total shipments [2]. 2025 Outlook - The company has launched a restricted stock incentive plan for 2025, aiming for significant growth in wireless connection and visual system chip shipments, with targets set for 2,392 million units in 2025, reflecting a growth rate of approximately 50% per year. The S series is expected to benefit from a recovering domestic set-top box market, while the T series aims to increase its market share in international TV ecosystems [3]. Financial Projections - The company forecasts net profits attributable to the parent company of 1.07 billion RMB, 1.38 billion RMB, and 1.74 billion RMB for 2025, 2026, and 2027 respectively, with year-over-year growth rates of 29.83%, 29.24%, and 26.46% [6][4]. The expected revenue for 2025 is 7.19 billion RMB, reflecting a year-over-year growth of 21.30% [6]. Valuation Metrics - The report assigns a 35x price-to-earnings (P/E) ratio for 2025, compared to a peer average of 42.5x, leading to a target price of 88.90 RMB, down from a previous target of 99.8 RMB [4][8]. The company's market capitalization is approximately 28.73 billion RMB [8].