Sino Wealth(300327) 华泰证券·2025-04-25 12:21Investment Rating - The report maintains a "Buy" rating for the company with a target price of 26.00 RMB [7][4]. Core Views - The company reported a revenue of 319 million RMB in Q1 2025, showing a year-over-year growth of 0.05% but a quarter-over-quarter decline of 12.81%. The net profit attributable to the parent company was 16 million RMB, down 50.08% year-over-year and 64.77% quarter-over-quarter [1][2]. - The decline in net profit is attributed to increased depreciation expenses from the Hefei second headquarters, a reduction in VAT credits, and a drop in gross margin by 1.77 percentage points to 32.09% [1][2]. - Despite current pressures from market competition and product price reductions, the company is expected to gradually recover, aided by new product introductions and collaborations with downstream manufacturers due to U.S. tariff policies [1][4]. Summary by Sections Q1 2025 Review - The company's home appliance business continues to perform well, with a steady increase in market share. The WiFi/BLE Combo MCU launched at the end of 2024 is entering the market promotion phase, with mass production expected by the end of this year [2]. - The lithium battery management chips performed well in the power sector but saw significant declines in the mobile phone segment due to seasonal demand and customer model mix [2]. - The revenue from AMOLED display driver chips also experienced a slight decline due to market demand [2]. - The company has managed to reduce inventory, with a total inventory amount of 591 million RMB at the end of Q1, down 23 million RMB from the end of 2024 [2]. 2025 Outlook - The report anticipates that while downstream demand is entering a peak season, the recovery of gross margins will take time, particularly for AMOLED display driver chips [3]. - The company plans to enhance inventory management to achieve a turnover level of 4 to 5 months by the end of the year [3]. - Current tariff policies are expected to strengthen the company's domestic replacement advantages, and the company is expanding its coverage in downstream sectors, including AI and robotics [3]. Financial Forecasts - The company is projected to gradually recover from its low point, with estimated profits of 178 million RMB, 267 million RMB, and 346 million RMB for 2025, 2026, and 2027 respectively [4][6]. - The report provides a target price of 26.00 RMB based on a 50x P/E ratio for 2025, which is slightly below the industry average of 54x [4][6].