Nomura expects sales of Gaowei Electronics (01415) to increase 39% year-on-year in the first half of this year.
The Zhitong Finance App learned that Nomura released a research report stating that it maintains the “buy” rating of Gaowei Electronics (01415) and that the target price was raised from HK$18.36 to HK$29.24. The company's net profit for the second half of last year fell 46% year on year to US$29 million, 33% lower than Nomura's forecast.
The bank lowered the Group's earnings estimates, mainly to increase operating expenses in preparation for its penetration into the iPhone rear camera module (CCM). The bank expects the Group's sales to increase 39% year-on-year in the first half of this year. It also believes that starting in the second half of this year, the Group may gain 25% to 35% market share in the periscope lens and rear CCM fields of the iPhone 16 Pro models.
The bank estimates that the iPhone rear CCM market value will be around $19 billion in 2022, and that sales will grow at a compound annual rate of 2% between 2022 and 25. Additionally, management said that automated LiDAR has experienced high pricing pressure and is expected to continue to be pressured this year, but the product line is still expected to maintain a gross profit margin of 10% or more.