Guotai Haitong: First gives GPIXEL (03277) a "buy" rating with a target price of HK$112.86.

Guotai Haitong released a research report stating that they have initiated coverage on GPIXEL (03277) with a "buy" rating. The company is a high-end CIS design company specializing in industrial imaging, scientific imaging, professional imaging, and medical imaging. By 2024, both industrial imaging and scientific imaging revenues rank third globally, demonstrating scarce technology and customer barriers. It is predicted that the company's operating revenues for 2026-2028 will be 1.196/1.571/1.916 billion RMB respectively, with net profits attributable to shareholders at 0.482/0.693/0.906 billion RMB respectively, and EPS at 1.08/1.56/2.04 RMB respectively. Using the PE valuation method, companies such as HSMC, STW, Shenyang Fortune Precision Equipment, and Mloptic Corp. have been selected as comparable companies, with the first two belonging to the consumer/automobile CIS chip sector and the latter two belonging to the semiconductor component sector. The average PE of comparable companies in 2027 is 75 times. Considering that the company's semiconductor business has just entered a period of large-scale production, a certain discount is given, giving a valuation PE of 63 times, corresponding to a reasonable valuation of 43.659 billion RMB and a target price of 112.86 Hong Kong dollars. Guotai Haitong's main points are as follows: - Industrial imaging is the main growth axis, scientific imaging builds technological depth, and product structure continues to optimize. - The company achieved operating revenue of 0.857 billion RMB in 2025, a year-on-year increase of 27.30%. In terms of business segments, industrial imaging revenue in 2025 was 0.639 billion RMB, a year-on-year growth of 43.06%, which is the core growth driver. - Industrial automation, domestic substitution, and medical expansion will collectively drive medium to long-term growth. - The company's positioning in the high-end CIS market is evident, benefiting from the trend of semiconductor equipment growth. Risks include lower than expected demand for industrial imaging, fluctuating demand from scientific imaging customers, and macroeconomic risks.