China Post Securities: Upgrades Sirui Pu to a Buy rating

China Post Securities Co., Ltd. Wu Wenji, Wan Wei recently conducted research on Sirui Pu and released the research report “Sustained High Prosperity,” giving Sirui Pu a “Buy” rating.

Sirui Pu (688536)

Event

The company released its 2025 performance forecast, projecting revenue of 2.142 billion yuan in 2025, a 75.65% increase compared to the same period last year; net profit attributable to shareholders of 173 million yuan.

Investment Highlights

High-growth track with volume expansion, integrated chip creation, and cost reduction and efficiency improvements, fully releasing profit elasticity. The company achieved deep business integration through the acquisition of Chuangxinwei, covering four major downstream markets: industrial, automotive, communications, and consumer electronics. The product matrix is further enriched, with deepened cooperation and expanded scenarios with leading customers across various fields. In 2025, revenue is expected to increase by 75.65% year-over-year, with about 611 million yuan in Q4, up 5.05% quarter-over-quarter, marking seven consecutive quarters of sequential growth. Meanwhile, the company implements comprehensive budget management, optimizes R&D resource allocation, and refines expense control. Driven by high revenue growth and cost reduction and efficiency improvements, profit elasticity is fully released, with net profit attributable to shareholders reaching 173 million yuan in 2025, a significant increase of 370 million yuan year-over-year.

Optical module market business continues to grow. The company’s optical module control chips are mainly used for laser and modulator voltage and current bias, monitoring output voltage and current, and providing functions such as general ADC sampling and GPIO multiplexing. They feature small size and high integration, supporting current DAC, voltage DAC, and ADC functions needed in EML, silicon photonics, and other optical module solutions, meeting design requirements for 400G, 800G, and 1.6T optical modules. In 2025, the company’s optical module market business continues to grow, with increased market share of AFE products in the optical module field; in the general and AI server markets, new products such as I3C, multi-channel current, and power collection have begun to ship gradually.

Profit Forecast

We expect the company’s revenue to be 2.14 billion yuan, 2.88 billion yuan, and 3.54 billion yuan in 2025, 2026, and 2027, respectively, with net profit attributable to shareholders of 170 million yuan, 320 million yuan, and 450 million yuan, maintaining a “Buy” rating.

Risk Tips:

Risks of technological iteration and R&D investment falling short of expectations; intensified market competition; industry cyclical fluctuations.

The latest profit forecast details are as follows:

In the past 90 days, 2 institutions have issued ratings for this stock, both rating it as “Buy.”

The above content is compiled by Securities Star based on public information, generated by AI algorithms (Wangxin Suanbei No. 310104345710301240019), and does not constitute investment advice.