China Merchants Securities: Maintains SmartSens "Buy" investment rating, with revenue and net profit in 25H1 showing significant year-on-year growth

CITIC Securities' research report points out that SmartSens' revenue and net profit in H1 2025 have significantly increased year-on-year, with continuous expansion in mobile phone and automotive businesses. The company expects a net profit attributable to the parent company of 360 to 420 million yuan in H1 2025, a year-on-year increase of 140% to 180%; the net profit attributable to the parent company in Q2 is expected to be 169 to 229 million yuan, a year-on-year increase of 24% to 68% and a quarter-on-quarter decrease of 12% to an increase of 19%, showing significant growth in net profit. The company's high-end smartphone products are entering a harvest period, continuously expanding new customers for flagship smartphones, and the introduction of higher-value new products is expected to drive the smartphone business to maintain high growth rates; the automotive business benefits from the trend of equal rights in intelligent driving, and the high-end automotive parts under research will gradually move towards mass production; AI will open up new markets in downstream machine vision, driving new imaginative space for smart security business. It is recommended to focus on the company's various businesses, especially the customer expansion and market share improvement of high-end smartphone products. Maintain an "Overweight" investment rating