On Tuesday, Goldman Sachs reaffirmed its confidence in Will Semiconductor Co Ltd (603501:CH), maintaining a Buy rating and a price target of RMB154.00. The firm's analyst, Allen Chang, provided insights into the company's performance, anticipating a continued upward trajectory for Will Semiconductor's fourth-quarter 2024 revenues.
Chang projects a 7% quarter-over-quarter and 23% year-over-year increase, reaching RMB7.3 billion. This growth is expected to be fueled by an increase in Chinese smartphone launches during the fourth quarter, as detailed in Goldman Sachs' recent smartphone tracker.
Chang also forecasts a slight improvement in the company's gross margin for the fourth quarter of 2024, estimating it to reach 30.5%, compared to 30.4% in the third quarter of 2024 and significantly higher than the 23.0% recorded in the fourth quarter of 2023. The anticipated margin enhancement is attributed to the improved profitability of Will Semiconductor's CMOS image sensor (CIS), analog, and display driver products.
Goldman Sachs' positive outlook on Will Semiconductor extends beyond the immediate quarter. The firm envisions a robust long-term growth trajectory for the company, driven by a strategic shift towards higher-end CIS products and a strong expansion in the automotive CIS sector. Additionally, new product developments in analog and display driver segments are expected to contribute to Will Semiconductor's growth prospects.
The analyst's commentary underscores the potential for Will Semiconductor to capitalize on market opportunities and strengthen its position within the semiconductor industry. With a focus on product diversification and innovation, the company is poised to meet the evolving demands of its clientele, particularly in the smartphone and automotive sectors.
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