Summary of the Conference Call for 澜起科技 (LQK Technology) Company Overview - **Company**: 澜起科技 (LQK Technology) - **Industry**: Semiconductor, specifically focusing on memory interconnect chips and related technologies Key Financial Highlights - **Revenue**: 40.58 billion RMB for the first three quarters, up approximately 58% year-on-year [2][4] - **Net Profit**: 16.32 billion RMB, a year-on-year increase of about 67% [2][4] - **Adjusted Net Profit**: 21.44 billion RMB, up approximately 112% after excluding share-based payment expenses [2][4] - **Operating Cash Flow**: 16.01 billion RMB, indicating strong operational quality and cash flow [2][4] - **Return on Equity (ROE)**: 13.6% [2][4] Product Line Performance - **Interconnect Chip Revenue**: 38.32 billion RMB, a year-on-year increase of about 61%, with a gross margin of 64.83%, up 2.48 percentage points [2][4] - **Server Platform Revenue**: 2.18 billion RMB, achieving double-digit growth [2][4] - **Third Quarter Performance**: Revenue of 14.24 billion RMB, up 57.22% year-on-year; net profit of 4.73 billion RMB, up 22.94% year-on-year [4] Share-Based Payment Expenses - **Increase in Expenses**: Share-based payment expenses rose significantly to 3.53 billion RMB due to a management incentive plan linked to stock performance, compared to 110 million RMB in the same period last year [5][6] - **Impact on Net Profit**: After accounting for these expenses, the adjusted net profit for Q3 was 8.11 billion RMB, reflecting a year-on-year growth of 105.78% [5][6] DDR5 Product Development - **DDR5 Product Iteration**: The company is advancing in the DDR5 space with six planned sub-generation products; the third-generation RCD chip sales have surpassed the second generation [3][7] - **Market Position**: LQK Technology holds a leading market share of approximately 37% in the global memory interconnect chip market for 2024 [3][13] Market Trends and Future Outlook - **AI Demand**: The AI-driven storage supercycle is expected to significantly increase server memory module demand, with a projected compound annual growth rate of about 10% until 2030 [3][10] - **Market Expansion**: The DDR5 penetration rate is expected to rise from 50% in 2024 to over 85% in 2025, with DDR6 commercialization anticipated around 2029-2030 [10] - **PCIe Retimer Market Growth**: The PCIe Retimer market is projected to grow from 4 billion USD in 2024 to nearly 19 billion USD by 2030, with LQK Technology aiming to capture a larger share [14] Competitive Landscape - **Market Share**: LQK Technology's revenue in the interconnect chip sector is reportedly more than double that of North American competitors [21] - **Emerging Technologies**: The company is actively involved in the development of CXL high-speed interconnect technology, which is expected to reach a market size of 1.7 billion USD by 2030 [15] New Product Launches - **Recent Products**: New products include the SIXXL3.1 MXC chip, clock buffers, and spread spectrum oscillators, which are expected to enhance the company's product offerings [8][9] Strategic Goals - **Long-term Vision**: The company aims to become a leading global designer of all interconnect chips, focusing on enhancing its competitive edge in memory interconnect, PCIe, and CXL interconnect fields [18] Conclusion - **Growth Drivers**: The company is well-positioned to benefit from the increasing demand for high-performance memory interconnect solutions driven by AI and cloud computing trends, with a strong focus on innovation and market expansion [26][27]

Core Insights - The foreign public funds have achieved significant excess returns due to proactive industry positioning and stable investment strategies, with some funds reporting returns exceeding 50% year-to-date [1][2] Group 1: Fund Performance - BlackRock Advanced Manufacturing Fund has a year-to-date return of 66.44%, with a heavy concentration in the manufacturing sector, accounting for 92.52% of its stock investments [2] - The top ten holdings of the BlackRock fund include companies like CATL and Hikvision, with notable stock price increases such as 176.76% for Zhongji Xuchuang [2] - The Robeco Resource Select Fund has achieved a year-to-date return of 79.00%, diversifying its investments across materials, mining, and energy sectors [2] Group 2: Market Outlook - Fund managers maintain a positive outlook for the fourth quarter, expecting low interest rates and ample liquidity to support the A-share market's medium to long-term performance [1][3] - Concerns about geopolitical factors and overseas policy rhythms may cause short-term disruptions, but the overall sentiment remains optimistic for quality technology and resource assets [3][5] - The managers of the BlackRock fund believe that the current low-growth macro environment will anchor a low-interest-rate scenario, pushing investors towards riskier assets with positive cash flows [4] Group 3: Strategic Adjustments - The funds have maintained relatively high positions while making flexible adjustments based on market changes, focusing on sectors like electronics and power equipment [3] - The Allianz China Select Fund has a year-to-date return of 54.48%, with significant holdings in manufacturing and healthcare, reflecting confidence in China's technological innovation [3] - The Robeco fund has strategically included upstream industries related to the current technology innovation cycle, aiming for future gains [5][6]

Core Viewpoint - Multiple listed companies in the A-share market have recently increased their share repurchase plans, either by raising the repurchase scale or the price ceiling, to convey confidence to the market [1][2]. Group 1: Repurchase Plan Adjustments - In October, a peak of repurchase plan adjustments was observed, with companies like SF Holding, Lanke Technology, and Sanhua Intelligent Control making significant changes [2]. - SF Holding announced an increase in its repurchase fund from "not less than 500 million yuan and not exceeding 1 billion yuan" to "not less than 1.5 billion yuan and not exceeding 3 billion yuan," extending the implementation period to 12 months [2]. - As of October 31, SF Holding had repurchased approximately 12.4 million shares for a total amount of about 500 million yuan [2]. Group 2: Price Ceiling Adjustments - Companies are increasingly adjusting their repurchase price ceilings to ensure the smooth implementation of their plans, with Sanhua Intelligent Control raising its ceiling from 35.75 yuan/share to 60.00 yuan/share [3]. - The stock price of Sanhua Intelligent Control has doubled since the announcement of its repurchase plan, reflecting a significant increase from 23.29 yuan/share to 49.93 yuan/share [3]. - Other companies, such as Lanke Technology and Ningbo Huaxiang, have also raised their repurchase price ceilings due to stock prices exceeding the original limits [3]. Group 3: Characteristics of Repurchase Adjustments - The adjustments in repurchase plans exhibit three notable characteristics: significant adjustment amplitudes, rapid implementation, and multiple adjustments within the year [4]. - For instance, Ningbo Huaxiang raised its price ceiling from 19.69 yuan/share to 51.42 yuan/share, an increase of over 160% [4]. - Companies like Macro Construction quickly implemented their adjusted repurchase plans, with Macro Construction announcing a repurchase shortly after adjusting its price ceiling [4]. Group 4: Multiple Repurchase Plans - Some companies have launched multiple repurchase plans within the year, such as Lanke Technology, which adjusted its price ceiling for the second time in October [5]. - Lanke Technology's first repurchase plan was completed in September, with an actual repurchase amount of 200 million yuan [5]. - Other companies, like Hunan Silver, have also adjusted their repurchase price ceilings multiple times throughout the year, reflecting a proactive approach to capital management [5].

Core Viewpoint - The company has announced its second share repurchase plan for 2025, with adjustments made to the repurchase price cap and progress updates on the repurchase activities [3][4][5]. Group 1: Share Repurchase Plan - The company approved the second share repurchase plan on July 7, 2025, allowing for the repurchase of A-shares at a price not exceeding RMB 118 per share, with a total repurchase fund between RMB 2 billion and RMB 4 billion [3]. - The repurchase period is set for 12 months following the approval from the shareholders' meeting [3]. - The maximum repurchase price was adjusted to RMB 117.80 per share starting from October 22, 2025, due to a semi-annual equity distribution [4]. Group 2: Repurchase Progress - As of October 31, 2025, the company has repurchased 700,000 shares, representing 0.06% of the total share capital, with a total expenditure of approximately RMB 96.53 million [5]. - The highest purchase price recorded was RMB 147.88 per share, while the lowest was RMB 136.47 per share [5]. Group 3: Compliance and Disclosure - The company will adhere to relevant regulations regarding share repurchase and will make timely disclosures about the progress of the repurchase activities [7].

Core Viewpoint - The company has initiated its second share repurchase plan for 2025, with specific details regarding the repurchase price and total funds allocated for the buyback [3][4]. Group 1: Repurchase Plan Overview - The second share repurchase plan was approved on July 7, 2025, allowing the company to buy back shares using its own funds through the Shanghai Stock Exchange [3]. - The repurchase price is capped at RMB 118 per share, with a total fund allocation between RMB 2 billion and RMB 4 billion [3]. - The repurchase period is set for 12 months following the approval from the shareholders' meeting [3]. Group 2: Adjustments to Repurchase Plan - Following a semi-annual equity distribution, the maximum repurchase price was adjusted from RMB 118 to RMB 117.80 per share starting October 22, 2025 [4]. - On October 30, 2025, the board approved an increase in the maximum repurchase price to RMB 200 per share, while keeping other aspects of the repurchase plan unchanged [4]. Group 3: Repurchase Progress - As of October 31, 2025, the company has repurchased 700,000 shares, representing 0.06% of the total share capital, with a total expenditure of approximately RMB 96.53 million [6]. - The highest purchase price recorded was RMB 147.88 per share, while the lowest was RMB 136.47 per share [6].

Core Viewpoint - Foreign public funds are optimistic about Chinese assets and have significantly increased their positions in the technology growth sector during the third quarter, as revealed by the latest quarterly reports from major foreign fund companies [2][3][4]. Group 1: Fund Positioning and Strategies - Several foreign public funds, including Fidelity and BlackRock, have notably increased their holdings in technology stocks, with Fidelity's fund significantly adding 126,000 shares of the humanoid robot leader, UBTECH, making it their largest holding [2]. - The top ten holdings of Fidelity's fund now include H-shares and A-shares of SMIC and Shanghai Fudan, indicating a strategic focus on key technology players [2]. - The fund managers from Fidelity attribute the strong performance of the technology growth sector to the transitional achievements of the Chinese economy, driven by innovation [2][3]. Group 2: Sector Focus and Future Outlook - The managers of the Robeco China Opportunities Mixed Fund emphasize a balanced growth-oriented portfolio, focusing on high-end manufacturing upgrades, the automotive and electric vehicle supply chain, and AI technology [3]. - Allianz's fund managers express confidence in high-quality technology assets leading the revaluation of Chinese stocks, maintaining a high stock position and achieving good investment returns [3][4]. - BlackRock's fund managers highlight an increased focus on the electronics sector, benefiting from self-sufficient chips and AI-driven PCB cycles, while maintaining a positive outlook on Chinese assets [4]. Group 3: Investment Themes and Asset Allocation - The managers from Allianz suggest that A-shares are becoming increasingly attractive, planning to maintain an "overweight" position in stocks and dynamically adjust based on market conditions [4]. - They also plan to focus on high-quality technology assets that are expected to exceed profit expectations, as well as dividend assets with significant revaluation potential [4]. - Schroders' fund managers note a rebound in industrial profits in August and are optimistic about the potential wealth effect of the stock market on consumption, favoring cyclical and technology sectors [5].

Core Viewpoint - The company reported strong financial performance in Q3 2025, driven by the booming AI industry and increased demand for its products, achieving record highs in revenue and net profit [4][5]. Financial Performance - In Q3 2025, the company achieved operating revenue of 1.424 billion yuan, a year-on-year increase of 57.22% [4]. - The net profit attributable to the parent company was 473 million yuan, up 22.94% year-on-year [4]. - After excluding share-based payment expenses, the net profit attributable to the parent company was 811 million yuan, reflecting a significant year-on-year growth of 105.78% and a quarter-on-quarter increase of 10.96% [5]. Product Line Performance - The sales revenue from interconnect chip products reached 1.371 billion yuan, marking a year-on-year increase of 61.59% and a quarter-on-quarter growth of 3.78% [4]. - The gross margin for the interconnect chip product line was 65.69%, with a quarter-on-quarter increase of 1.48 percentage points [4]. - The company maintained its industry-leading position with the continuous iteration of DDR5 memory interface chips, with sales revenue from the third generation RCD chip surpassing that of the second generation for the first time [4]. Stock Performance - The company's stock price surged by 88.78% compared to the end of Q2 2025, resulting in a significant increase in share-based payment expenses to 353 million yuan [5]. - The impact of these expenses on the net profit attributable to shareholders was 338 million yuan, which was considered in the adjusted net profit figures [5].

Investment Rating - The investment rating for the company is "Outperform the Market" [5][26] Core Insights - The company achieved a record high revenue in Q3 2025, with a year-on-year revenue growth of 57.22% and a net profit margin of 32.58%. The revenue for Q3 2025 reached 1.424 billion yuan, while the net profit was 473 million yuan [2][3] - The company's revenue for the first three quarters of 2025 was 4.058 billion yuan, representing a year-on-year increase of 57.83%, with a net profit margin improving to 38.85% [1][3] - The company has begun large-scale shipments of DDR5 fourth-generation RCD chips and has launched several new products, indicating strong progress in product development [3][4] Financial Performance Summary - For the first three quarters of 2025, the company reported a revenue of 4.058 billion yuan (YoY +57.83%) and a net profit of 1.632 billion yuan (YoY +66.89%) [1] - In Q3 2025, the company recorded a revenue of 1.424 billion yuan (YoY +57.22%, QoQ +0.92%) and a net profit of 473 million yuan (YoY +22.94%, QoQ -25.33%) [2] - The gross margin for Q3 2025 was 63.34%, reflecting a year-on-year increase of 4.6 percentage points [2][3] - The company has slightly adjusted its net profit forecasts for 2025-2027 due to increased share-based payment expenses, projecting net profits of 2.272 billion yuan, 2.809 billion yuan, and 3.381 billion yuan for 2025, 2026, and 2027 respectively [3][4] Product Development and Market Position - The company’s interconnect chip product line saw a revenue increase of 61.21% to 3.832 billion yuan, while the revenue from the Jindai® server platform product line grew by 17.88% to 218 million yuan [1] - The company has initiated the delivery of DDR5 second-generation MRCD/MDB chips, with orders exceeding 140 million yuan expected to be delivered in the next six months [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][9] Core Views - The company is benefiting from the booming demand in the AI industry, leading to significant revenue growth. In Q3 2025, the company achieved a revenue of 1.424 billion yuan, a year-on-year increase of 57.22% [6][8] - The company's net profit for Q3 2025 was 473 million yuan, representing a year-on-year growth of 22.94%. After excluding stock payment expenses, the adjusted net profit was 811 million yuan, showing a year-on-year increase of 105.78% [6][7] - The company continues to lead in the DDR5 memory interface chip market, with the sales revenue of the third-generation RCD chip surpassing that of the second generation for the first time [7] Financial Performance Summary - For the first three quarters of 2025, the company reported a total revenue of 4.058 billion yuan, up 57.83% year-on-year, and a net profit of 1.632 billion yuan, up 66.89% year-on-year [6] - The company's revenue and net profit for Q3 2025 set new historical highs, with the interconnect chip product line achieving sales revenue of 1.371 billion yuan, a year-on-year increase of 61.59% [6][7] - The company has adjusted its profit forecasts for 2025-2027, expecting net profits of 2.16 billion, 3.41 billion, and 3.96 billion yuan respectively [8][11] Product Development and Market Position - The company is launching new products, including the CXL 3.1 memory expansion controller chip, which addresses the performance bottlenecks in traditional memory architectures [7] - The company has also entered the sample testing phase for its clock buffer and spread spectrum oscillator products, which are expected to support key areas such as high-speed communication and industrial control [7] - As of October 27, 2025, the company has over 140 million yuan in orders for the DDR5 second-generation MRCD/MDB chips [7]

证券代码：688008 证券简称：澜起科技 公告编号：2025-063 澜起科技股份有限公司 关于 2025 年第二次回购 A 股股份方案首次回购股份 暨回购进展的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 | 回购方案首次披露日 | 2025/6/21 | | | | | | | --- | --- | --- | --- | --- | --- | --- | | 回购方案实施期限 | 2025 年 月 8 7 | 7 | 日~2026 | 年 | 月 | 7 日 | | 预计回购金额 | 2亿元~4亿元 | | | | | | | 回购用途 | √减少注册资本 □用于员工持股计划或股权激励 | | | | | | | | □用于转换公司可转债 | | | | | | | | □为维护公司价值及股东权益 | | | | | | | 累计已回购股数 | 70万股 | | | | | | | 累计已回购股数占总股本比例 | 0.06% | | | | | | | 累计已回购金额 | 9,653.06万元 | | | ...