Group 1 - The semiconductor sector opened with a continuous rise, indicating positive market sentiment [1] - Notable stocks include Electric Science Chip, which hit the daily limit, and others like Lixin Micro and Xidi Micro, which rose over 10% [1] - Additional companies such as Changguanghua Chip, Guoxin Technology, Zhongke Lanyun, Haiguang Information, and Ashi Chuang also experienced upward movement [1]

Core Viewpoint - The semiconductor sector is experiencing a significant upward trend, with multiple companies showing strong performance in the market [1] Company Performance - Electric Science's chip stock has reached the daily limit increase [1] - Companies such as Lixin Micro and Xidi Micro have seen their stock prices rise by over 10% [1] - Other companies including Changguang Huaxin, Guoxin Technology, Zhongke Lanyun, Haiguang Information, and Ashi Chuang are also experiencing gains [1]

Investment Rating - The report initiates coverage with a "Buy" rating for the company [4][8]. Core Insights - The company is a leading domestic AIOT enterprise based on the RISC-V instruction set, maintaining a leading net profit margin in the industry. It has developed a range of high-performance CPU cores and various functional module IPs, including Bluetooth and audio chips, which are widely used in wireless interconnected terminals [4][14]. - The company has experienced significant revenue growth, with a compound annual growth rate (CAGR) of approximately 18.36% from 2020 to 2024, driven by its competitive pricing strategy and expansion into emerging markets [4][44]. - The global TWS earphone market is expected to grow significantly, with a projected CAGR of 34.88% over the next eight years, benefiting the company as it captures a substantial market share [4][8]. - The company is diversifying its AIOT product offerings, including smart wearables and wireless microphones, and is well-positioned to capitalize on the industry's growth [4][5]. Summary by Sections Company Overview - The company is a leading integrated circuit design firm focused on wireless audio SoC chips, established in 2016 and listed on the STAR Market in 2022. It has developed a product architecture consisting of ten product lines, including Bluetooth earphone chips and AIoT chips [14][21]. Product Structure - The company has a diverse product structure with a focus on Bluetooth earphone chips (59% of revenue), Bluetooth speaker chips (21%), and smart wearable chips (7%) for 2024. The product range is expanding to meet various market demands [4][28]. Financial Performance - The company's revenue is projected to reach 20.02 billion yuan in 2025, with a net profit of 3.17 billion yuan. The net profit margin has remained above 13%, indicating strong cost control and operational efficiency [6][44][49]. Market Opportunities - The global TWS earphone market is projected to reach approximately $51.4 billion in 2022, with significant growth expected in the coming years. The company is well-positioned to benefit from this trend due to its strong market presence and product offerings [4][8]. Competitive Position - The company maintains a competitive edge through its proprietary RISC-V architecture, which allows for cost savings and flexibility in chip design. This positions the company favorably against competitors in the AIOT space [17][49]. Future Outlook - The company is expected to continue its growth trajectory, with revenue forecasts of 24.11 billion yuan in 2026 and 29.65 billion yuan in 2027, reflecting a robust market demand for its products [6][8].

Core Insights - The semiconductor sector experienced a rise of 1.15% on November 24, with notable gains from companies like 电科芯片, which surged by 8.08% [1] - The Shanghai Composite Index closed at 3836.77, up 0.05%, while the Shenzhen Component Index closed at 12585.08, up 0.37% [1] Semiconductor Sector Performance - The top performers in the semiconductor sector included: - 电科芯片: Closed at 15.51, up 8.08%, with a trading volume of 781,900 shares and a transaction value of 1.195 billion [1] - 锯墙科技: Closed at 60.66, up 7.92%, with a trading volume of 131,000 shares and a transaction value of 780 million [1] - 北方华创: Closed at 416.24, up 7.59%, with a trading volume of 155,800 shares and a transaction value of 6.33 billion [1] - Other notable gainers included 峰启科技, 至正股份, and 神工股份, all showing significant percentage increases [1] Decliners in the Semiconductor Sector - The semiconductor sector also saw declines, with: - 大为股份: Closed at 29.68, down 10.01%, with a trading volume of 180,200 shares and a transaction value of 544 million [2] - 中科雷讯: Closed at 127.48, down 8.50%, with a trading volume of 42,700 shares and a transaction value of 560 million [2] - 大港股份: Closed at 15.86, down 5.54%, with a trading volume of 542,300 shares and a transaction value of 859 million [2] Capital Flow Analysis - On the same day, the semiconductor sector saw a net outflow of 3.141 billion from institutional investors, while retail investors contributed a net inflow of 3.043 billion [2] - The capital flow for specific stocks indicated that: - 晶晨股份 had a net inflow of 260 million from institutional investors [3] - 中微公司 saw a net inflow of 189 million from institutional investors [3] - 电科芯片 experienced a net inflow of 92.94 million from institutional investors [3]

Group 1 - Zhongke Lanyun experienced a decline of 5.48% on November 24, with a stock price of 131.68 CNY per share and a trading volume of 182 million CNY, resulting in a turnover rate of 3.04% and a total market capitalization of 15.88 billion CNY [1] - The company, Shenzhen Zhongke Lanyun Technology Co., Ltd., was established on December 19, 2016, and went public on July 15, 2022. Its main business involves the research, design, and sales of wireless audio chips, with chip sales accounting for 99.83% of its revenue [1] Group 2 - Among the top ten circulating shareholders of Zhongke Lanyun, a fund under Southern Fund ranks first. The Southern CSI 1000 ETF (512100) entered the top ten shareholders in the third quarter, holding 440,300 shares, which represents 0.99% of the circulating shares. The estimated floating loss today is approximately 3.36 million CNY [2] - The Southern CSI 1000 ETF (512100) was established on September 29, 2016, with a latest scale of 76.63 billion CNY. Year-to-date returns are 20.09%, ranking 2058 out of 4208 in its category; the one-year return is 14.36%, ranking 2432 out of 3981; and since inception, the return is 6.27% [2] - The fund manager of Southern CSI 1000 ETF (512100) is Cui Lei, who has been in the position for 7 years and 19 days, managing total assets of 122.76 billion CNY. The best fund return during the tenure is 164.23%, while the worst return is -16.8% [2]

Group 1 - Zhongke Lanyun's stock price dropped by 5.15% to 139.10 CNY per share, with a trading volume of 398 million CNY and a turnover rate of 6.21%, resulting in a total market capitalization of 16.775 billion CNY [1] - The company, established on December 19, 2016, and listed on July 15, 2022, specializes in the research, design, and sales of wireless audio chips, with 99.83% of its revenue coming from chip sales [1] Group 2 - Zhonghang Fund has a significant holding in Zhongke Lanyun, with its flagship fund increasing its stake by 272,000 shares to a total of 301,500 shares, representing 10.14% of the fund's net value, making it the largest holding [2] - The fund, Zhonghang Vision Leading Mixed Initiation A (021491), has a current scale of 137 million CNY and has reported a year-to-date return of 11.41%, ranking 5389 out of 8136 in its category [2] Group 3 - The fund manager, Wang Sen, has been in charge for 2 years and 57 days, overseeing assets totaling 2.85 billion CNY, with the best fund return during his tenure being 132.1% and the worst being -0.6% [3]

Group 1 - Zhongke Lanyun experienced a decline of 5.15% on November 21, with a stock price of 139.10 CNY per share, a trading volume of 398 million CNY, a turnover rate of 6.21%, and a total market capitalization of 16.775 billion CNY [1] - The company, Shenzhen Zhongke Lanyun Technology Co., Ltd., was established on December 19, 2016, and went public on July 15, 2022. Its main business involves the research, design, and sales of wireless audio chips, with chip sales accounting for 99.83% of its revenue [1] Group 2 - From the perspective of fund holdings, one fund under Dongcai has Zhongke Lanyun as a significant investment. The Dongcai Economic Driven Mixed Fund A (019143) held 5,356 shares in the third quarter, representing 5.9% of the fund's net value, making it the second-largest holding [2] - The Dongcai Economic Driven Mixed Fund A (019143) was established on January 23, 2024, with a latest scale of 14.1929 million CNY. Year-to-date returns are 16.93%, ranking 4,471 out of 8,136 in its category, while the one-year return is 18.82%, ranking 3,818 out of 8,056 [2] - The fund manager, Fang Yihang, has been in the position for 4 years and 77 days, with a total asset scale of 14.8917 million CNY. The best return during his tenure is 30.45%, while the worst is -47.46% [2]

Market Overview - The semiconductor sector experienced a decline of 1.24% on November 20, with Aisen Co. leading the drop [1] - The Shanghai Composite Index closed at 3931.05, down 0.4%, while the Shenzhen Component Index closed at 12980.82, down 0.76% [1] Top Gainers in Semiconductor Sector - Dawi Co. (002213) saw a significant increase of 10.00%, closing at 36.64 with a trading volume of 556,200 shares and a transaction value of 1.96 billion [1] - Tianyue Advanced (688234) rose by 5.77%, closing at 79.98 with a trading volume of 154,400 shares and a transaction value of 1.24 billion [1] - Hongwei Technology (688711) increased by 5.12%, closing at 23.59 with a trading volume of 125,700 shares [1] Top Decliners in Semiconductor Sector - Vincent Co. (688720) fell by 6.29%, closing at 54.65 with a trading volume of 65,400 shares and a transaction value of 368 million [2] - Demingli (001309) decreased by 6.16%, closing at 247.46 with a trading volume of 173,700 shares and a transaction value of 4.37 billion [2] - Kewai (300672) dropped by 6.12%, closing at 103.75 with a trading volume of 134,300 shares and a transaction value of 1.41 billion [2] Capital Flow Analysis - The semiconductor sector experienced a net outflow of 5.54 billion from major funds, while retail investors saw a net inflow of 3.53 billion [2] - Major funds showed a net inflow in stocks like Dagang Co. (002077) with 93.35 million, while retail investors had a net outflow of 44.89 million [3] - Tianyue Advanced (688234) had a net inflow of 68.41 million from major funds, but a net outflow of 23.02 million from retail investors [3]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company reported a steady growth in Q3 2025, with revenue reaching 1.3 billion yuan, a year-on-year increase of 4.3%. The net profit attributable to the parent company was 210 million yuan, up 2.2% year-on-year, while the net profit excluding non-recurring items was 180 million yuan, reflecting a 3.9% increase year-on-year. The overall gross margin was 22.6%, a decrease of 0.3 percentage points year-on-year [4][6] - In Q3 2025, the company achieved revenue of 490 million yuan, representing a year-on-year growth of 7.2% and a quarter-on-quarter increase of 10.2%. The net profit attributable to the parent company was 80 million yuan, up 11.1% year-on-year but down 7.1% quarter-on-quarter. The net profit excluding non-recurring items was 70 million yuan, a year-on-year increase of 8.6% but a quarter-on-quarter decrease of 4.4%. The gross margin for the quarter was 22.0%, down 2.5 percentage points year-on-year and 1.0 percentage point quarter-on-quarter [4][6] Financial Performance - The company effectively controlled its expenses, with sales expense ratio, management expense ratio, and R&D expense ratio for the first three quarters of 2025 at 0.49%, 1.89%, and 8.77%, respectively, showing year-on-year increases of 0.04 percentage points, 0.08 percentage points, and 0.44 percentage points [5] - For Q3 2025, the sales expense ratio was 0.48%, up 0.05 percentage points year-on-year and 0.2 percentage points quarter-on-quarter. The management expense ratio was 1.29%, down 0.24 percentage points year-on-year and 0.65 percentage points quarter-on-quarter. The R&D expense ratio was 7.95%, down 0.8 percentage points year-on-year but up 1.33 percentage points quarter-on-quarter [5] Business Development - The company has been deepening its layout in the edge AI field. Since November 2024, the third-generation chip platform BT895X has been integrated with the Volcano Ark MaaS platform, providing users with software and hardware solutions compatible with the Doubao large model. The company is continuously collaborating with Volcano Engine in phases [6] - The company showcased an AI toy solution based on the AB6003G Wi-Fi chip at the 2025 Volcano Engine FORCE conference. The AB6003G is a high-performance SoC that integrates Wi-Fi, Bluetooth, and audio, aimed at enhancing performance and user experience in IoT scenarios [6] - Recently, the company launched the OC3 AI clip-on Bluetooth earphone, which is equipped with the BT8951H chip and supports AI intelligent Q&A, indicating a continued focus on AI edge products [6] Financial Forecast - The company is expected to achieve revenues of 2.16 billion yuan, 2.81 billion yuan, and 3.41 billion yuan for 2025, 2026, and 2027, respectively. The net profit attributable to the parent company is projected to be 360 million yuan, 460 million yuan, and 580 million yuan for the same years. The corresponding EPS is estimated to be 2.99 yuan, 3.77 yuan, and 4.83 yuan, with PE ratios of 44.26x, 35.08x, and 27.40x [7][10]

Group 1 - The company has completed the cancellation procedures for a special settlement account for raised funds used for financial products [1][2] - The establishment of the special account was approved during the board and supervisory board meetings held on July 17, 2023, to manage temporarily idle raised funds [1] - All financial products in the special account have matured and been redeemed, with no plans for further use of the account [2] Group 2 - The company continues to use other special accounts for raised funds, with further details to be disclosed in a report on August 29, 2025 [2]