Core Insights - The company, Chip Origin, reported a record high revenue of 1.284 billion yuan for Q3 2025, marking a year-on-year increase of 78.77% and a quarter-on-quarter increase of 119.74% [2] - Despite the significant revenue growth and a substantial reduction in losses, the company has struggled to turn a profit, remaining in a loss position for several quarters [5][6] - AI computing demand has been a major driver of order and revenue growth, with AI-related orders accounting for approximately 65% of new orders in Q3 2025 [3][4] Revenue and Orders - The company expects to sign new orders worth 3.249 billion yuan in the first three quarters of 2025, surpassing the total new orders for the entire year of 2024 [3] - The Q3 2025 new orders reached 1.593 billion yuan, representing a year-on-year increase of 145.8% [3] - The one-stop chip customization service has seen significant growth, with chip design revenue expected to reach 429 million yuan (up 291.76% quarter-on-quarter) and volume production revenue expected to reach 609 million yuan (up 133.02% quarter-on-quarter) [2] Industry Context - The global semiconductor market is projected to grow from approximately 580 billion dollars in 2024 to 1.2 trillion dollars by 2030, with AI semiconductors expected to account for over 70% of the total market by that time [4] - The rapid development of artificial intelligence technologies, particularly generative AI models, has led to increased demand for computing power, driving semiconductor companies to innovate and develop advanced chip architectures [4] Challenges and Profitability - Despite high order levels maintained for eight consecutive quarters, the company has not seen a corresponding improvement in profitability, with losses continuing to widen in recent quarters [5][6] - The semiconductor industry is characterized by high investment and slow returns, making it difficult for companies to achieve profitability quickly [6] - The company's business structure, which includes chip design and semiconductor IP licensing, has varying profit margins, with licensing fees yielding significantly higher margins compared to design and volume production [6][7] Market Performance - The company's stock price has increased by 254.78% year-to-date, reflecting strong market performance despite ongoing losses [7] - The competitive advantage of the company lies in the design and licensing segments of the chip industry, where it has a relatively smaller gap compared to international leaders [7]

Investment Rating - The report maintains a "stronger than the market" rating for the electronic industry, indicating a positive outlook for the sector [2][31]. Core Viewpoints - The report expresses optimism regarding the overall opportunities in the computing power and storage industry chains, particularly focusing on domestic computing power and storage sectors. It highlights improvements in supply-side conditions for domestic computing chips and increasing demand driven by AI-related capital investments [2][31]. - The report anticipates a significant increase in demand for DRAM and NAND due to the continuous release of large models, with expectations for a major expansion year for storage in the upcoming year [2][31]. Summary by Sections Market Review - The electronic industry outperformed the overall market during the week of September 29-30, with the Shenwan Electronic Index rising by 2.78%, ranking 6th among 31 Shenwan industries. Year-to-date, the index has increased by 53.51%, ranking 3rd [12][31]. Weekly Focus - OpenAI's release of the Sora 2 model is expected to significantly increase demand for computing and storage capabilities. Additionally, Samsung and SK Hynix have signed an agreement to supply memory chips for OpenAI's data centers, indicating a growing collaboration in the AI sector [25][27]. - The report notes that Longxin Technology is progressing towards its IPO, which is anticipated to enhance its market presence in the DRAM sector [29][30]. - The report also mentions that major DRAM manufacturers have paused pricing for a week, which may lead to a price increase of over 30% in the fourth quarter [30][31]. Industry Opportunities - The report emphasizes the potential in the domestic computing power chain, highlighting key players such as Cambricon, Haiguang Information, and Chipone. It also points out the expected growth in the storage sector, particularly for NAND and DRAM, driven by new product launches from Yangtze Memory Technologies and Longxin [2][31]. - The overseas computing power chain is also noted for its rapid growth, with significant capacity expansions expected in PCB manufacturing [31]. Valuation - As of October 9, 2025, the electronic industry's valuation (PE-TTM) stands at 67.72 times, which is considered to be at a historical mid-level [20][23].

证券代码：688521 证券简称：芯原股份 公告编号：2025-060 芯原微电子（上海）股份有限公司 关于发行股份及支付现金购买资产事项的进展公告 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。 一、本次交易的基本情况 2025 年 9 月 11 日，公司召开第三届董事会第三次会议，审议通过了《关于 公司本次发行股份及支付现金购买资产并募集配套资金预案及其摘要的议案》等 与本次交易相关的议案，并与所有交易对方签署了《发行股份及支付现金购买资 1 产协议》，约定本次购买资产发行股份价格为 106.66 元/股，具体内容详见公司 于 2025 年 9 月 12 日发布于上海证券交易所网站（www.sse.com.cn）上的《发行 股份及支付现金购买资产并募集配套资金预案》及相关公告。本次交易完成后， 芯来科技将成为上市公司的全资子公司。 同日，经公司向上海证券交易所申请，公司股票（股票简称：芯原股份，证 券代码：688521）于 2025 年 9 月 12 日（星期五）开市起复牌。具体内容详见公 司于 2025 年 9 月 12 ...

Core Viewpoint - The ChiNext 50 Index has seen a significant decline, with a drop of 5%, indicating a challenging market environment for technology stocks [1] Group 1: Index Performance - The ChiNext 50 Index's decline has expanded to 5%, reflecting broader market pressures [1] - Among the constituent stocks, only 6 have shown an increase, highlighting a lack of positive momentum in the sector [1] Group 2: Leading Stocks - The stocks of Jinghe Integrated, Baiwei Storage, and Chip Origin have led the decline, suggesting specific challenges faced by these companies [1]

Group 1 - Chip concept stocks weakened in early trading, with companies like SMIC, Haiguang Information, Hengxuan Technology, and Chipone falling over 6% [1] - The related ETFs for innovative chips dropped more than 4% due to market influences [1] Group 2 - Various innovative chip ETFs experienced significant declines, with the Guotai ETF down 4.84% to 1.612, and other ETFs like 588200 and 588290 also showing declines of 4.80% and 4.76% respectively [2] - Analysts noted that as AI models evolve, the commercial models for AI applications are becoming clearer, with the release of Sora 2.0 introducing social attributes that broaden OpenAI's monetization channels [2] - OpenAI has secured orders for storage and GPU components from Samsung, SK Hynix, and AMD, indicating a strengthened certainty in the demand for AI infrastructure, which is expected to benefit the related computing power industry chain in the future [2]

Core Viewpoint - The rapid development of artificial intelligence (AI) has led to significant revenue growth for related chip companies, exemplified by Chipone Technology (688521.SH), which reported a substantial increase in revenue and orders, although it continues to face profitability challenges [2][3]. Company Performance - Chipone Technology expects to achieve a revenue of 1.284 billion yuan for the third quarter, marking a record high for quarterly revenue, with a quarter-on-quarter increase of 119.74% and a year-on-year growth of 78.77% [2]. - The company signed new orders worth 3.249 billion yuan in the first three quarters, exceeding its total for the entire year of 2024, with 65% of third-quarter orders related to AI computing [2][4]. - Despite the revenue surge, Chipone Technology reported a net loss of 320 million yuan in the first half of the year, a 12.3% increase in loss compared to the same period last year [2][3]. Business Segmentation - The company's one-stop chip customization business is the main growth driver, with expected revenue of 429 million yuan from chip design, a quarter-on-quarter increase of 291.76% and a year-on-year increase of 80.67% [3]. - Revenue from chip mass production is expected to reach 609 million yuan, with a quarter-on-quarter growth of 133.02% and a year-on-year growth of 158.12% [3]. - The traditional semiconductor IP licensing business is projected to generate 213 million yuan, remaining stable year-on-year, but its share of total revenue has decreased from 34% in the first half of the year to 20% [3][4]. Profitability Challenges - The company continues to face significant losses, with a net profit margin of -32.85% in the first half of the year, worsening from -30.56% in the same period last year [4][5]. - High research and development (R&D) expenses are a core issue affecting profitability, with R&D costs reaching 1.247 billion yuan in 2024, accounting for 53.7% of revenue [4][5]. - The gross margin for the one-stop chip customization business is significantly lower at 18.17%, compared to 92.73% for the traditional IP licensing business, further exacerbating profitability pressures [5]. Industry Context - The domestic AI chip industry is experiencing a surge in orders, but most companies still face profitability challenges, as seen with other firms like Moer Thread and Muxi Technology, which reported significant revenue growth but also substantial losses [6]. - The quality of orders and economies of scale are critical for overcoming profitability issues, with over 70% of current orders coming from large internet companies that impose strict performance and cost control requirements [6][7]. - The competitive landscape for domestic AI chip companies is still evolving, with no clear leader yet, and the ability to achieve large-scale production will be crucial for long-term profitability [7].

Core Viewpoint - The rapid development of artificial intelligence (AI) has led to a significant surge in the performance of related chip companies, exemplified by the impressive third-quarter results of Chipone Technology (688521.SH) [3][4]. Group 1: Company Performance - Chipone Technology expects to achieve a revenue of 1.284 billion yuan for the first three quarters, marking a record high for a single quarter, with a quarter-on-quarter increase of 119.74% and a year-on-year growth of 78.77% [3][4]. - The company signed new orders worth 3.249 billion yuan in the first three quarters, exceeding the total for the entire year of 2024, with 1.593 billion yuan of new orders in the third quarter, 65% of which are related to AI computing power [3][5]. Group 2: Business Structure and Profitability - The core growth driver for Chipone is its one-stop chip customization business, which saw a revenue of 429 million yuan in chip design, a quarter-on-quarter increase of 291.76% and a year-on-year increase of 80.67% [5]. - The one-stop chip customization business is expected to account for over 80% of total revenue in the third quarter, while the traditional semiconductor IP licensing business's revenue is projected to be 213 million yuan, remaining flat year-on-year [5][7]. - Despite the revenue surge, Chipone reported a net loss of 320 million yuan in the first half of the year, worsening by 12.3% year-on-year, and the net profit margin was -32.85% [3][6]. Group 3: Industry Context - The domestic AI chip industry is experiencing a boom in orders, but most companies still face challenges in profitability. For instance, another GPU company, Moore Threads, reported a revenue of 700 million yuan in the first half of 2025 but incurred a net loss of 270 million yuan [9]. - The profitability of AI chip companies is heavily influenced by the quality of orders and economies of scale, with over 70% of current orders coming from large internet companies, which impose strict performance and cost control requirements [9][10]. - The long-term profitability of domestic AI chip companies will likely vary, with leading firms that achieve large-scale production first gaining a competitive edge [10].

Core Viewpoint - The Sci-Tech Chip ETF FuGuo (588810) opened down 1.45% at 1.829 yuan, reflecting a decline in its major holdings and overall market sentiment [1] Group 1: ETF Performance - The Sci-Tech Chip ETF FuGuo (588810) has a performance benchmark of the Shanghai Stock Exchange Sci-Tech Board Chip Index return rate [1] - Since its establishment on December 30, 2024, the fund has achieved a return of 85.38% [1] - The fund's return over the past month is reported at 34.87% [1] Group 2: Major Holdings Performance - Major holdings in the ETF include: - SMIC (中芯国际) down 2.91% - Haiguang Information (海光信息) down 2.30% - Cambricon (寒武纪) down 2.31% - Lattice Technology (澜起科技) down 1.96% - Zhongwei Company (中微公司) down 1.40% - Chipone (芯原股份) down 3.88% - Hu Silicon Industry (沪硅产业) down 2.94% - Hengxuan Technology (恒玄科技) down 2.54% - SiTewave (思特威) down 2.05% - Huahai Qingke (华海清科) down 2.08% [1]

Summary of VeriSilicon Conference Call Company Overview - **Company**: VeriSilicon (688521.SS) - **Industry**: Semiconductor and IP Solutions Key Financial Highlights - **3Q25 Revenues**: Rmb1.3 billion, representing a **79% YoY** and **120% QoQ** increase, which is **64% higher** than estimates [1][4] - **Chip Design Services Growth**: Revenues increased by **81% YoY** [1] - **Chip Production Management Services Growth**: Revenues surged by **158% YoY** [1] - **IP Revenues**: Remained flat YoY [1] - **Net Loss**: Narrowed in 3Q25 due to increased revenue scale, with a revised net loss estimate of **Rmb58 million** for 2025 [5][11] Order and Demand Insights - **Orders on Hand**: Reached a historical high of **Rmb3.3 billion** by the end of September 2025, driven by strong AI demand from cloud and edge clients [1][2] - **New Orders in 3Q25**: Totaled **Rmb1.6 billion**, a **146% YoY** increase, with **65%** of these orders attributed to AI computing [4] - **Order Composition**: 90% of orders are from semiconductor turnkey solutions, with 80% expected to be delivered within one year [4] Growth Outlook - **Positive Growth Outlook**: The company is viewed as a key beneficiary of rising demand from local AI clients and increasing cloud capital expenditures in China [4] - **Revenue Projections**: Revised revenue estimates for 2025-2030 reflect an increase of **5%-19%** due to higher-than-expected growth in chip design and production management services [5][11] Margin and Earnings Adjustments - **Gross Margin (GM)**: Expected to decline by **1.3 to 2.8 percentage points** in 2025-2030 due to a shift towards lower-margin turnkey solutions [10][11] - **Operating Margin (OPM)**: Adjusted to reflect a decrease, with projections showing a decline in profitability [11] Valuation and Price Target - **Target Price**: Increased to **Rmb284**, based on a **60x P/E** multiple for 2029E earnings, reflecting a **55.2% upside** from the current price of **Rmb183** [19][22] - **Valuation Methodology**: Utilizes discounted P/E to capture long-term growth opportunities, with a cost of equity (COE) of **10%** [19] Risks and Considerations - **Technology Development Risks**: Slower-than-expected advancements in technology could impact growth [20] - **Talent Acquisition Costs**: Higher-than-expected costs for acquiring and retaining talent may affect profitability [20] - **Customer Spending**: Weaker-than-expected customer spending on IP and new chipset projects poses a risk [20] Conclusion - **Investment Recommendation**: Maintain a **Buy** rating on VeriSilicon, supported by strong revenue growth, a robust order backlog, and positive market dynamics in the semiconductor industry driven by AI demand [1][19]

Core Viewpoint - The semiconductor sector is experiencing a significant adjustment, leading to notable declines in stock prices for several companies [1] Company Performance - Hua Hong Semiconductor saw a drop of over 7% in its stock price [1] - SMIC (Semiconductor Manufacturing International Corporation) experienced a decline of more than 4% [1] - Other companies such as Bawen Storage, Demingli, Jinghe Integration, and Chipone also faced declines exceeding 5% [1]