Espressif Systems(SH:688018) Ge Long Hui·2025-04-30 08:50Core Insights - The AI sector is experiencing significant advancements, particularly with Xiaomi's launch of the "Xiaomi MiMo" model, which enhances reasoning capabilities and outperforms larger models from OpenAI and Alibaba [1] - Companies in the AIoT space, particularly Espressif Systems, have seen substantial stock price increases due to strong Q1 performance [2] Financial Performance - Espressif Systems reported a record high revenue of 558 million yuan in Q1, marking a year-on-year growth of 44.08% [5] - The company's net profit reached 93.70 million yuan, up 73.8% year-on-year, while the non-GAAP net profit was 89.07 million yuan, reflecting an 85.91% increase [5][6] - The gross margin for Espressif Systems improved to 43.37%, an increase of 1.44 percentage points compared to the same period last year [7] Market Trends - The growth in the smart home sector for Espressif Systems was 30%, remaining its primary revenue source, while other sectors like industrial, energy, and healthcare are growing even faster [7] - The company is focusing on long-term digital upgrades across various IoT applications rather than relying on short-term growth from specific industries or clients [8] Future Outlook - Espressif Systems is expected to launch AI-related products in collaboration with ByteDance's Volcano Engine within the year [11] - Securities firms project continued revenue growth for Espressif Systems, with estimates of 2.694 billion yuan, 3.502 billion yuan, and 4.549 billion yuan for 2025-2027, respectively [12]