Cambricon(SH:688256) Jing Ji Guan Cha Wang·2025-09-19 08:28Core Viewpoint - The recent performance of Cambrian (688256.SH) has attracted significant investor interest, with its stock price briefly surpassing Kweichow Moutai (600519.SH) before closing lower, highlighting the contrast between market enthusiasm and management's cautious communication regarding product development timelines [2][4][9]. Financial Performance - Cambrian reported a remarkable revenue of 2.881 billion yuan for the first half of 2025, marking a year-on-year increase of 4347.82%, and a net profit of 1.038 billion yuan, a turnaround from a loss of 530 million yuan in the same period last year [4][5]. - The company achieved its first quarterly profit in Q4 2024, with net profits of 355 million yuan and 683 million yuan in Q1 and Q2 of 2025, respectively [5][6]. Market Environment - The AI chip market in China is experiencing rapid growth, with IDC projecting the market size to reach approximately 19 billion USD in 2024 and 55.2 billion USD by 2028 [6]. - Cambrian's contract liabilities surged from 142,000 yuan at the end of Q1 2025 to 543 million yuan by the end of Q2 2025, indicating strong pre-sales and customer demand for future products [7]. Competitive Landscape - Cambrian faces stiff competition in the AI chip sector, with its market share at only 1% compared to Huawei's 23% in 2024 [11]. - The company has not released a new generation of cloud training chips since the release of the Siyuan 370 series in 2022, raising concerns about its product development pace compared to competitors like Huawei, which has outlined a clear roadmap for its AI chips [10][11]. Strategic Challenges - Cambrian's revenue is heavily reliant on a single customer, with the largest client contributing 96.48% of total revenue in Q1 2025, raising concerns about its business model sustainability [21]. - The company has paused its edge computing chip development and stopped taking on new smart computing cluster projects due to increased procurement costs and cash flow constraints [20][21]. Management Communication - During the recent earnings call, Cambrian's management was reticent about providing specific timelines for new product releases, reiterating existing public disclosures instead [24][27]. - The management emphasized the importance of technological innovation and market expansion to maintain profitability but did not elaborate on concrete strategies or timelines [25][26].