ASR(SH:688220) Xin Lang Cai Jing·2025-11-18 00:30Core Viewpoint - The company reported a year-on-year revenue growth of 13.42% for the first three quarters of 2025, with a significant improvement in gross margin in the third quarter, despite a net loss [1][2]. Financial Performance - For the first three quarters of 2025, the company achieved a revenue of 2.88 billion yuan, representing a year-on-year increase of 13.42%, while the net profit attributable to shareholders was -327 million yuan [1]. - In Q3 2025, the company recorded a revenue of 982 million yuan, showing a year-on-year growth of 11.1% but a quarter-on-quarter decrease of 0.59%. The net profit for the quarter was -82 million yuan, indicating a reduction in losses by 40 million yuan compared to the previous quarter [1]. - The overall gross margin for Q3 was 26.65%, an increase of 3.44 percentage points from the gross margin of 23.21% in Q2 2025 [1]. Contract Liabilities and Business Growth - The company's contract liabilities reached 199 million yuan in Q3, a substantial increase of 123.6% compared to 89 million yuan in the first half of 2025 [2]. - Orders for customized chips and IP licensing saw a multiple increase compared to the same period in 2024, primarily driven by demand from wearable devices, AI chips for cloud inference, and RISC-V chips [2]. - Despite a significant drop in absolute order values due to project complexity and longer cycles, the company anticipates substantial revenue growth next year as projects are completed [2]. Product Development and Market Position - The company launched its first-generation 4G octa-core chip, with initial customers already in the market, and is progressing with multiple smartphone projects [3]. - The second-generation 6nm octa-core 4G chip has met or exceeded key functional validation results, and it is the only chip in its category supporting LPDDR4x/5/5x [3]. - The company has designed six cloud AI chips from 2018 to 2022, capturing a significant share of the AI cloud chip design service market in China [3]. Investment Outlook - The company maintains an "outperform the market" rating, highlighting its competitive advantages in the cellular baseband chip sector and the ongoing introduction of smart terminal chip products [4]. - Projected net profits for 2025-2027 are -406 million yuan, 52 million yuan, and 251 million yuan, respectively, showing an improvement from previous estimates [4].