Cambricon(SH:688256) Huaxin Securities·2024-08-04 13:00Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2]. Core Insights - The company is positioned as a leader in chip technology innovation and is experiencing a multi-dimensional development across its industry lines, with a narrowing of losses in the short term [2][5]. - The company has established a strong product lineup that includes AI core chips for various applications in cloud servers, edge computing devices, and terminal devices [2]. - The company has engaged in significant projects, including a collaboration with China Mobile, indicating its growing influence in the AI chip market [3][4]. Summary by Relevant Sections Company Overview - The company focuses on the research, design, and sales of AI core chips, with major revenue contributions from its cloud, edge, and IP product lines [2]. - In 2023, the company reported revenues of 709.39 million yuan, with a net loss of 848.44 million yuan [2]. Financial Performance - The company’s revenue for Q1 2024 was 25.67 million yuan, a year-on-year decline of 65.91%, attributed to supply chain issues [2]. - The forecasted revenues for 2024, 2025, and 2026 are 1.404 billion yuan, 2.240 billion yuan, and 3.435 billion yuan respectively, with significant growth rates expected [5][7]. Market Trends - The global AI chip market is projected to grow from 53 billion USD in 2023 to 67.1 billion USD in 2024, with expectations to exceed 119.4 billion USD by 2027 [4]. - The domestic AI computing power market is also expanding rapidly, with a compound annual growth rate of 33.9% anticipated through 2027 [4]. Strategic Initiatives - The company has initiated a stock buyback plan to boost employee morale and investor confidence, with a total buyback amount not less than 20 million yuan [2]. - The company is actively participating in large-scale projects, such as the digital infrastructure enhancement project in Zhejiang, with a contract value of 753.08 million yuan [3]. Product Development - The company has launched several innovative products, including the world's first commercial terminal intelligent processor IP product and the first high-performance cloud AI chip in China [3]. - The company’s products have been integrated into over 100 million smart devices, showcasing its market penetration and technological capabilities [3].