Cambricon(SH:688256) Guohai Securities·2024-09-01 06:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a significant increase in advance payments and inventory, indicating confidence in future high growth [4] - The decline in revenue for H1 2024 was primarily due to adverse supply chain factors, while losses narrowed as the company continued substantial R&D investments to maintain technological leadership [3][4] - The company is deepening collaborations with leading clients in the internet, large model, and financial sectors, achieving bulk shipments of its smart chip products [5] Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of 65 million yuan, a year-on-year decrease of 43.42%, with a net loss of 530 million yuan, a narrowing of 27 million yuan [3] - For Q2 2024, revenue was 39 million yuan, a slight year-on-year decrease of 0.21%, with a net loss of 303 million yuan, down 4.71% year-on-year [3] Growth Indicators - As of H1 2024, advance payments reached a historical high of 550 million yuan, increasing by 402 million yuan from the beginning of the year; inventory rose to 235 million yuan, up 136 million yuan [4] - The increase in advance payments and inventory suggests the company is actively placing orders with upstream suppliers and preparing for production, indicating optimistic future growth [4] Market Position and Collaborations - The company is enhancing cooperation with clients in the internet sector, achieving bulk shipments in natural language application scenarios [5] - In the large model sector, the company is collaborating with leading algorithm firms to explore and implement large model applications in various verticals [5] - The company is also testing large language models with multiple financial institutions, promoting application implementation in the financial sector [5] R&D and Innovation - The company maintains a strong focus on independent innovation and efficient R&D, with R&D investment of 447 million yuan in H1 2024, a year-on-year decrease of 7.27% [6] - The company is developing new-generation smart processors and optimizing its foundational software systems, achieving industry-leading performance in large language model pre-training [6] Earnings Forecast - The company is expected to achieve revenues of 1.4 billion yuan, 2.493 billion yuan, and 3.484 billion yuan for 2024, 2025, and 2026 respectively, with net profits projected at -441 million yuan, 18 million yuan, and 250 million yuan [7][8] - The company is anticipated to benefit from the growing demand for computing power driven by large model developments and continuous product iterations [6]