Dosilicon(SH:688110) China Post Securities·2025-03-04 19:01Investment Rating - The report maintains a "Buy" rating for Dongxin Co., Ltd. (688110) [7][10] Core Views - The semiconductor design industry is experiencing a recovery, leading to improved performance for the company, with a revenue increase of 20.80% year-on-year to 641 million yuan in 2024, and a reduction in net loss by 43.24% to 173.83 million yuan [2][3] - The company is focusing on high-level R&D investments, particularly in storage technologies, and is advancing its SLC NAND FLASH technology while also developing Wi-Fi 7 wireless communication chips [3][4][8] - The demand for storage chips is expected to grow due to the increasing application of AI technology in various devices, positioning the company to benefit from this trend [4][9] Summary by Sections Financial Performance - In 2024, the company achieved a revenue of 641 million yuan, a 20.80% increase year-on-year, while the net loss narrowed to 173.83 million yuan, a reduction of 43.24% [2][3] - The company anticipates revenues of 946 million yuan in 2025 and 1.29 billion yuan in 2026, with projected net profits turning positive in 2025 at 1.90 million yuan and reaching 18 million yuan in 2026 [10][12] Market Position and Strategy - The company is actively expanding its market presence in key applications such as network communication, surveillance, wearables, and automotive electronics, which has led to significant growth in product sales [3][4] - The company is enhancing its product structure and market strategies to improve operational efficiency and reduce costs, resulting in an increase in gross margin compared to the previous year [3] Product Development - The company is expanding its SLC NAND Flash product line and has entered the risk production phase for its advanced 1xnm SLC NAND Flash products [8] - The MCP series products are designed to meet the low-power requirements of mobile internet and IoT applications, with ongoing iterations to enhance product offerings [9]