Rockchip(SH:603893) CMS·2025-07-14 12:10Investment Rating - The report assigns an "Accumulate" investment rating for the company [2][7]. Core Viewpoints - The company is a leading domestic AIoT SoC chip manufacturer with a broad range of applications across various industries. The flagship products and new releases have driven a continuous increase in market share, contributing to strong annual performance growth. The company is expected to benefit from the explosive growth of edge AI applications in sectors such as automotive electronics, machine vision, industrial applications, and robotics [6][66]. - The company has established long-term partnerships with thousands of terminal customers, including major players like BYD, Xiaomi, and Lenovo, which enhances its market position [6][18]. - The company has maintained a stable R&D investment of around 20% of revenue for over a decade, which has solidified its core competitiveness in AIoT technology, algorithms, and products [6][27]. Summary by Sections Company Overview - Founded in 2001, the company specializes in the design, research, and sales of intelligent application processor SoCs and peripheral chips. It has a rich product matrix covering automotive electronics, machine vision, and industrial applications, making it one of the most diversified AIoT product line manufacturers in China [14][18]. Financial Performance - The company reported a revenue of 3.136 billion yuan in 2024, a year-on-year increase of 47%. The net profit attributable to shareholders was 595 million yuan, up 341% year-on-year. For the first half of 2025, revenue is expected to reach 2.045 billion yuan, representing a 64% increase year-on-year, with net profit projected between 520 million and 540 million yuan, reflecting a year-on-year growth of 185% to 195% [6][19][66]. Market Opportunities - The report highlights significant growth opportunities in edge and on-device AI applications, driven by the open-sourcing of AI large model technologies. The automotive electronics sector is expected to see a surge in demand for SoC computing power due to the increasing complexity of smart cockpit features [30][33]. - The machine vision market is projected to grow at a CAGR of approximately 20% from 2024 to 2028, driven by advancements in AI and industrial automation [33][36]. Product Development - The company is actively developing a full range of AIoT SoC chip platforms, including high-end, mid-high-end, mid-range, and entry-level products. The flagship RK3588 chip continues to gain traction, with several new products launched in 2024, including RK3576 and RK2118 [6][49][66]. - The company is also focusing on enhancing its AI algorithms and software solutions, which are expected to improve the performance of its hardware products in various applications [66]. Future Projections - The company is projected to achieve revenues of 4.311 billion yuan, 5.539 billion yuan, and 6.943 billion yuan in 2025, 2026, and 2027, respectively, with year-on-year growth rates of 37%, 29%, and 25%. The net profit attributable to shareholders is expected to be 1.055 billion yuan, 1.339 billion yuan, and 1.734 billion yuan for the same years, with growth rates of 77%, 27%, and 29% [7][66].