Hygon Information Technology (SH:688041) Shanxi Securities·2025-08-11 11:14Investment Rating - The report maintains a "Buy-A" rating for the company [1][9]. Core Insights - The company achieved a revenue of 5.464 billion yuan in the first half of 2025, representing a year-on-year increase of 45.21%. The net profit attributable to shareholders reached 1.201 billion yuan, up 40.78% year-on-year [4][5]. - The company is benefiting from the growing demand for domestic high-end chips, which supports its revenue growth. As of June 30, 2025, the company's contract liabilities stood at 3.091 billion yuan, indicating a strong pipeline of new contracts [5][6]. - The merger with Zhongke Shuguang is expected to create a complete industry chain from chips to servers to cloud services, enhancing market expansion and operational efficiency [7]. Financial Performance - In Q2 2025, the company reported a revenue of 3.064 billion yuan, a 41.15% increase year-on-year, with a net profit of 696 million yuan, reflecting a 23.14% growth [4]. - The gross margin decreased by 3.28 percentage points year-on-year due to increased R&D investments and marketing expenses, leading to a net profit margin of 30.05%, down 2.53 percentage points from the previous year [6]. - The company expects significant growth in earnings per share (EPS) from 1.35 yuan in 2025 to 2.82 yuan in 2027, with corresponding price-to-earnings (P/E) ratios decreasing from 100.69 to 48.32 over the same period [9][11]. Market Position and Outlook - The company is positioned in the top tier of domestic CPU and AI chip performance and ecosystem, indicating strong competitive advantages [8]. - The expected revenue growth rates for the upcoming years are 53.4% in 2025, 40.1% in 2026, and 32.9% in 2027, reflecting a robust growth trajectory [11][13].