Chipsea(SH:688595) Great Wall Securities·2025-09-17 12:54Investment Rating - The report maintains an "Increase" rating for the company [4] Core Viewpoints - The company has shown improvement in profit margins with a reduction in losses year-on-year, attributed to operational cost optimization and an increase in the sales proportion of high-value products, leading to an overall gross margin increase to 35.59% [2] - The company is actively expanding its AI edge business in response to rising demand for AI devices, aiming to create a comprehensive solution that integrates chips, algorithms, scenarios, apps, and AI [9][10] - The company continues to strengthen its position in the HarmonyOS ecosystem, successfully integrating over 300 HarmonyOS projects and achieving significant product shipments [8] Financial Summary - Revenue projections show a recovery trend, with expected revenues of 433 million in 2023, increasing to 1,513 million by 2027, reflecting a compound annual growth rate [1] - The company is expected to achieve a net profit of -0.10 million in 2025, turning positive with 0.30 million in 2026 and 0.91 million in 2027, indicating a gradual improvement in profitability [10] - The gross margin is projected to improve from 28.3% in 2023 to 42.0% by 2027, while the net margin is expected to shift from -33.0% to 6.0% over the same period [12]