Shenzhen Intellifusion Technologies (SH:688343) Minsheng Securities·2025-09-30 06:22Investment Rating - The report initiates coverage with a "Buy" rating for the company [6]. Core Insights - The company is positioned as a leader in the AI inference market, leveraging its "algorithm-chip" integration to develop products across consumer, enterprise, and industry segments [10][24]. - The AI inference chip market in China is projected to grow from 11.3 billion to 162.6 billion yuan from 2020 to 2024, with a CAGR of 94.9% [3]. - The company has secured significant orders, including 1.607 billion yuan in AI computing service contracts, indicating strong market demand [1]. Summary by Sections 1. Full Industry Chain Development - The company utilizes "algorithm + chip" as a foundational advantage to expand sales of AI products and solutions across three scenarios: consumer, enterprise, and industry [10]. - The company has established a stable shareholding structure, with the chairman holding 25.27% of the shares, ensuring strong governance [15]. 2. Expanding Inference Market - The AI inference market is expected to see continuous expansion, driven by advancements in large model technologies and increasing investment in the AI sector [24][25]. - The company has developed the Deepseek R1 model, which demonstrates that software innovations can compensate for hardware limitations, thus promoting overall industry growth [2][48]. 3. Application Scenarios - The company is expanding its product offerings in consumer-grade applications, including AI-enabled devices like smart glasses and educational tools [55]. - In the enterprise sector, the company focuses on inference chips to support cloud, edge, and terminal business scenarios, enhancing its service offerings [65]. 4. Revenue Growth and Profitability - The company is entering a high growth phase, with projected revenues of 1.285 billion, 1.584 billion, and 1.936 billion yuan for 2025, 2026, and 2027, respectively [5]. - The company is expected to reduce losses significantly, with net profits projected to improve from -579 million yuan in 2024 to -259 million yuan in 2027 [5]. 5. Financial Forecast and Investment Recommendations - The report forecasts significant revenue growth driven by the company's comprehensive AI strategy and product development across various market segments [3][5]. - The company is expected to achieve a PS ratio of 23X, 19X, and 15X for the years 2025, 2026, and 2027, respectively, indicating strong valuation potential [3].