Cambricon(SH:688256) HTSC·2025-10-22 07:50Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 1,679.40 [1]. Core Insights - The company reported a significant year-on-year revenue increase of 1,332.5% in Q3 2025, with revenue reaching RMB 1.727 billion, although it experienced a quarter-on-quarter decline of 2.4% [6]. - The net profit attributable to the parent company for Q3 2025 was RMB 567 million, marking a year-on-year increase of 391.5% but a quarter-on-quarter decrease of 17.0% [6]. - The company is expected to benefit from the growing domestic demand for computing power chips, particularly in AI applications, leading to a projected revenue of over RMB 6 billion in 2025 [8][9]. Financial Performance - For the fiscal year 2024, the company is projected to generate revenue of RMB 1.174 billion, with a growth rate of 65.56% [5]. - The forecast for 2025 estimates revenue to reach RMB 6.396 billion, representing a staggering growth of 444.57% [5]. - The net profit for 2025 is expected to be RMB 2.095 billion, with a significant increase of 563.13% compared to the previous year [5]. Market Position and Outlook - The company is positioned as a leading player in the domestic AI chip market, with expectations of achieving its first annual profit in 2025 [9]. - The company has completed a fundraising project totaling RMB 3.985 billion, aimed at enhancing its capabilities in chip and software platform development for large models [8]. - The anticipated growth in the AI sector and the company's strategic positioning are expected to drive substantial increases in chip sales and overall revenue in the coming years [9].