EMPYREAN(SZ:301269) Zhongyuan Securities·2025-10-23 09:55Investment Rating - The report maintains an investment rating of "Outperform the Market" for the computer industry [2] Core Views - The domestic software industry showed a revenue growth of 12.6% year-on-year for the first eight months of 2025, with a total revenue of 9.64 trillion yuan, indicating a continuous recovery trend [10][11] - The AI server market demand in China is increasingly concentrated in the internet sector, reflecting the impact of domestic chip localization trends on market competition [3] - The HarmonyOS 5 has surpassed 20 million terminal devices, with an upcoming significant upgrade to HarmonyOS 6 expected to enhance system capabilities [2][32] Summary by Sections Industry Data - The software industry experienced a profit growth of 13.0% year-on-year for the first eight months of 2025, with total profits reaching 13,186 billion yuan, outpacing revenue growth by 0.4 percentage points [11] - The IC design sector was the highest-performing sub-industry, with a year-on-year growth of 17.7% for the same period [15] - The domestic AI chip market is projected to grow from 21 billion USD to 38 billion USD by 2025, with a notable increase in the market share of domestic chip manufacturers [34] Localization - The localization of domestic chips is accelerating, with the AI chip localization rate increasing from 34% in the second half of 2024 to 35% in the first half of 2025 [33] - Huawei's HarmonyOS has become the second-largest mobile operating system in China and the third globally, with a market share of 17% in Q2 2025 [45][46] - The EDA sector is experiencing increased activity, with domestic companies like Huada Empyrean enhancing their product offerings to meet local demand [59][68] Computing Power - The demand for AI servers is expected to concentrate among internet companies, leading to a decrease in supply concentration [3] - OpenAI has signed significant supply agreements with major chip manufacturers, indicating a diversification in chip demand [3] - The report highlights the rapid growth of domestic AI chip companies, with notable revenue increases for companies like Cambricon and Haiguang [39][41] AI - DeepSeek has made significant advancements in optimizing AI models for domestic chips, addressing ecological barriers posed by CUDA [3] - The report emphasizes the importance of collaboration between software and hardware in the AI industry, particularly in the context of domestic chip development [3][5]