Lontium(SH:688486) Western Securities·2025-11-18 12:27Investment Rating - The report maintains a "Buy" rating for Longxin Co., Ltd. (688486.SH) [5] Core Insights - Longxin Co., Ltd. is actively developing high-speed data transmission products for AI applications, with PCIe expected to become a new growth point. The company leverages its technology in mixed-signal fields to create chips for AI training, inference, and data storage [1][5] - The automotive electronics segment is expanding, with successful market promotion of the vehicle SerDes chipsets and continuous development of smart cockpit and vehicle-side applications [2] - The traditional bridging business shows steady growth, with the company maintaining its leading position in the domestic market and ranking sixth globally in sales and market share of high-definition video bridging chips [3] Financial Performance Summary - For the first three quarters of 2025, Longxin Co., Ltd. achieved revenue of 389 million yuan, a year-on-year increase of 16.67%, and a net profit attributable to shareholders of 125 million yuan, up 32.47% year-on-year [3] - Revenue projections for 2025-2027 are estimated at 705 million, 1.119 billion, and 1.450 billion yuan, respectively, with net profits expected to be 206 million, 342 million, and 428 million yuan [3][4] - The company’s earnings per share (EPS) are projected to grow from 0.77 yuan in 2023 to 3.21 yuan in 2027, reflecting strong growth potential [4] Product Development and Market Position - The company has successfully developed a 12.5Gbps SerDes technology for high-end automotive markets, addressing the demand for long-distance video transmission and ultra-high-definition display [2] - Longxin Co., Ltd. is expanding its product line in high-definition video bridging and processing chips, with new products expected to be shipped in the second half of 2025 [3]