Lontium(SH:688486) Western Securities·2026-01-06 13:14Investment Rating - The investment rating for the company is "Buy" [5] Core Views - The company is making significant progress in the automotive sector with its self-developed ADP protocol-based SerDes chips, having developed 14 automotive-grade chips certified by AEC-Q100 as of September 30, 2025 [1] - The AI chip market is projected to grow from RMB 128.9 billion in 2025 to RMB 273.9 billion in 2029, with a compound annual growth rate of 20.7%, and the company is expanding its product offerings in the AI & HPC fields [2] - The company expects revenue growth from RMB 604 million in 2025 to RMB 1.279 billion in 2027, with net profit projected to increase from RMB 181 million to RMB 429 million during the same period [3] Summary by Relevant Sections Automotive Sector - The company has successfully developed automotive-grade chips for various applications, including cockpit and driving domains, and is in the market promotion phase for its SerDes chipsets [1] - The automotive SerDes chipsets have already achieved mass production in new business areas like eBikes, and validation tests with automotive manufacturers are ongoing [1] AI Sector - The company is leveraging its high-bandwidth SerDes technology to develop solutions for AI and HPC, with revenue from this sector reaching RMB 7.48 million in the first three quarters of 2025, accounting for 1.9% of total revenue [2] - Key products include a PCIe to SATA bridge chip for AI PCs and servers, and ongoing development of PCIe/CXL/USB Retimer and Switch products [2] Financial Projections - Revenue and net profit forecasts for 2025-2027 are as follows: - Revenue: RMB 604 million (2025), RMB 904 million (2026), RMB 1.279 billion (2027) - Net Profit: RMB 181 million (2025), RMB 319 million (2026), RMB 429 million (2027) - The company anticipates continued contributions from new products like SerDes and PCIe, with a steady progress in its Hong Kong listing [3][4]