HSSM(SZ:002290) GUOTAI HAITONG SECURITIES·2026-01-24 15:33Investment Rating - The investment rating for the company is "Accumulate" with a target price of 71.53 CNY [5][12]. Core Insights - The company is optimistic about its long-term growth potential, particularly following the launch of the third-generation high-performance CPU+NPU hybrid chip by its strategic investment, Yizhi Electronics. This product directly competes with NVIDIA's Grace series [2][12]. - The company anticipates significant revenue growth, with projected earnings per share (EPS) of 0.83 CNY, 1.19 CNY, and 1.68 CNY for the years 2025 to 2027, respectively [12][13]. - The strategic investment in Yizhi Electronics is expected to reshape the company's valuation, with a projected market capitalization of 177.48 billion CNY based on a 60x PE ratio for 2026 [12][17]. Financial Summary - Total revenue is projected to grow from 2,340 million CNY in 2023 to 4,087 million CNY in 2027, reflecting a compound annual growth rate (CAGR) of approximately 16% [4][13]. - Net profit attributable to the parent company is expected to increase significantly from 83 million CNY in 2023 to 417 million CNY in 2027, with a notable growth rate of 111.2% in 2025 [4][13]. - The company's return on equity (ROE) is projected to rise from 11.7% in 2023 to 24.2% in 2027, indicating improved profitability [4][13]. Market Data - The company's stock has a 52-week price range of 15.76 CNY to 64.13 CNY, with a current price of 59.60 CNY [6][12]. - The total market capitalization is approximately 14,787 million CNY, with a total share count of 248 million [6][12]. Business Development - The launch of the TF9000 AI CPU series marks a significant advancement in the company's product offerings, with performance improvements of 30% and cost reductions of 30% compared to previous models [17][21]. - The company is actively building an ecosystem around its AI solutions, collaborating with multiple partners to create integrated solutions in sectors such as smart healthcare and intelligent manufacturing [18][21].