Amlogic(SH:688099) Huachuang Securities·2026-02-13 00:25Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expectation to outperform the benchmark index by over 20% in the next six months [2][8]. Core Insights - The company reported a revenue of 6.793 billion yuan for 2025, representing a year-on-year increase of 14.63%. The net profit attributable to shareholders was 871 million yuan, up 6% year-on-year. The total chip sales exceeded 174 million units, marking a growth of approximately 21.68% [2][4]. - The company anticipates a revenue growth of 10% to 20% in Q1 2026 and a full-year revenue increase of 25% to 45% for 2026 [2]. - The gross margin for 2025 was reported at 37.97%, an increase of 1.42 percentage points year-on-year, with a projected net profit of 871 million yuan for 2025, excluding share-based payment impacts [8]. - The company has established a strong partnership with Google, serving as a core chip supplier for Google's next-generation AI hardware, which is expected to drive significant growth in the coming years [8]. Financial Summary - The company’s total revenue is projected to grow from 5.926 billion yuan in 2024 to 10.760 billion yuan by 2027, with a compound annual growth rate (CAGR) of 21.2% [4]. - The net profit attributable to shareholders is expected to increase from 822 million yuan in 2024 to 1.885 billion yuan in 2027, reflecting a CAGR of 27.7% [4]. - The earnings per share (EPS) is forecasted to rise from 1.95 yuan in 2024 to 4.48 yuan in 2027, indicating strong profitability growth [4]. Product and Market Development - The company has successfully launched over 20 chip models featuring self-developed intelligent computing units, with a significant increase in shipments of 6nm chips expected to reach over 30 million units in 2026, a growth of approximately 233% [8]. - The WiFi product line has seen substantial growth, with nearly 20 million units sold in 2025, including over 7 million units of WiFi 6 chips, which is expected to exceed 10 million units in 2026 [8]. - The acquisition of ChipMic is aimed at enhancing the company's technology stack in cellular communication, optical communication, and Wi-Fi [8].