Cambricon(688256) 民生证券·2024-05-22 05:00Investment Rating - The report gives a "Buy" rating for the company, with a target price of 187.00 CNY [2]. Core Insights - The company is a leading player in the domestic AI chip market, providing integrated solutions for cloud, edge, and terminal computing, with a strong focus on R&D and product innovation [5][12]. - The AI industry in China is expected to experience rapid growth, driven by increasing demand for AI computing power and significant procurement plans from major telecom operators [18][23]. - The company has set ambitious revenue targets through its stock incentive plan, aiming for revenues of at least 11 billion CNY in 2024 and a cumulative 46 billion CNY by 2026 [11][12]. Summary by Sections 1. Company Overview - The company specializes in AI chip development and has a clear ownership structure with experienced leadership [5]. - It has achieved a compound annual growth rate (CAGR) of 111% in revenue from 2017 to 2023, with significant growth in its intelligent computing cluster system business [6][7]. 2. Market Potential - The demand for AI computing power in China is projected to grow at a CAGR of 33.9% from 2022 to 2027, reaching 1117.4 EFLOPS by 2027 [18]. - Major telecom operators have announced substantial procurement plans for AI servers, indicating a robust market environment [23]. 3. Financial Projections - The company forecasts revenues of 1.536 billion CNY in 2024, 2.674 billion CNY in 2025, and 3.342 billion CNY in 2026, with corresponding price-to-sales (PS) ratios of 51X, 29X, and 23X [2][6]. 4. R&D and Product Development - The company maintains a high R&D expenditure, with a focus on developing next-generation AI processors and software platforms [8][25]. - It has a strong patent portfolio, with over 2,639 applications filed, indicating a commitment to innovation and technology leadership [8][9]. 5. Business Segments - The company's revenue is primarily derived from its intelligent computing cluster system business, which accounted for 85.22% of total revenue in 2023 [9][10]. - It offers a diverse range of products, including cloud and edge computing solutions, IP licensing, and software, catering to various industries [12][13].