Lontium(SH:688486) 招商电子·2025-05-05 14:09Core Viewpoint - Longxin Co., Ltd. focuses on high-definition video bridging and processing chips, as well as high-speed signal transmission chips, with applications in various fields including PC peripherals, displays, video conferencing systems, and AR/VR. The company is expanding into automotive and HPC sectors [1]. Financial Performance - In Q1 2025, the company's revenue was 109 million yuan, representing a year-on-year increase of 4.5% but a quarter-on-quarter decrease of 17.7%. The decline was primarily due to supply constraints, although overall order and demand trends remain positive [1]. - The gross margin for Q1 2025 was 54.43%, showing a year-on-year increase of 0.33 percentage points and a quarter-on-quarter increase of 0.2 percentage points, indicating relative stability [1]. - The net profit margin was 26.15%, reflecting a year-on-year decrease of 3.58 percentage points and a quarter-on-quarter decrease of 11.93 percentage points. Total expenses for Q1 2025 were nearly 40 million yuan, with an expense ratio of approximately 36.59% [1]. Supply Chain Strategy - The company is optimizing its supply chain system to create a dual-cycle model, enhancing supply security while achieving cost reductions. A new domestic wafer foundry is set to be added in 2024, and measures such as introducing new suppliers and negotiating prices with existing suppliers are being implemented to effectively control procurement costs [1]. R&D Focus Areas - Future R&D efforts will concentrate on automotive electronics, micro-displays, AR/VR, and HPC. The company has successfully integrated multiple video bridging and processing chips into automotive head-up display systems and infotainment systems, with nine chips passing AEC-Q100 testing and entering production for several well-known domestic and international automakers [2]. - The company is also producing 4K/8K ultra-high-definition video signal bridging chips that meet the demands of the new wave of commercial displays and VR/AR micro-display markets. Additionally, a general-purpose high-speed signal extension chip based on 12.5Gbps SERDES technology has been domestically applied in the 5G communication sector [2]. - The company is developing a vehicle-mounted SerDes chip set aimed at the high-end automotive market, which has successfully entered the trial production phase. Furthermore, R&D is ongoing for data transmission and processing chips targeting AI, HPC, and next-generation communication fields [2]. Investment Outlook - Longxin Co., Ltd. is deeply engaged in high-speed mixed-signal chips, with expectations for gradual volume growth in vehicle-mounted SerDes chips. The company is also expanding into AR/VR and server sectors. Short-term focus should be on resolving supply chain constraints and monitoring changes in customer demand. Revenue projections for 2025-2027 are anticipated to be in the billions, with corresponding net profit estimates and PE ratios provided [3].