Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [1][6]. Core Insights - The company is actively advancing its 12-inch production expansion, with revenue from manufacturing and services expected to reach 333 million and 288 million yuan respectively in the first half of 2025, reflecting year-on-year growth of 18.69% and a decline of 5.5% [3]. - The company is enhancing its silicon photonics layout, integrating resources from its 8/12-inch CMOS compatible process lines to establish a collaborative development system, achieving significant progress in mass production of silicon photonics technology [4]. - A stock incentive plan has been proposed, aiming to grant 35.09 million restricted shares to up to 300 individuals, with performance targets set for revenue and R&D expenditures from 2027 to 2029 [5]. Financial Projections - The company is projected to achieve revenues of 1.74 billion, 2.57 billion, and 3.43 billion yuan in 2025, 2026, and 2027 respectively, with net profits expected to be -160 million, -1.22 billion, and -1.73 billion yuan [6][10]. - The anticipated profit pressure is attributed to ongoing 12-inch expansion efforts and the associated depreciation from new equipment, with expectations for profit improvement as capacity is gradually released [6]. Stock Performance - The stock has shown a performance trend with fluctuations, indicating a potential recovery phase as the company progresses with its expansion plans [8].

Core Viewpoint - Guangli Micro (301095) focuses on enhancing chip yield and rapid monitoring technology, offering a comprehensive solution that integrates EDA software, circuit IP, WAT testing equipment, and yield improvement technology [1] Group 1: EDA Software Development - The company has consistently invested in R&D for EDA software, expanding into a more diverse range of tools [1] - New software products include big data analysis and management series (DE-G, DE-YMS, DE-DMS), and manufacturability design software CMP simulation modeling tools [1] - The company has established a business layout in the DFT (Design for Testability) field [1] Group 2: Testing Equipment Advancements - Guangli Micro has launched upgraded WAT testing equipment (T4000 and T4000Max models), wafer-level reliability testing, and wafer-level aging testing equipment [1] - These advancements aim to broaden the application scenarios of the company's products [1] Group 3: Strategic Acquisitions - To seize opportunities in the silicon photonics industry, the company completed a strategic acquisition of LUCEDA NV, a leading firm in silicon chip design automation (PDA) software, in August 2025 [1] - This acquisition marks a significant expansion from traditional EDA into the PDA field [1] Group 4: Market Position and Growth - The development and launch of these software and hardware products are expected to help the company expand its customer base and market space [1] - This strategy aims to enhance the company's competitive position in the market and provide new growth engines for its performance [1]

Financial Performance - The company reported a revenue of 658.94 million yuan for the first half of the year, representing a year-on-year increase of 6.85% compared to 616.71 million yuan in the same period last year [1][3] - The net profit attributable to shareholders was 127.61 million yuan, marking a turnaround from a loss of 15.13 million yuan in the previous year [1][3] - The net profit excluding non-recurring gains and losses was -389.84 million yuan, compared to a loss of 73.54 million yuan in the same period last year [1] Cash Flow and Assets - The net cash flow from operating activities was 221.15 million yuan, an increase of 7.88% from 204.99 million yuan in the previous year [1] - The net assets attributable to shareholders at the end of the reporting period were 14.77 billion yuan, a slight increase of 0.62% from 14.68 billion yuan at the end of the previous year [1] - Total assets increased by 3.34% to 24.86 billion yuan from 24.06 billion yuan at the end of the previous year [1] Research and Development - The company invested 364.01 million yuan in R&D during the reporting period, a significant increase of 221.21% year-on-year [1] Industry Developments - The 28nm 12-inch integrated circuit production line project is progressing well, with the main plant and CUB building already topped out [2] - The company is actively developing multiple process routes including 55nm, 40nm, and 28nm simultaneously [2] - The company has made breakthroughs in the silicon photonics industry, achieving mass production of silicon photonics technology and launching SiN silicon photonics PDK 1.5, which has received customer recognition [2] Business Segments - The manufacturing and service business segment achieved a revenue of 333.03 million yuan, reflecting an 18.69% year-on-year growth [2] - The company is focusing on technology and product innovation, expanding strategic customer outreach, and promoting products in key areas such as silicon photonics [2] - The 65nm 12-inch production line continues to attract major clients and has introduced over 60 new products [2]

Core Viewpoint - The company reported strong financial performance in the first half of 2025, with significant growth in revenue and net profit, driven by software and equipment business recovery [1][2]. Financial Performance - In 1H25, the company achieved revenue of 246 million, a year-on-year increase of 43% - The net profit attributable to shareholders was 16 million, up 518% year-on-year - The non-recurring net profit was a loss of 1 million, narrowing the loss by 70% year-on-year - In Q2 2025, revenue reached 179 million, a year-on-year increase of 404% - The net profit attributable to shareholders for Q2 was 29 million, a 16% increase year-on-year - The non-recurring net profit for Q2 was 21 million, remaining flat year-on-year [1]. Business Development Trends - The software business saw a revenue of 91 million in 1H25, growing by 50% year-on-year - The equipment business generated revenue of 153 million, a 38% year-on-year increase, continuing the recovery trend since Q4 2024 - The company anticipates a 20% growth in equipment business for the full year, supported by strong demand for yield-related projects and successful sales of new software products - The gross margin declined, primarily due to a 15% drop in the gross margin of software development and licensing, attributed to high demand and increased outsourcing during the delivery of new projects [2]. Strategic Acquisition - The company announced the acquisition of LUCEDA, a leader in silicon photonics design software, on August 12 - LUCEDA's business includes complete software for silicon photonic chip design and PDK development, which aligns with the growing global market for silicon photonics modules - The acquisition is expected to enhance the company's capabilities in the silicon photonics sector, allowing it to replicate its semiconductor manufacturing solutions in this new area - LUCEDA's projected revenue for 2024 and 2025 is 38 million and 42 million, respectively, with net profit expected to be break-even [3]. Profit Forecast and Valuation - Following the acquisition of LUCEDA, the company has adjusted its revenue forecasts for 2025 and 2026 upwards by 3% and 5% to 703 million and 886 million, respectively - The net profit forecasts for 2025 and 2026 have been increased by 4% and 6% to 138 million and 198 million, respectively - The company maintains an outperform rating, with a target price raised by 55% to 97, indicating a 16% upside potential from the current stock price [4].