Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - In the first half of 2025, the company achieved revenue of 3.33 billion yuan, a year-on-year increase of 10.42%, and a net profit attributable to shareholders of 497 million yuan, a year-on-year increase of 25.93% [2][6]. - In the second quarter of 2025, the company reported revenue of 1.80 billion yuan, a year-on-year increase of 9.94% and a quarter-on-quarter increase of 17.72%, with a net profit of 308 million yuan, a year-on-year increase of 31.46% and a quarter-on-quarter increase of 63.90% [2][6]. - The growth in sales of WiFi6 and 6nm chips significantly contributed to the company's performance, with the second quarter's results exceeding expectations [2][11]. Summary by Sections Financial Performance - The company’s revenue for the first half of 2025 was 3.33 billion yuan, with a net profit of 497 million yuan, reflecting strong growth in new product sales [2][11]. - In Q2 2025, the company achieved a revenue of 1.80 billion yuan and a net profit of 308 million yuan, with a gross margin of 37.29%, showing continuous improvement [11]. Product Sales and Market Expansion - The sales of WiFi6 and 6nm chips have seen significant growth, with smart home product sales increasing by over 50% year-on-year in the first half of 2025 [11]. - The company has launched 19 commercial chips with self-developed edge computing capabilities, with over 9 million units shipped in the first half of 2025, surpassing the total shipments for 2024 [11]. - The W series chips saw sales exceeding 8 million units in the first half of 2025, with Q2 sales breaking 5 million units, including over 1.5 million units of WiFi6 chips [11]. Future Outlook - The company is expected to maintain growth driven by diverse product lines, continuous expansion into overseas markets, and increasing demand in sectors like automotive and AIoT [11]. - Projected net profits for 2025-2027 are estimated at 1.10 billion, 1.44 billion, and 1.79 billion yuan respectively, supporting the "Buy" rating [11].

Core Viewpoint - The article highlights the emergence of Jihao Technology as a potential unicorn, emphasizing its innovative approach in the fingerprint recognition market through a combination of algorithms and chips, which has led to significant growth and market penetration [2][3][4]. Group 1: Company Overview - Jihao Technology was founded in 2020 and has quickly established itself in the competitive fingerprint recognition market, projecting to ship 140 million chips and generate over 400 million yuan in revenue by 2024 [2][14]. - The company's core product is an AI-driven optical fingerprint chip, which has been adopted by major smartphone brands such as OPPO, Xiaomi, and Honor [2][3]. Group 2: Founder Background - The founder and CEO, Chen Keqing, has a strong background in computer science and experience in facial recognition technology from his time at Megvii Technology [3][4]. - Chen identified a gap in the market for fingerprint recognition, noting that despite the rise of facial recognition, the demand for fingerprint unlocking remained strong in China [4]. Group 3: Technological Innovation - Jihao Technology's success is attributed to its dual focus on algorithm and chip development, allowing for enhanced performance in challenging conditions [5][9]. - The company employs a demand-driven approach to product development, ensuring that its technology addresses real user needs and pain points [7][10]. Group 4: Market Strategy - The company has successfully collaborated with major clients like OPPO and Honor, adapting its technology to meet the evolving demands of the smartphone market, including the introduction of side-mounted fingerprint solutions for foldable devices [10][12]. - Jihao Technology aims to expand its market reach beyond smartphones to include AR/VR devices and other smart hardware, anticipating a growing need for biometric authentication in these areas [15]. Group 5: Future Outlook - The company is positioned to benefit from the increasing integration of AI in consumer electronics, with a vision to make biometric authentication more accessible and affordable [16]. - Jihao Technology's long-term strategy includes leveraging its established presence in the smartphone market while exploring opportunities in edge computing and smart devices [15][16].