Core Viewpoint - Heshun Petroleum plans to acquire at least 34% of Kuixin Technology's equity, aiming to gain control over the company through a combination of equity purchase and capital increase, with an estimated transaction value not exceeding 540 million yuan [1][2]. Group 1: Acquisition Details - Heshun Petroleum signed a control acquisition intention agreement with Kuixin Technology and its actual controller, Chen Wanyi, to ensure control over 51% of Kuixin Technology's voting shares [1]. - The transaction will allow Heshun Petroleum to appoint two-thirds of the board members at Kuixin Technology and control its operational, personnel, and financial decisions [1]. - The total equity value of Kuixin Technology is estimated to be no more than 1.588 billion yuan, with the final transaction amount expected to be under 540 million yuan [1]. Group 2: Kuixin Technology Overview - Kuixin Technology, established in 2021, focuses on high-speed interface IP and Chiplet solutions, filling a domestic gap and gradually breaking foreign monopolies [2]. - The company has developed a complete product matrix for high-speed interface IP, covering protocols such as UCIe, HBM, ONFI, LPDDR, PCIe, eDP, and USB, with performance metrics comparable to leading foreign companies [2]. - Kuixin Technology has established strategic partnerships with international foundries like TSMC and Samsung, developing interface IP applicable from 5nm to 55nm processes [2]. Group 3: Performance Commitments - The performance commitment period for Kuixin Technology spans from 2025 to 2028, with audited revenue targets set at no less than 300 million yuan, 450 million yuan, 600 million yuan, and 750 million yuan for each respective year [3]. - Specific revenue targets for IP and high-speed interconnect products are set at no less than 105 million yuan, 157.5 million yuan, 210 million yuan, and 262.5 million yuan for the same years [3]. - The net profit for Kuixin Technology is expected to be positive for each year from 2025 to 2028 [3]. Group 4: Heshun Petroleum's Strategic Position - Heshun Petroleum operates in the refined oil circulation sector, with a complete industry chain including retail, storage, logistics, and wholesale [4]. - The company is expanding its business beyond Hunan province and is accelerating its layout in the ultra-fast charging sector, leveraging existing gas station resources [4]. - Management believes that the semiconductor IP industry has significant growth potential, prompting the strategic acquisition of Kuixin Technology to seek new performance growth points [4].

Core Viewpoint - The company, HeShun Petroleum, is diversifying into the semiconductor industry by acquiring a controlling stake in Shanghai KuiXin Integrated Circuit Design Co., Ltd. (KuiXin Technology) to seek new growth opportunities amid declining performance in its core business [2][3][7]. Group 1: Acquisition Details - HeShun Petroleum plans to acquire at least 34% of KuiXin Technology's equity through cash payment and will control 51% of the voting rights via a voting rights delegation agreement [2][3]. - The total valuation of KuiXin Technology is capped at 1.588 billion yuan, with the final transaction amount expected to be no more than 540 million yuan [2][3]. - The acquisition is structured as a "transfer + capital increase" model, with a control acquisition intention agreement signed on November 14 [3]. Group 2: Business Context - KuiXin Technology, established in 2021, focuses on integrated circuit IP and Chiplet product development, addressing computing power expansion and high-speed interconnection issues [6]. - The company has developed a strategic cooperation network with major foundries like TSMC and Samsung, and its products are utilized in data centers, AI, automotive electronics, and consumer electronics [6]. - KuiXin Technology has a performance commitment for revenue from 2025 to 2028, with targets set at no less than 300 million yuan, 450 million yuan, 600 million yuan, and 750 million yuan for each respective year [6]. Group 3: Financial Performance - HeShun Petroleum's main business, which includes gas station operations and oil logistics, has seen a decline in revenue from 39.94 billion yuan in 2022 to an expected 28.12 billion yuan in 2024, with net profit decreasing from 1.04 billion yuan to 290 million yuan over the same period [7][10]. - The company has initiated a strategic partnership with Huawei to develop supercharging stations, aiming to transform traditional energy stations into new energy stations [10]. - Despite efforts to diversify, HeShun Petroleum's revenue for the first three quarters of 2023 was 2.126 billion yuan, a slight decline of 0.13% year-on-year, with net profit dropping by 65.95% to approximately 10.9 million yuan [10][11].

Investment Rating - The investment rating for NVIDIA is "Buy" with a 6-month outlook [6]. Core Insights - NVIDIA reported record revenue of $39.3 billion for Q4 FY2024, a 78% year-over-year increase and a 12% quarter-over-quarter increase, surpassing Bloomberg consensus estimates of $38.2 billion [1]. - The company's data center business achieved a record revenue of $35.6 billion in Q4, exceeding Bloomberg consensus estimates of $34.1 billion, driven by strong sales of the Blackwell architecture [2]. - NVIDIA anticipates continued growth in computing power demand, supported by advancements in multi-modal models and inference optimization, with Blackwell architecture showing a 25-fold improvement in inference throughput compared to Hopper [4]. Revenue and Profit Dynamics - GAAP gross margin was reported at 73%, in line with Bloomberg consensus, while net profit reached $22.1 billion, exceeding expectations of $19.8 billion, resulting in a GAAP net profit margin of 56.2% [1]. - The company expects gross margins to recover to 75% by the end of FY2026 as production capacity ramps up [3]. Business Segment Performance - The networking segment is expected to see growth in the next quarter, with significant revenue increases from Spectrum X and NVLink Switch, as major cloud service providers build large AI infrastructures [5]. - Enterprise AI revenue nearly doubled year-over-year, driven by demand for model fine-tuning and GPU-accelerated data processing [5]. Future Projections - Revenue forecasts for FY2026-2028 have been raised to $228 billion, $335 billion, and $374.2 billion respectively, with GAAP net profit projections also increased to $124.9 billion, $175 billion, and $200 billion [6].