Company Overview - Moer Thread is one of the few domestic manufacturers capable of mass production and sales of full-function GPUs, focusing on AI, digital twins, and scientific computing [1][2] - The company has a strong management team with executives from NVIDIA and AMD, enhancing its competitive edge through the self-developed MUSA architecture [2] - Moer Thread's product matrix covers various scenarios from smart computing centers to end devices, having successfully developed and mass-produced four generations of full-function GPU architectures [2] Business Segments - The company's main business is divided into three categories: AI intelligent computing, professional graphics acceleration, and desktop graphics acceleration [2] - AI intelligent computing is expected to become the core growth engine starting in 2024, with projected revenue of 670 million yuan in the first half of 2025, accounting for 95% of total revenue [2] Market Potential - The GPU industry in China has shown rapid growth, with market size increasing from 38.48 billion yuan in 2020 to an estimated 163.82 billion yuan in 2024 [3] - The global GPU market is projected to grow from 1.05 trillion yuan in 2024 to 3.61 trillion yuan by 2029, indicating significant growth potential for domestic GPU manufacturers [2][3] Financial Performance - Moer Thread's revenue is expected to grow significantly, with projected revenues of 46 million yuan, 124 million yuan, and 438 million yuan for the years 2022 to 2024, respectively [3] - The company anticipates a revenue increase of 177.79% in 2025 compared to the previous year, with a reduction in net profit loss by 27.82% [3] IPO Details - Moer Thread's IPO involves issuing 70 million shares and raising 8 billion yuan, with funds allocated to three major projects and working capital [4] - The company has a high issuance price of 114.28 yuan per share, the highest for a new stock on the Sci-Tech Innovation Board in the past two years [6] Valuation and Market Sentiment - The company has a price-to-sales ratio (TTM) of 56.84, which is lower than comparable companies, suggesting a potential valuation advantage [6] - Recent trends indicate that new stocks on the A-share market have performed well, with an average first-day increase of 324.17% for new listings [5][6] - Given the strong fundamentals and market conditions, there is optimism for Moer Thread's first-day performance, potentially reaching an average increase of 191.48% [7]

Core Viewpoint - The upcoming IPO of Moer Thread, a leading domestic GPU manufacturer, is highly anticipated due to its rapid revenue growth and significant market potential in the AI and GPU sectors. The company is expected to perform well on its first trading day, potentially yielding substantial returns for investors. Company Overview - Moer Thread specializes in the research, design, and sales of GPUs and related products, focusing on high-performance computing areas such as AI and digital twins [1] - The company has a strong management team with experience from major firms like NVIDIA and AMD, and has developed four generations of full-function GPUs that meet or exceed international standards [2][3] - The company's main business segments include AI computing, professional graphics acceleration, and desktop graphics acceleration, with AI computing projected to become the core growth driver starting in 2024 [2] Financial Performance - Moer Thread's revenue is expected to grow significantly, with projections of 0.46 billion CNY in 2022, 1.24 billion CNY in 2023, and 4.38 billion CNY in 2024, reflecting year-on-year growth rates of 169.01% and 253.65% respectively [3] - The company anticipates a revenue increase of 177.79% in 2025, with a forecasted revenue of 2.42 billion CNY [3] Market Potential - The global GPU market is projected to grow from 1.05 trillion CNY in 2024 to 3.61 trillion CNY by 2029, indicating strong demand for GPUs [2] - The Chinese AI chip market is expected to expand from 1.43 trillion CNY in 2024 to 13.37 trillion CNY by 2029, with a compound annual growth rate of 53.7% [3] IPO Details - Moer Thread's IPO involves the issuance of 70 million shares, raising 8 billion CNY, with funds allocated for various R&D projects and working capital [4] - The company has a high issuance price of 114.28 CNY per share, the highest for a new stock on the Sci-Tech Innovation Board in the past two years [7] Valuation and Market Sentiment - The company has a price-to-sales ratio of 56.84, which is lower than comparable companies, suggesting a potential valuation advantage [6] - Recent trends indicate that new stocks on the Sci-Tech Innovation Board have seen significant first-day gains, with an average increase of 191.48% for the last ten listings [6][7]

Market Overview - The Hong Kong stock market experienced significant fluctuations, with the Hang Seng Index closing at 23,831 points, down 145 points or 0.61% [1][5] - The market turnover decreased to 82.799 billion, with net inflows of 484 million from the Stock Connect [1][5] - The US stock market saw all three major indices rise, with the Dow Jones up 1.08% and the S&P 500 up 0.98% [2] Investment Opportunities - The report emphasizes the importance of selecting undervalued sectors and companies in the current market environment, particularly in technology and state-owned enterprises [3] - Key sectors to focus on include artificial intelligence, semiconductors, and industrial software, which are expected to benefit from long-term growth opportunities [3] - The report suggests that companies in the upstream non-ferrous metals sector may benefit from expectations of interest rate cuts by the Federal Reserve [3] Company Highlights - JD Health saw a significant drop of 8.6% due to concerns over semiconductor demand and tech stock sell-offs [1] - Xiaomi Group's stock increased by 1.01% after the company repurchased 13.5 million shares for 508 million HKD [1] - Tencent Holdings and Alibaba are highlighted as key players in the technology sector, with Tencent recently repurchasing shares and Alibaba launching new AI products [12][9] Sector Performance - The report notes that local real estate, software, and 5G concept sectors experienced the largest declines, while gold stocks performed well [1] - The semiconductor industry is projected to see explosive growth, with China's AI chip market expected to grow from 142.537 billion to 1,336.792 billion by 2029, reflecting a compound annual growth rate of 53.7% [9] - The report recommends focusing on leading companies in the domestic semiconductor foundry industry, such as Hua Hong Semiconductor and SMIC [9]

Core Viewpoint - Moore Threads has successfully launched its IPO on the Sci-Tech Innovation Board, with an issue price of 114.28 yuan per share, resulting in a post-issue market capitalization of approximately 53.7 billion yuan, marking it as the largest IPO project on the Sci-Tech Innovation Board since 2025 [2][3][4]. Group 1: Financial Performance - The company achieved significant revenue growth, with 7.02 billion yuan in revenue for the first half of 2025, up from 4.38 billion yuan in 2024 and just over 40 million yuan in 2022 [6][12]. - Despite the rapid revenue increase, the company has incurred substantial losses, totaling 5.486 billion yuan over the past three and a half years, necessitating the 8 billion yuan raised from the IPO to support ongoing high-intensity technology iterations and to address liquidity needs [3][8]. - The company reported a net cash flow from operating activities of -1.164 billion yuan for the first half of 2025, leading to increased short-term borrowings from 0 at the end of 2022 to 1.217 billion yuan by mid-2025 [8][9]. Group 2: Customer Structure and Market Position - Moore Threads has a highly concentrated customer base, with the top five customers accounting for 98.29% of revenue in the first half of 2025, primarily from large B-end clients such as telecom operators and intelligent computing centers [11][12]. - The company’s revenue structure indicates that it earns not only from selling graphics cards but also from integrated computing devices, with significant contributions from major clients [7][12]. Group 3: Research and Development - The company has invested heavily in R&D, with cumulative expenditures reaching 3.81 billion yuan from 2022 to 2024, which exceeds its revenue during the same period [8]. - The company aims to achieve profitability by 2027, projecting revenues of 5.983 billion yuan and a gross margin of 61%, although this includes approximately 307 million yuan in government subsidies [14][15][16]. Group 4: Technology and Market Outlook - The founder emphasized the competitive advantages of the MUSA architecture, which integrates GPU hardware and software, offering superior versatility and market adaptability compared to other technologies like ASIC and GPGPU [18][20]. - The GPU market is expected to grow significantly, with forecasts predicting the Chinese GPU market to reach 1.363 trillion yuan by 2029, driven by increasing demand across various applications [28][30]. - The company plans to focus on six key areas for future development in computing services, including deep integration of hardware and software, expansion into international markets, and sustainable development initiatives [30][31]. Group 5: Market Valuation - At the IPO price of 114.28 yuan, Moore Threads has a market valuation exceeding 53.7 billion yuan, corresponding to a static price-to-sales ratio of 122.51 for 2024, raising questions about whether this valuation is sustainable [32]. - The funds raised from the IPO will primarily be allocated to three R&D projects: next-generation AI training and inference chips, new graphics chips, and AI SoC chips [32].

Core Viewpoint - Moore Threads has successfully launched its IPO on the Sci-Tech Innovation Board, achieving a total market value of approximately 53.7 billion yuan, marking the largest IPO financing scale since 2025 [2][4]. Group 1: Financial Performance - The company reported a significant revenue increase, with 2025 first-half revenue reaching 702 million yuan, compared to 438 million yuan in 2024 and just over 40 million yuan in 2022 [7][8]. - Despite rapid revenue growth, the company has incurred substantial losses, totaling 5.486 billion yuan over the past three and a half years, necessitating the 8 billion yuan raised from the IPO to support ongoing R&D and operational needs [3][10]. - The company’s cash flow from operating activities was negative 1.164 billion yuan in the first half of 2025, leading to increased short-term borrowings from 0 to 1.217 billion yuan within six months [10][11]. Group 2: Customer Structure and Market Position - Moore Threads has a highly concentrated customer base, with the top five customers accounting for 98.29% of revenue in the first half of 2025, primarily from large B-end clients such as telecom operators and intelligent computing centers [13]. - The company’s revenue model includes not only sales of graphics cards but also integrated computing devices, with significant contributions from major clients [8][13]. Group 3: R&D and Technology Strategy - The company has invested 3.81 billion yuan in R&D from 2022 to 2024, which exceeds its revenue during the same period, indicating a strong commitment to technological advancement [10]. - Moore Threads aims to achieve profitability by 2027, projecting a revenue target of 5.983 billion yuan and a gross margin of 61% for that year, although this includes approximately 307 million yuan in government subsidies [15][16]. Group 4: Market Outlook and Competitive Landscape - The CEO highlighted the explosive growth in demand for AI computing acceleration chips, asserting that GPUs remain the dominant chip type in the AI market despite competition from ASICs and GPGPUs [21][22]. - The Chinese GPU market is projected to grow to 1.363 trillion yuan by 2029, indicating significant long-term growth potential for the company [29]. - The company plans to focus on six strategic directions in the computing service sector, including deep integration of software and hardware, international market expansion, and sustainable development initiatives [30]. Group 5: Valuation and Investment Considerations - At an IPO price of 114.28 yuan per share, Moore Threads has a static price-to-sales ratio of 122.51 times for 2024, raising questions about whether this valuation is sustainable [33]. - The funds raised from the IPO will primarily be allocated to three R&D projects: next-generation AI training and inference chips, new graphics chips, and AI SoC chips [33].