Market Trends - The domestic market indices showed a slight decline, with the Shanghai Composite Index closing at 3,909.52, down 0.37%, and the Shenzhen Component Index at 13,277.36, down 0.39% [4]. Industry Commentary - The communication industry is witnessing significant developments, particularly with Marvell's proposed acquisition of Celestial AI for approximately $3.25 billion, which is expected to accelerate the arrival of the Optical Interconnect (OIO) era within two years. The acquisition includes a cash component of $1 billion and approximately 27.2 million common shares, with additional performance-based payments potentially bringing the total to $5.5 billion [6]. - Celestial AI's technology aims to enhance the efficiency of AI clusters, achieving over twice the energy efficiency of copper interconnects and significantly reducing latency and power consumption. The technology is expected to contribute substantial revenue starting in the second half of the 2028 fiscal year [6]. - The successful launch of the Zhuque-3 rocket marks a significant milestone in commercial aerospace, with expectations for a substantial increase in launch capacity by 2026. This success is anticipated to alleviate the current bottleneck in national rocket launch capabilities [10]. Derivative Research - The investment value of the BaiRun convertible bond is highlighted, with a remaining term of 1.82 years and a bond balance of 1.127 billion yuan. The bond's market price is 121.84 yuan, with a conversion premium of 154.25% [11]. Key Recommendations - The report suggests focusing on several key areas within the communication and aerospace sectors, including: 1. CPO/OIO technologies: Companies such as Tianfu Communication, Zhongji Xuchuang, and others are recommended for investment [10]. 2. Domestic computing power: Companies like ZTE, Unisoc, and Inspur Information are highlighted as potential investment opportunities [10]. 3. Commercial aerospace: Companies such as Chaojie Co., Yinbang Co., and others are noted for their growth potential in the commercial aerospace sector [10]. Overall Market Performance - The overall market showed an upward trend during the week of December 1-5, 2025, with the Shenwan Communication Index rising by 3.69% and the ChiNext Index increasing by 1.86%. The satellite communication sector led the gains with an 11.60% increase [10].

Macro Insights - In October 2025, industrial enterprises' profits fell to -5.5% year-on-year from 21.6% in September, while revenue growth also declined to -3.3% from 3.1% [2] - The cash flow of industrial enterprises continues to improve, with cash and short-term investments rising to 5.3% year-on-year in September from 5% in August [2] Fixed Income Analysis - The report discusses the transition of China's economy into a new phase of old and new driving forces, emphasizing the need for a new framework for fundamental analysis [2] Consumer Sector Strategy - The real estate cycle, particularly changes in real estate prices, is crucial for assessing the recovery of consumption in 2026, with expectations of structural stabilization in housing prices [3] - The current allocation and valuation of the essential consumer sector are at historical lows, indicating a high probability of a bottoming out, suggesting opportunities for investment [3] Aerospace and Defense - The report highlights the advancements in reusable rocket technology, with China actively developing rockets like Zhuque-3 and Long March 12A, which are expected to enhance space transportation capacity and reduce costs [5] - The success of reusable rockets is anticipated to accelerate the construction of large satellite constellations, particularly in satellite internet [5] Company-Specific Insights - BOSS Zhipin (2076 HK) is rated "Buy" with a target price of 107.6 HKD, benefiting from its leading position in online recruitment and expected steady profit growth [6] - Advantest (6857 JP) is also rated "Buy" with a target price of 23,000 JPY, poised to benefit from the increasing complexity of AI chips and the growth of the semiconductor testing market [6] - Gaotu Group (GOTU US) reported a revenue of 1.58 billion CNY for Q3 2025, a year-on-year increase of 30.7%, with a focus on improving profitability through AI technology [9] - Atour (ATAT US) achieved a revenue of 2.628 billion CNY in Q3 2025, reflecting a year-on-year growth of 38.4%, with a strong outlook for both hotel and retail segments [10] - Zhongjiao Holdings (839 HK) reported a revenue of 7.363 billion CNY for FY25, indicating a year-on-year growth of 11.9%, transitioning towards a focus on internal growth and value enhancement [10]

Summary of Conference Call for He Sheng New Material and Yi Zhi Electronics Company and Industry Overview - **Company**: He Sheng New Material - **Industry**: AI Chip and Electronics Key Points and Arguments 1. He Sheng New Material achieved steady growth through high capacity utilization and optimization of downstream customers, including Panasonic, Hitachi, LG, Samsung, and Midea, focusing on cost reduction and efficiency rather than large-scale expansion to support the long-term development of the chip industry [2][3] 2. The company strategically invested in Yi Zhi Electronics to deepen its involvement in the AI chip sector, planning to empower Yi Zhi Electronics and establish a foothold in the chip industry [2][3] 3. Yi Zhi Electronics specializes in server and CPU development, having mass-produced two generations of chips, with the third generation design nearing completion and entering the tape-out and mass production phase [2][4] 4. The CPU from Yi Zhi Electronics integrates NPU functionality, targeting three main customer categories: major telecom operators and financial institutions (Category A), leading internet companies (Category B), and inspection robots and factory AI applications (Category C), with approximately 8,000 computing nodes delivered this year for cloud gaming, cloud mobile, and video transcoding [2][4] 5. Yi Zhi Electronics has open-sourced a complete computing framework compatible with the CUDA ecosystem and major domestic GPU manufacturers, achieving compatibility with around 40 hardware and software vendors without requiring special versions [2][5][6] 6. The chips from Yi Zhi Electronics offer unique advantages in the AI inference era, integrating neural network computing with general computing to enhance data flow processing efficiency and reduce power consumption, suitable for electric vehicle factories and large-scale automation industries [2][7] 7. The third-generation product is expected to be mass-produced in 2026, with a projected performance improvement of 30% [2][7] 8. Yi Zhi Electronics' future strategy focuses on generalization and AI integration, aiming to create a broadly compatible ecosystem and develop multi-functional processors to adapt to large models and changing computing frameworks [2][8][9] 9. HiSilicon Technology plans to shift from the x86 ecosystem to the ARM ecosystem, emphasizing collaboration with Yi Zhi Electronics to support vertical applications and overall business development [2][10] 10. Yi Zhi Electronics has received three repeat orders from last year to this year, indicating strong market competitiveness and customer recognition, with further growth potential anticipated for the next year [2][11] 11. The company maintains its competitive edge through technological innovation, including self-developed NPU units and an open-source computing framework, ensuring user-friendly product compatibility [2][12][13] 12. The next-generation chip is expected to launch in mid-2026, utilizing advanced technology and targeting the high-end market [2][14] 13. Among the three customer categories (A, B, C), the internet customer segment is currently experiencing the fastest growth, prompting significant resource investment for product optimization [2][14] 14. Yi Zhi Electronics plans to continue promoting AI integrated machines while not ruling out the possibility of standalone chip sales [2][15] 15. Following the change in control, the company will increase investments in the chip industry, particularly in Yi Zhi Electronics, and will comprehensively arrange capital, talent, and strategic direction towards AI chips as a key development focus [2][16] Additional Important Information - The strategic investment in Yi Zhi Electronics reflects He Sheng New Material's commitment to transforming its business model and adapting to the evolving technology landscape [2][3][10] - The collaboration with major internet companies and telecom operators indicates a strong market presence and potential for future growth in the AI chip sector [2][4][15]

国内 AI 芯片产业近况 20251109 摘要 国内 NPU 市场主要参与者包括华为升腾、寒武纪、百度昆仑芯和燧原科 技，各家产品在算力、显存和目标市场方面存在差异，华为升腾在出货 量上领先，但面临软件生态兼容性挑战。 国内 GPU 市场中，摩尔线程定位全功能 GPU，但出货量相对较小，面 临显存技术差距；沐曦科技的 C500 系列性能接近 NVIDIA A100，并兼 容 DCO 海光架构，市场表现良好。 百度昆仑芯 P800 采用三星 10 纳米工艺，算力超越 A100，并通过兼容 主流 AI 框架扩展软件生态，主要应用于算力中心、电力、运营商和金融 等行业。 阿里云平头哥量产 APG 架构 GP GPU 芯片，内部使用量大，并对外销 售整机，对标 H20，但不同版本算力规格差异较大。 互联网客户是 AI 芯片市场的重要需求方，但各家公司倾向于采购自家或 投资企业的芯片，寒武纪是目前唯一批量供应字节跳动的独立厂商。 国内 AI 芯片产能面临挑战，7 纳米和 12 纳米工艺产能不足以满足市场 需求，需要通过特殊渠道或海外供应弥补缺口，国产替代空间巨大。 华为在高密度计算卡方面取得技术突破，单机柜可支持 6 ...

Investment Rating - The investment rating for Advanced Micro Devices (AMD) is maintained as "Buy" with a target price of $280.00 [2][9][13] Core Views - AMD's Q3 performance exceeded expectations, with revenue of $9.246 billion, a year-on-year increase of 36%, and non-GAAP EPS of $1.20, up 30% year-on-year. However, the stock fell 4% post-earnings due to concerns over margin guidance and market sentiment [6][10] - The data center business led revenue growth, with Q3 data center revenue at $4.341 billion, a 22% year-on-year increase, driven by increased market share in EPYC server CPUs [7][10] - AMD's management anticipates significant AI-related revenue, projecting hundreds of billions in AI orders for 2026 and beyond, supported by partnerships with major companies like OpenAI and Oracle [8][9] Financial Performance - AMD's revenue projections for 2024 to 2027 are as follows: - 2024: $25.785 billion - 2025E: $34.961 billion - 2026E: $53.434 billion - 2027E: $69.343 billion - Non-GAAP net profit is expected to grow significantly, with projections of $1.641 billion in 2024, $3.758 billion in 2025, and $8.695 billion in 2026 [5][34] Market Position - AMD's x86 server CPU market share increased to 27.3% in Q2 2025, with sales revenue market share rising to 41.0%. The desktop CPU market share also improved to 32.2% [7][10] - The gaming segment saw a remarkable revenue increase of 181% year-on-year, driven by strong demand for the Radeon RX 9000 series [7][10] Valuation Metrics - The adjusted PE ratio for AMD is projected to decrease from 75.52 in 2025 to 26.27 in 2027, indicating a potential for improved valuation as earnings grow [5][34] - The target price of $280 corresponds to an 8.5x price-to-sales ratio for 2026 estimates, suggesting a favorable valuation compared to competitors [9][13]

Investment Rating - The report maintains a "Recommended" investment rating for the semiconductor and semiconductor equipment industry [5] Core Insights - The overseas AI chip index increased by 1.58% this week, with AMD rising by 8.5% and Marvell declining by 4.3% [1] - The domestic AI chip index surged by 12.8%, with all constituent stocks showing gains, particularly Cambricon, which rose over 20% [1] - Intel's Q3 2025 revenue reached $13.65 billion, a 3% year-on-year increase, with a net profit of $4.1 billion, marking a return to profitability despite a $2.3 billion loss in its wafer foundry business [3] - The global smartphone market saw a 2% year-on-year increase in shipments in the first half of 2025, with ODM-designed smartphones accounting for 43% of total shipments, the highest since 2019 [2][27] Market Indices Summary - The overseas chip index rose by 1.58% this week, while the domestic A-share chip index increased by 12.8% [10] - The Nvidia mapping index increased by 12.7%, with Shenghong Technology leading with a 19.1% rise [10] - The storage chip index saw a 14.4% increase, with Shannong Chip and Purun shares rising by 26.9% [15] - The power semiconductor index rose by 2.4%, while the A-share Apple index increased by 12.1% [16] Industry Data Summary - In Q3 2025, China's smartphone shipments fell to 66.6 million units, a 7.7% quarter-on-quarter decline, but are expected to rebound to 76.9 million units in Q4, a 15.4% increase [25][26] - The global smartphone ODM market is dominated by companies like Luxshare Precision, which has strengthened its position through the integration of Wentech's business [27] Major Events Summary - Intel's Q3 2025 report showed a significant recovery, with a notable narrowing of losses in its wafer foundry segment [3][31] - Longxin Storage has provided customers with samples of HBM3, preparing for mass production in 2026 [31] - Samsung's new generation 1c DRAM is nearing an 80% yield target, crucial for HBM4 production [33]

Core Viewpoint - The article discusses the impact of U.S. export controls on NVIDIA's operations in China, highlighting the significant loss of market share and potential revenue due to legislative changes and restrictions on AI chip sales [1][2]. Group 1: Legislative Impact - The U.S. Congress is pushing for legislation that requires chip manufacturers like AMD and NVIDIA to prioritize domestic supply for AI chip products [1]. - NVIDIA's CEO, Jensen Huang, stated that due to U.S. export controls, the company has completely exited the Chinese market, with its market share dropping from 95% to 0% [1]. Group 2: Financial Consequences - Following the U.S. export controls initiated in October 2022, NVIDIA faced ongoing challenges in selling high-end AI chips in China [1]. - The introduction of compliant AI chips for China, such as A800, H800, and H20, was not sufficient to mitigate losses, as new regulations in April 2025 forced the discontinuation of the H20 chip, resulting in approximately $4.5 billion in inventory losses and $8 billion in potential revenue losses [1]. Group 3: Future Outlook - Despite the challenges, NVIDIA remains hopeful for a policy change and is actively communicating with the U.S. government regarding its operations in China [2]. - Huang emphasized that the U.S. has lost access to one of the largest markets globally, suggesting that policies aimed at China could also harm U.S. interests [2]. - He noted that China possesses about 50% of the world's AI researchers and has a strong focus on AI development, indicating the competitive landscape [2].

Summary of Huawei's Full Connection Conference Industry and Company Overview - The conference focused on Huawei's advancements in AI infrastructure, particularly through the launch of the Lingxi Interactive Interconnection Protocol and three major super node products: Atlas 950, Atlas 960, and TaiShan 950 [1][2][3] Key Points and Arguments AI Infrastructure Developments - Huawei aims to build a comprehensive computing foundation to meet market demands for super nodes and consulting computing solutions, indicating a significant leap in AI computing capabilities [1][2] - The Atlas 950 and 960 super nodes are set to launch in Q4 2026 and Q4 2027, respectively, with a notable increase in computing power and interconnect bandwidth reaching up to 34PB per second [1][4] AI Chip Roadmap - The Ascend 950PR/G7 chip is scheduled for release in 2026, with plans for the Ascend 970 chip in 2028, showcasing Huawei's commitment to technological independence in AI chip development [1][5][8] - The Ascend 950PR chip will focus on pre-training tasks, while the Ascend 950G7 will support more complex operations, indicating a strategic shift in chip capabilities [5][8] Ecosystem Expansion - Huawei is opening its super node technology, including the Lingxi protocol and reference architecture, to foster collaboration with ecosystem partners, aiming to reshape the AI infrastructure market [1][7] - The launch of the HarmonyOS 5 and the investment of 1 billion in the Tian Gong plan to support the Harmony AI ecosystem are expected to attract more developers and enhance AI application innovation [3][11][13] Cybersecurity Solutions - The introduction of the Xinghe AI cybersecurity solution aims to unify network and security management, addressing new threats faced by branches, campuses, and data centers [1][10] Additional Important Content - The Atlas 950 super node will consist of 160 cabinets, achieving 800 million FLOPS (FB8) and 1.6 billion FLOPS (FB4), while the Atlas 960 will have 220 cabinets with 3.4 billion FLOPS (LLP8) and 6 billion FLOPS (LLB4) [4] - HarmonyOS 5 has been integrated into over 17 million devices, with 33,000 applications and services available, indicating a growing ecosystem [12] - The AI capabilities of the HarmonyOS, particularly through the voice assistant Xiaoyi, are being positioned as a central feature in various applications, enhancing user interaction and device connectivity [11][12]

Key Points Summary of Lithography Equipment Industry Research Industry Overview - The global lithography equipment market is expected to reach $31 billion, with critical importance placed on lithography technology performance, market size, and economic value [1][2] - Lithography machines are categorized into mask lithography, which is the most common and highly focused type [1][3] Core Technology Insights - The optical system is a key factor determining lithography machine performance, with resolution closely related to process nodes [1][4] - Resolution improvement can be achieved through adjustments in process factors, wavelength, and numerical aperture (NA), with significant advancements from DUV to EUV technology [1][4] - Multi-exposure techniques can achieve lower process nodes without changing resolution, significantly impacting transistor performance and yield [1][5] DUV vs. EUV Technology - DUV (Deep Ultraviolet) uses wavelengths of 248 nm or 193 nm, while EUV (Extreme Ultraviolet) operates at 13.5 nm, providing higher resolution [1][6][8] - EUV technology requires a reflective optical system due to the absorption characteristics of its short wavelength [1][8] Challenges in China - China faces significant challenges in DUV and EUV technology, with existing limitations hindering the domestic semiconductor industry's development [1][7] - The need for breakthroughs in technology is critical for achieving self-sufficiency in semiconductor manufacturing [1][7] Market Dynamics - The lithography equipment market is dominated by ASML, Nikon, and Canon, with ASML holding a monopoly in the high-end market [1][9] - In 2023, ASML sold 449 lithography machines, including 53 EUV devices, while Nikon and Canon focused on DUV and mid-to-low-end markets, respectively [1][9] Domestic Industry Progress - The domestic semiconductor supply chain has made significant progress towards self-sufficiency, with companies like Shanghai Micro Electronics and others achieving breakthroughs [1][12] - The demand for AI chips is driving the expansion of advanced process requirements, presenting substantial investment potential in domestic alternatives [1][12][13] Investment Recommendations - Investing in domestic alternatives and related companies is seen as having considerable potential due to the ongoing expansion of the global semiconductor industry driven by AI chip demand [1][13] - The long-term outlook for the global lithography equipment market is positive, with a focus on key domestic companies [1][14] Risks to Consider - Potential risks include slower-than-expected domestic technology development, increased overseas sanctions, and lower-than-expected downstream demand, which could adversely affect the lithography equipment market [1][14] Key Performance Indicators - Advanced lithography machines are evaluated based on three core indicators: optical resolution, mechanical overlay accuracy, and production capacity [1][15] Conclusion - The lithography equipment industry is critical to semiconductor manufacturing, with significant opportunities for investment in domestic alternatives and advancements in technology [1][13][14]

Investment Rating - The investment rating for the company is "Outperform the Market" [6][49]. Core Views - The company achieved a revenue of 253 million yuan in H1 2025, representing a year-on-year growth of 40.4%. However, it reported a net loss of 762 million yuan, primarily due to fluctuations in the fair value of financial instruments issued to investors [1][7][21]. - The company is accelerating the mass production of its A1000 and C1200 chips, which are being integrated into various new vehicle models, enhancing its market presence in both domestic and international markets [2][22][30]. - The company is actively expanding its commercialization efforts in robotics, unmanned logistics vehicles, and intelligent imaging solutions, aiming to become a leader in the AI chip sector [3][36][48]. Financial Performance - In H1 2025, the company's gross margin was 24.79%, down 25.21 percentage points year-on-year, with a net margin of -301.47%, a decline of 914.76 percentage points year-on-year [2][15]. - The revenue from autonomous driving products and solutions was 237 million yuan, up 41.5% year-on-year, driven by increased sales of advanced driver-assistance systems [10][21]. - The company expects revenues of 810 million, 1.27 billion, and 2 billion yuan for 2025, 2026, and 2027 respectively, with projected net profits of -976 million, -678 million, and 740 million yuan [4][49]. Business Segments - The autonomous driving segment is seeing significant growth, with a focus on enhancing market penetration in commercial vehicles and expanding customer base [10][21]. - The intelligent imaging solutions segment generated 16 million yuan in revenue, reflecting a year-on-year increase of 24.8%, attributed to gaining market recognition [10][21]. - The company is also developing a range of AI solutions for robotics and logistics, leveraging its proprietary chips to enhance functionality and performance [36][48]. Market Position and Strategy - The company is positioned as a leading domestic supplier of intelligent automotive computing chips, benefiting from the accelerating penetration of smart driving technologies [49]. - The strategy includes deepening collaborations with major automotive manufacturers and expanding into overseas markets, which is expected to enhance revenue growth [21][49]. - The company plans to acquire high-performance, low-power AI chip firms to strengthen its product offerings and market position in the AI chip sector [48].