Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future stock performance [5][6]. Core Views - The company is expected to benefit significantly from the increasing penetration of DDR5 memory interfaces and the AI wave, with substantial growth potential in the domestic market for its CPU products [5]. - The forecast for Q2 2025 indicates a strong revenue growth of 15.5% quarter-on-quarter, with non-GAAP net profit reaching a historical high for a single quarter, aligning with expectations [2]. - The company has launched several high-performance AI capacity chips, which are expected to drive revenue growth and improve overall gross margins [4]. Financial Summary - **Revenue Projections**: The company anticipates revenues of 2,286 million CNY in 2023, growing to 10,150 million CNY by 2027, with a year-on-year growth rate of -37.8% in 2023, followed by significant increases of 59.2% in 2024 and 69.1% in 2025 [1]. - **Net Profit Projections**: The projected net profit for 2023 is 451 million CNY, increasing to 4,451 million CNY by 2027, with a year-on-year growth rate of -65.3% in 2023, followed by 213.1% in 2024 and 93.0% in 2025 [1]. - **Key Ratios**: The report highlights a return on equity (ROE) of 4.4% in 2023, expected to rise to 21.0% by 2027, indicating improving profitability [1]. Business Segments - **Interconnect Chips**: This segment is the largest, with Q1 2025 revenue of 11.39 billion CNY, representing 93.2% of total revenue, and is projected to grow by 16% in Q2 2025 [3]. - **High-Performance AI Capacity Chips**: Revenue from this segment is expected to increase by 18% quarter-on-quarter in Q2 2025, contributing significantly to the company's growth [4]. Market Position - The company is positioned as a leader in domestic memory interface chips, with a substantial market opportunity as local manufacturers currently hold a low market share [5].

Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Views - The company achieved a revenue of 3.639 billion yuan in 2024, representing a year-on-year increase of 59.20%, and a net profit attributable to shareholders of 1.412 billion yuan, up 213.10% year-on-year [2][6] - In Q4 2024, the company reported a revenue of 1.068 billion yuan, a year-on-year increase of 40.43% and a quarter-on-quarter increase of 17.90%, with a net profit of 434 million yuan, up 99.72% year-on-year and 12.67% quarter-on-quarter [2][6] - For Q1 2025, the company expects to achieve a revenue of 1.222 billion yuan, a year-on-year increase of 65.78%, and a net profit of 510 to 550 million yuan, representing a year-on-year increase of 128.28% to 146.19% [2][6] Summary by Sections Financial Performance - In 2024, the company generated a total revenue of 3.639 billion yuan, with a gross profit of 2.115 billion yuan, resulting in a gross margin of 58% [17] - The revenue from interconnect chips reached 3.349 billion yuan, a year-on-year increase of 53.31%, with a gross margin of 62.66% [12][17] - The company’s R&D expenses for 2024 were 763 million yuan, accounting for 20.98% of total revenue [12][17] Product Performance - The interconnect chip revenue reached a historical high of 972 million yuan in Q4 2024, with a year-on-year increase of 40.27% [12][17] - The company benefited from the increasing penetration of DDR5 and the launch of new products, leading to significant growth in high-performance chips, which saw an 800% increase in revenue [12][17] Future Outlook - The company is expected to continue its growth trajectory, with projected net profits of 2.470 billion yuan, 3.176 billion yuan, and 3.890 billion yuan for 2025, 2026, and 2027 respectively [12][17] - The company is positioned as a leading player in the data processing and interconnect chip market, with a strong focus on R&D and product expansion [12][17]