Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 83 CNY per share and an upside potential corresponding to a price of 89 CNY per share for 2026 [2][8][4]. Core Views - The company reported a revenue of 1.819 billion CNY for H1 2025, representing a year-over-year increase of 15.37%, and a net profit of 201 million CNY, up 12.42% YoY. The gross margin and net margin were 50.16% and 10.65%, respectively [1][2]. - The overall industry is in an upward cycle, with the global consumer electronics market continuing to show positive trends, supported by domestic consumption incentives. However, competition remains fierce, leading to a general decline in prices [1][2]. - The company is expected to achieve over 20% revenue growth in 2025, with projections of net profits reaching 535 million CNY in 2025 and 684 million CNY in 2026, corresponding to P/E ratios of 89x and 70x, respectively [2][3]. Financial Data and Valuation - For 2025, the company is projected to have a revenue of 4.031 billion CNY, with a growth rate of 20.4%. The net profit is expected to be 535 million CNY, reflecting a growth rate of 7% [3]. - The earnings per share (EPS) for 2025 is estimated at 0.87 CNY, with a P/E ratio of 89.41 [3][4]. - The report anticipates that the company's gross margin will stabilize around 50% as the industry recovers, with significant contributions from the industrial and automotive sectors [10][11].

Market Overview - The overseas AI chip index decreased by 1.44% this week, with Marvell down 13.88%, AMD down 3.06%, and Nvidia down 2.14%. MPS and TSMC experienced declines of less than 1% [1][2] - The domestic AI chip index increased by 11.3%, with companies like Rockchip, Loongson Technology, and Cambricon rising over 20%. Tongfu Microelectronics rose by 9.46%, SMIC by 8.06%, and GigaDevice by 5.37%. Aojie Technology saw a decline of 7.53% [1][2] - The Nvidia mapping index rose by 18.9%, with Changxin Technology up 39.07% and Megmeet up 29.09%. Other companies like Huadian Technology, Invec, Shenghong Technology, and Jianghai Technology also saw increases of over 20%, while Jingwang Electronics and Industrial Fulian rose around 17% [2] Industry Data - The expected compound annual growth rate (CAGR) for the semiconductor industry from 2024 to 2030 is 12.8%, with smartwatches showing competitive advantages in health data monitoring due to screen and sensor capabilities [3] - In Q2 2025, the DRAM revenues for SK Hynix, Samsung Electronics, and Micron are projected to be $12.2 billion, $9.6 billion, and $7.1 billion respectively, with SK Hynix expected to surpass Samsung in revenue starting Q4 2024 [3] - The European smartphone market is projected to see a 9% year-on-year decline in Q2 2025, with Samsung, Apple, and Xiaomi experiencing declines of 10%, 4%, and 4% respectively [3] Major Events - The Ministry of Industry and Information Technology issued guidelines aiming for over 10 million satellite communication users by 2030, promoting large-scale applications of mobile direct satellite services [4] - Tesla's humanoid robot, Optimus, is being trained using a pure vision approach, consistent with its autonomous driving technology strategy [4] - Horizon's revenue for the first half of 2025 reached 1.567 billion yuan, a year-on-year increase of 67.6%, with market shares for ADAS and autonomous driving solutions at 45.8% and 32.4% respectively [5]

Investment Rating - The report maintains a "Recommended" investment rating for the semiconductor and semiconductor equipment industry [5] Core Insights - The semiconductor industry is experiencing fluctuations in stock performance, with overseas AI chip indices declining by 1.44% while domestic AI chip indices increased by 11.3% during the week of August 25 to August 31, 2025 [1][10] - Significant growth is anticipated in the global smart medical market, with a projected CAGR of 12.8% from 2024 to 2030, driven by advancements in wearable technology such as smartwatches [2][23] - The DRAM revenue for major players in Q2 2025 is reported as follows: SK Hynix at $12.2 billion, Samsung at $9.6 billion, and Micron at $7.1 billion, with SK Hynix expected to maintain its lead in DRAM revenue [2][24] Market Indices - The overseas AI chip index saw a decline of 1.44% this week, with notable drops from Marvell (13.88%) and AMD (3.06%), while domestic AI chip index rose by 11.3% [1][10] - The server ODM index decreased by 0.4%, with Quanta experiencing a significant drop of 6.13% [1][10] - The storage chip index increased by 4.6%, led by Dongxin's 28.47% rise [1][10] - The power semiconductor index rose by 5.5%, indicating positive momentum in this segment [1][10] Major Events - The Ministry of Industry and Information Technology in China has issued guidelines aiming for over 10 million satellite communication users by 2030, promoting the large-scale application of mobile direct satellite services [3][37] - Tesla's humanoid robot, Optimus, is being trained using a pure vision approach, aligning with its autonomous driving technology strategy [3][39] - Horizon's revenue for the first half of 2025 reached 1.567 billion yuan, marking a 67.6% year-on-year increase, with significant market share in ADAS and autonomous driving solutions [3][29]

Market Performance - The ChiNext Index rose by 2.29%, the Shenzhen Component Index increased by 1%, and the Shanghai Composite Index gained 0.46%, with over 3,200 stocks in the three markets showing gains and a total trading volume exceeding 2.78 trillion yuan [1] - Major A-share indices have broken through key resistance levels since August 2025, with the Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index all surpassing their October 2024 highs [1] Index Performance in August - The major indices' performance in August showed significant gains, with the STAR 50 Index up by 28.00%, the ChiNext Index up by 24.13%, and the Shenzhen Component Index up by 15.32% [2] - The Shanghai Composite Index recorded a trading volume of 20.07 trillion yuan with a rise of 7.97% [2] Concept Index Performance - In August, the CPO Index (光模块) led the gains with an increase of 46.66%, followed by the Stock Trading Software Index at 41.12% and the Optical Communication Index at 37.02% [3] - Other notable indices included the Server Index (34.41%) and the Consumer Electronics OEM Index (33.28%) [3] Notable Stocks - Stocks such as Geberit and Kaipu Cloud saw significant increases, with Geberit achieving a rise of 155.37% in August [4] September Stock Recommendations - Fourteen brokerage firms have released their "golden stocks" for September, with notable mentions including China Gold International and Shandong Gold [5] - Stocks like ZTE Corporation and SMIC were recommended three times, while New Yisheng saw an 88.26% increase in its stock price last month [6][7] Focused Sectors for September - Brokerages are focusing on sectors such as technology growth (AI, semiconductors, optical modules), high-end manufacturing (military, new energy, engineering machinery), and consumer sectors (liquor) [8] - Financial sectors including brokerage firms, insurance, and financial derivatives are also highlighted for potential investment [8] Brokerage Insights for September - Citic Securities emphasizes resources, innovative drugs, consumer electronics, chemicals, gaming, and military sectors as key areas of focus [9] - Guotai Junan Securities predicts that the market will continue to rise, with a focus on mid-cap stocks and low-position blue-chip stocks [9] - Huatai Securities suggests that risk appetite is likely to improve, recommending investments in AI, pharmaceuticals, and military sectors [9]

1. Report Industry Investment Rating There is no information provided in the report regarding the industry investment rating. 2. Core Viewpoints of the Report The report presents the top ten convertible bonds for September 2025, including detailed information on each bond such as credit rating, closing price at the end of August, conversion premium rate, and the financial and business conditions of the underlying companies, as well as their key attractions [13][23][35]. 3. Summary by Company 3.1 Zhongte Convertible Bond - **Bond Information**: AAA rating, August closing price of 114.493 yuan, conversion premium rate of 96.64%, and a positive stock PE - TTM of 12.68 [6][13]. - **Company Overview**: A global leader in specialized special - steel materials manufacturing, with a production capacity of about 20 million tons of special - steel materials per year. It has multiple production and raw material bases, forming a strategic layout along the coast and rivers [13]. - **Financial Data**: In 2024, its operating income was 109.203 billion yuan (YoY - 4.22%), net profit attributable to the parent was 5.126 billion yuan (YoY - 10.41%). In the first half of 2025, operating income was 54.715 billion yuan (YoY - 4.02%), and net profit attributable to the parent was 2.798 billion yuan (YoY + 2.67%) [13]. - **Company Highlights**: It is one of the world's most comprehensive special - steel enterprises in terms of variety and specifications, with leading market shares in core products. It has a complete industrial chain and strong cost - control capabilities. It also seeks external expansion opportunities [14]. 3.2 Shanlu Convertible Bond - **Bond Information**: AAA rating, August closing price of 117.2 yuan, conversion premium rate of 48.74%, and a positive stock PE - TTM of 4.02 [6][23]. - **Company Overview**: Mainly engaged in road and bridge engineering construction and maintenance, and is expanding into other fields. It has a complete business and management system [23]. - **Financial Data**: In 2024, its operating income was 71.348 billion yuan (YoY - 2.3%), net profit attributable to the parent was 2.322 billion yuan (YoY + 1.47%). In the first half of 2025, operating income was 28.575 billion yuan (YoY + 0.26%), and net profit attributable to the parent was 1.029 billion yuan (YoY + 0.89%) [23]. - **Company Highlights**: Controlled by the Shandong Provincial SASAC, it has the potential for improvement in its balance sheet, liquidity, and order volume. It is expected to benefit from infrastructure construction in Shandong and the Belt and Road Initiative [24]. 3.3 Hebang Convertible Bond - **Bond Information**: AA rating, August closing price of 121.6 yuan, conversion premium rate of 27.33%, and a positive stock PE - TTM of - 154.7 [6][35]. - **Company Overview**: It has advantages in salt mines, phosphate mines, and natural gas supply. Its business has expanded from single - product operations to multiple sectors including chemicals, agriculture, and photovoltaics [35]. - **Financial Data**: In 2024, its operating income was 8.547 billion yuan (YoY - 3.13%), net profit attributable to the parent was 0.031 billion yuan (YoY - 97.55%). In the first half of 2025, operating income was 3.921 billion yuan (YoY - 19.13%), and net profit attributable to the parent was 0.052 billion yuan (YoY - 73.07%) [35]. - **Company Highlights**: Its phosphate mines and salt mines contribute to profits, and its liquid methionine production is a major profit - contributor [36]. 3.4 Aima Convertible Bond - **Bond Information**: AA rating, August closing price of 127.164 yuan, conversion premium rate of 31.95%, and a positive stock PE - TTM of 14.18 [6][46]. - **Company Overview**: A leading enterprise in the electric two - wheeler industry, producing and selling various electric two - wheelers through dealers [46]. - **Financial Data**: In 2024, its operating income was 21.606 billion yuan (YoY + 2.71%), net profit attributable to the parent was 1.988 billion yuan (YoY + 5.68%). In the first half of 2025, operating income was 13.031 billion yuan (YoY + 23.04%), and net profit attributable to the parent was 1.213 billion yuan (YoY + 27.56%) [46]. - **Company Highlights**: It may benefit from government subsidies for trade - ins, the implementation of new national standards, and has potential for improving gross margins [47]. 3.5 Xingye Convertible Bond - **Bond Information**: AAA rating, August closing price of 124.698 yuan, conversion premium rate of 17.91%, and a positive stock PE - TTM of 6.14 [6][55]. - **Company Overview**: One of the first - established joint - stock commercial banks, evolving into a modern financial service group [55]. - **Financial Data**: In 2024, its operating income was 212.226 billion yuan (YoY + 0.66%), net profit attributable to the parent was 77.205 billion yuan (YoY + 0.12%). In the first half of 2025, operating income was 110.458 billion yuan (YoY - 2.29%), and net profit attributable to the parent was 43.141 billion yuan (YoY + 0.21%) [55]. - **Company Highlights**: It has stable asset quality and scale growth, with a large number of corporate and retail customers [56]. 3.6 Wentai Convertible Bond - **Bond Information**: AA - rating, August closing price of 123.15 yuan, conversion premium rate of 23.63%, and a positive stock PE - TTM of - 19.91 [6][67]. - **Company Overview**: A global leader in semiconductor R & D and manufacturing, adopting the IDM model [67]. - **Financial Data**: In 2024, its operating income was 73.598 billion yuan (YoY + 20.23%), net profit attributable to the parent was - 2.833 billion yuan (YoY - 339.83%). In the first half of 2025, operating income was 25.341 billion yuan (YoY - 24.56%), and net profit attributable to the parent was 0.474 billion yuan (YoY + 237.36%) [67]. - **Company Highlights**: After divesting some subsidiaries, it focuses on the semiconductor business, which has shown growth. Its automotive and consumer electronics businesses also have development potential [68]. 3.7 Chongqing Bank Convertible Bond - **Bond Information**: AAA rating, August closing price of 123.688 yuan, conversion premium rate of 21.55%, and a positive stock PE - TTM of 6.47 [6][78]. - **Company Overview**: One of the earliest local joint - stock commercial banks in the upper reaches of the Yangtze River and Southwest China, with a wide range of business operations [78]. - **Financial Data**: In 2024, its operating income was 13.679 billion yuan (YoY + 3.54%), net profit attributable to the parent was 5.117 billion yuan (YoY + 3.8%). In the first half of 2025, operating income was 7.659 billion yuan (YoY + 7%), and net profit attributable to the parent was 3.19 billion yuan (YoY + 5.39%) [78]. - **Company Highlights**: It benefits from the national strategy of the Chengdu - Chongqing economic circle, has stable asset - scale growth, and actively adjusts its credit strategy [79]. 3.8 Tianye Convertible Bond - **Bond Information**: AA + rating, August closing price of 123.717 yuan, conversion premium rate of 84.35%, and a positive stock PE - TTM of 146.1 [6][90]. - **Company Overview**: A leading enterprise in the chlor - alkali chemical industry in Xinjiang, with an integrated circular economy industrial chain [90]. - **Financial Data**: In 2024, its operating income was 11.156 billion yuan (YoY - 2.7%), net profit attributable to the parent was 0.068 billion yuan (YoY + 108.83%). In the first half of 2025, operating income was 5.16 billion yuan (YoY - 0.98%), and net profit attributable to the parent was - 0.009 billion yuan (YoY - 228.22%) [90]. - **Company Highlights**: It has relatively stable caustic soda production costs and plans to increase dividend frequency, while its group is promoting two coal - mine projects [91]. 3.9 Huanxu Convertible Bond - **Bond Information**: AA + rating, August closing price of 127.8 yuan, conversion premium rate of 24.45%, and a positive stock PE - TTM of 27.85 [6][101]. - **Company Overview**: A global leader in electronic manufacturing design, providing value - added services to brand customers [101]. - **Financial Data**: In 2024, its operating income was 60.691 billion yuan (YoY - 0.17%), net profit attributable to the parent was 1.652 billion yuan (YoY - 15.16%). In the first half of 2025, operating income was 27.214 billion yuan (YoY - 0.63%), and net profit attributable to the parent was 0.638 billion yuan (YoY - 18.66%) [101]. - **Company Highlights**: It is a leading manufacturer of smart - wearable SiP modules and has strengthened its R & D and production capabilities in key fields through global expansion [102]. 3.10 Yushui Convertible Bond - **Bond Information**: AAA rating, August closing price of 124.714 yuan, conversion premium rate of 28.15%, and a positive stock PE - TTM of 27.4 [6][111]. - **Company Overview**: The largest integrated water supply and drainage enterprise in Chongqing, with a monopoly position in the local market [111]. - **Financial Data**: In 2024, its operating income was 6.999 billion yuan (YoY - 3.52%), net profit attributable to the parent was 0.785 billion yuan (YoY - 27.88%). In the first half of 2025, operating income was 3.519 billion yuan (YoY + 7.16%), and net profit attributable to the parent was 0.458 billion yuan (YoY + 10.06%) [111]. - **Company Highlights**: It has a high market share in Chongqing, is expanding its business externally, and has achieved cost control through intelligent applications [112].

Investment Rating - The report maintains a "Buy" rating for the company [6][7]. Core Views - The company is firmly investing in GPU research and development, aiming to enter the edge AI chip market. The growth of the domestic ecosystem and the increasing demand for computing power driven by AI technology are expected to accelerate the company's chip business growth [6][10]. - The company reported a significant decline in revenue and net profit for the first half of 2025, with revenue of 193 million yuan, down 44.78% year-on-year, and a net loss of 88 million yuan, down 356.51% year-on-year. The gross margin was 45.03%, a decrease of 7.9 percentage points [2][4]. Financial Performance Summary - In 2025H1, the company achieved revenue of 193 million yuan, a year-on-year decrease of 44.78%. The net profit attributable to the parent company was -88 million yuan, a decrease of 356.51%. The net profit after deducting non-recurring items was -96 million yuan, down 550.44%. The gross margin was 45.03%, down 7.9 percentage points [2][4]. - In Q2 2025, the company reported revenue of 91 million yuan, a year-on-year decrease of 62.42%, with a net profit of -33 million yuan, down 171.70%. The gross margin increased to 59.31%, up 10.8 percentage points [2][4]. Business Development Insights - The company's core business in graphics control is developing steadily, with a solid competitive landscape. The introduction of high-performance intelligent computing modules and products targeting AI training and inference is expected to drive growth in the chip business [6][10]. - The company is making a strategic investment of 220 million yuan in Chengheng Microelectronics to gain control over the company, which specializes in edge AI chip design and development [6][10].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 158 CNY per share for 2026, based on a projected PE ratio of 65x [3][11][13]. Core Views - The company's revenue for H1 2025 reached 4.15 billion CNY, a year-on-year increase of 15.0%, while net profit attributable to shareholders was 575 million CNY, up 11.31% year-on-year [1][7]. - The DRAM market is experiencing improved competitive dynamics, with major manufacturers gradually exiting niche DRAM markets, leading to tighter supply and rising prices since March [2][7]. - The company is optimizing its product structure, with an increased revenue share from DDR4 series products, enhancing profitability [2][8]. - The NOR Flash business is benefiting from demand in consumer electronics, computing, industrial, and automotive sectors, with expectations of price increases due to supply constraints [2][9]. - The MCU business has seen significant growth driven by government subsidies and downstream inventory demand, particularly in consumer electronics and network communication sectors [2][10]. Financial Data and Valuation - The company forecasts net profits of 1.45 billion CNY and 1.60 billion CNY for 2025 and 2026, respectively, with corresponding PE ratios of 72x and 65x [3][4]. - Revenue is expected to grow by 27.6% in 2025 and 26.4% in 2026, with net profit growth rates of 31.7% and 10.5% for the same years [4][11]. - The company's gross margin is projected to stabilize around 35%, with NOR Flash margins expected to remain at 45% [13].

Core Insights - The report highlights the release of DeepSeek-V3.1, which features a hybrid reasoning architecture, improved thinking efficiency, and enhanced agent capabilities, marking a significant advancement in domestic AI models [2][5][15] - Tesla has partnered with ByteDance's Volcano Engine to integrate AI models into its smart cockpit, utilizing the Doubao model for voice commands and DeepSeek for AI chat services, indicating a shift towards local AI solutions [25][26] - NVIDIA is set to launch a "New Brain" for humanoid robots, showcasing its commitment to advancing robotics and AI applications [27][29] Industry Trends - The report emphasizes the importance of AI applications and hardware, non-bank financial services, defense and military industries, and innovative pharmaceuticals as key sectors to watch for marginal improvements in August [30][31] - The introduction of "quasi-fiscal" tools, amounting to 500 billion yuan, aims to support emerging industries and infrastructure, reflecting a proactive approach to economic stimulus [5] - The global stock market showed a positive trend, with consumer discretionary and daily consumption sectors performing well, while public utilities lagged [32][33] Company Developments - DeepSeek-V3.1 has undergone significant upgrades, including a new API that supports function calling and integration with the Anthropic API ecosystem, enhancing its usability for developers [16][18][21] - The performance metrics of DeepSeek-V3.1 have shown substantial improvements in code repair and search capabilities compared to previous models, indicating a leap in technological advancement [19][20] - Tesla's integration of local AI models is a strategic move to comply with new regulations and enhance user experience in its vehicles, positioning itself competitively against local rivals [25][26]

Investment Rating - The report maintains a "Recommended" investment rating for the semiconductor industry, indicating that the industry index is expected to outperform the benchmark index by more than 10% [7]. Core Insights - The overseas AI chip index fell by 2.23% this week due to the announcement of upcoming semiconductor tariff policies by the U.S. government, leading to declines in major chip stocks such as AMD and Marvell [1][10]. - In contrast, the domestic AI chip index surged by 18.9% following the release of DeepSeek-V3.1, which is tailored for next-generation domestic chip architectures, benefiting leading domestic chip companies [1][10]. - The report highlights significant fluctuations in various semiconductor indices, with the storage chip index rising by 9.6% and the power semiconductor index increasing by 5.7% [1][15]. Market Indices Summary - The overseas AI chip index experienced a decline of 2.23%, with AMD down 5.5% and Marvell down 4.2% [1][10]. - The domestic AI chip index saw an increase of 18.9%, with notable gains from companies like 中芯国际 (10.1%) and 寒武纪 (34.6%) [1][10]. - The server ODM index fell by 5.3%, with Quanta being the only stock to rise by 15.2% [1][10]. - The storage chip index rose by 9.6%, with 兆易创新 increasing by 22.8% [1][15]. - The power semiconductor index increased by 5.7%, with 华润微 rising by 8.3% [1][15]. Industry Data Summary - Taiwan's top four foundries are expected to generate a combined revenue of $35.15 billion in Q3 2025, reflecting a 7.1% quarter-over-quarter growth, but projected to decline to $32.1 billion in Q4 2025, a decrease of 8.7% [2][25]. - The domestic XR consumer market saw sales of 261,000 units in the first half of 2025, a 9% increase quarter-over-quarter but a 21% year-over-year decline, with AR devices showing a 35% year-over-year growth [2][26]. - Global smart glasses shipments surged by 110% year-over-year in the first half of 2025, with Meta holding a 73% market share [2][28][31]. Major Events Summary - The U.S. government announced a $11 billion investment to acquire a 9.9% stake in Intel, becoming its largest shareholder, which includes funds from the CHIPS and Science Act [3][32]. - DeepSeek launched its new AI model, DeepSeek-V3.1, specifically designed for domestic chips, marking a significant step in China's AI industry [3][33]. - Vivo released its first mixed reality headset, Vision Exploration Edition, aimed at everyday use [3][37].

Group 1 - On August 20, a total of 145 stocks received buy ratings from brokerages, with 39 stocks announcing target prices [1] - Based on the highest target prices, Yuntianhua, Meihua Biological, and Naxinwei ranked highest in potential price increases, with expected increases of 53.88%, 48.92%, and 41.96% respectively [1] - Among the stocks with buy ratings, the Materials II, Semiconductors and Semiconductor Production Equipment, and Food, Beverage, and Tobacco sectors had the highest number of rated stocks, with 46, 13, and 12 stocks respectively [1] Group 2 - 138 stocks maintained their ratings, while 7 stocks received their first ratings [1] - Jibite, Beixin Building Materials, and Fuyao Glass received the most attention from multiple brokerages, with 6, 4, and 4 ratings respectively [1]