Core Viewpoint - The company, Zhimin Da, has received approval from the China Securities Regulatory Commission for a private placement of shares, aimed at funding the development and industrialization of embedded computers for unmanned equipment and commercial aerospace projects, which will enhance its R&D and production capabilities in key national sectors [1][2] Group 1: Financial Performance - In the first three quarters of the year, the company achieved a revenue of 512 million yuan, representing a year-on-year increase of 145.16%, with a net profit attributable to shareholders of 81.99 million yuan, showing significant growth [1] - In the third quarter alone, the company reported a revenue of 217 million yuan, a remarkable year-on-year increase of 340.71%, and a net profit of 43.69 million yuan [1] Group 2: Order Growth and Market Expansion - As of the end of the third quarter, the company had an order backlog (including verbal orders) of 450 million yuan, with new orders significantly increasing compared to the same period last year [2] - The company is strengthening its traditional advantages while expanding into low-altitude economy and commercial satellite systems, with a notable increase in commercial aerospace project developments [2] Group 3: Investment and Future Prospects - The funds raised will primarily be directed towards technological innovation, accelerating new product development, and creating new business growth areas [2] - The implementation of the fundraising project is expected to enhance manufacturing efficiency and meet aerospace-grade product quality control requirements, thereby increasing overall production capacity [2] - A new factory and embedded computer expansion project is set to be operational by October 2024, aligning with the anticipated growth in revenue and order volume [2]

Core Viewpoint - The company, Zhimin Da, is focusing on high-reliability embedded computing solutions and has reported significant growth in revenue and profit for the first three quarters of 2025, driven by increased product orders and strategic expansion into emerging markets [2][3]. Group 1: Business Operations - Zhimin Da will not transfer its existing business to the new subsidiary, Chengdu Zhiwei Xintu Technology Co., Ltd., which has a registered capital of 10 million yuan and is 51% owned by Zhimin Da [1]. - The new subsidiary will focus on smart vision products for applications in transportation, security, and unmanned systems, as well as embodied intelligence products for robotics and similar devices [1]. Group 2: Financial Performance - For the first three quarters of 2025, Zhimin Da achieved revenue of 512 million yuan, a year-on-year increase of 145.16%, and a net profit of 81.99 million yuan, marking a turnaround from losses [2]. - The company’s stock price rose by 9.79% to 36.66 yuan per share following the release of its impressive financial results [2]. Group 3: Order and Production Insights - As of September 30, the company had an order backlog of 450 million yuan, with approximately 70 million yuan scheduled for delivery next year [2]. - The company expects fourth-quarter revenue to exceed that of the third quarter, with production capacity nearly fully utilized [2][3]. Group 4: Product Development and Market Trends - Zhimin Da is experiencing significant growth in its airborne and missile-borne product lines, with commercial aerospace and unmanned equipment sectors expected to grow rapidly [3][4]. - The company secured 152 new R&D projects in the first three quarters, with a notable increase in commercial aerospace projects compared to the previous year [4].

Core Viewpoint - The company, Zhimin Da (688636), reported significant growth in revenue and net profit for the third quarter of 2025, indicating a strong recovery and positive market demand for its products [1][2]. Financial Performance - For the first three quarters, the company achieved a revenue of 512 million yuan, a year-on-year increase of 145.16% - The net profit reached 81.9871 million yuan, marking a turnaround from a loss in the previous year - In the third quarter alone, revenue was 217 million yuan, up 340.71% year-on-year, with a net profit of 43.6891 million yuan compared to a loss of 10.8605 million yuan in the same period last year [1]. Product and Market Development - Zhimin Da focuses on providing customized embedded modules and solutions for key national sectors, with applications in high-end equipment such as aircraft, missiles, satellites, rockets, and unmanned systems - The company is committed to a technology-leading strategy, enhancing its technical capabilities, and exploring new technologies and fields [1][2]. Order Growth and R&D Projects - The company reported a significant increase in orders, with a total of 450 million yuan in hand orders (including verbal agreements) by the end of the reporting period - New orders for the year showed substantial growth compared to the previous year, particularly in airborne and missile-mounted products - The company secured 152 new R&D projects during the reporting period, with a notable increase in commercial aerospace projects [2]. New Ventures and Subsidiaries - Zhimin Da has established a new subsidiary, Chengdu Zhiwei Xintu Technology Co., Ltd. (referred to as "Zhiwei Xintu"), which received business approval on October 15 - The subsidiary will focus on artificial intelligence software development, general application systems, and smart robotics, among other areas [3][4]. Capital Raising Initiatives - The company has initiated a simplified procedure for issuing shares to specific investors, which has been accepted by the Shanghai Stock Exchange - The planned fundraising of 208 million yuan will be used for R&D and industrialization of embedded computers for unmanned equipment and commercial aerospace, as well as to supplement working capital [4].

Summary of Zhimingda Conference Call Company Overview - **Company Name**: Zhimingda - **Industry**: Military Embedded Computing - **Headquarters**: Chengdu, Sichuan Province, China - **Established**: 2022 Financial Performance - **2024 Revenue**: 438 million CNY, a decrease of 33.95% year-on-year [2][4] - **2025 H1 Revenue**: 295 million CNY, an increase of 84.83% year-on-year [2][4] - **Core Business**: Airborne business accounts for over 60% of revenue in both 2024 and 2025 H1 [2][5] - **Order Backlog**: As of mid-2025, the order backlog reached 608 million CNY, a year-on-year increase of 73.71% [2][6] Market Dynamics - **Military Embedded Computer Market**: Rapidly developing, with a strong demand for upgrades in China's military aircraft [2][7] - **Comparison with US**: China has approximately 3,300 active military aircraft, significantly lower than the US's 13,000 [7] - **Cost Structure**: The avionics system cost has increased, representing 30%-40% of advanced fighter aircraft costs, expanding the market for embedded computing [7][8] Business Segments - **Airborne Business**: Remains the core revenue source, with significant contributions from unmanned systems and commercial aerospace [2][4][5] - **Missile Guidance Systems**: Increased demand for precision-guided weapons is driving growth in the missile-borne embedded computing market [2][9] - **Satellite Sector**: The number of commercial satellite launches has reached new highs, increasing demand for onboard computers [2][10] Competitive Landscape - **Main Competitors**: Military research institutes and a few qualified enterprises [12] - **Competitive Advantages**: - Flexible production mechanisms and effective incentive measures [12] - Strong historical collaboration with clients, leading to high customer retention [12] Emerging Opportunities - **Unmanned Systems**: The demand for embedded computing in unmanned systems is expected to rise significantly due to modern warfare needs [2][11] - **Low-altitude Economy**: Development in this area is expected to boost demand for civilian products [11] Challenges - **Order Delays**: Orders were delayed in 2024 due to industry conditions, impacting delivery [2][6] - **Market Competition**: Facing competition from state-owned research institutes with less flexibility in production [12] Conclusion Zhimingda is positioned for recovery and growth, leveraging its core competencies in military embedded computing and expanding into new markets such as unmanned systems and commercial aerospace. The company’s strong order backlog and increasing revenue in 2025 indicate a positive outlook despite previous challenges.

Group 1: Fund Research - The report constructs an active cycle-themed fund pool, categorizing funds into balanced cycle funds and single-track cycle funds based on their allocation to cyclical industries [5][6][7] - Recommended funds include Dachen Industry Trend, HSBC Jintrust Small Cap, and Qianhai Kaiyuan Hong Kong-Shanghai Core Resources [5][7] - The report highlights that the selected balanced cycle funds focus on non-ferrous metals and basic chemicals, while single-track funds target specific sectors like gas, wind power, and coal [8] Group 2: Securities Industry Analysis - The report indicates that various funds are entering the market, with insurance companies increasing their stock allocation, and public offerings showing signs of recovery [10][11] - It predicts a 48% profit growth for the securities industry in 2025, with specific recommendations for undervalued leading brokers and those with fundamental changes [11] - The report notes that the A-share liquidity index's rapid increase correlates with the median rise of brokerage stocks, suggesting further upside potential for these stocks [10][11] Group 3: Defense Industry Analysis - The report covers Zhimingda, a leading company in the embedded computing industry, forecasting net profits of 103 million, 152 million, and 201 million yuan for 2025-2027 [13][14] - It emphasizes the company's strategic positioning in the midstream market, benefiting from the increasing demand for embedded computers in military applications [14] - The report assigns a target price of 40.83 yuan for 2026, based on a 45x valuation, and gives a "buy" rating [13] Group 4: Macro Analysis - The report discusses the recent market pullback, suggesting it is a short-term adjustment rather than a significant downturn, similar to patterns observed in previous bull markets [16][17] - It highlights that the current market sentiment is influenced by profit-taking and structural adjustments, with no major negative macroeconomic changes [16][17] - The report anticipates a continuation of liquidity-driven market trends, with a shift towards a slow bull market supported by economic recovery and inflation expectations [18]

Core Viewpoint - The company has implemented a "Quality Improvement and Efficiency Enhancement" action plan for 2025 to enhance investment value and shareholder returns while maintaining compliance and effective governance [1]. Group 1: Business Performance - The company focused on its core business, achieving a net profit attributable to shareholders of 35.68 million yuan, a turnaround from losses, with an increase of 36.96 million yuan compared to the same period last year [1]. - The company experienced a significant increase in new orders, particularly in airborne and missile-mounted products, driven by rising customer demand [2]. Group 2: Financial Management - The company has seen a rapid increase in accounts receivable due to longer payment settlement times, but most accounts are within one year and from reputable clients, mitigating risks [2]. - The proportion of accounts receivable to current assets decreased from 95.6% in the first half of 2024 to 58.1% in the first half of 2025, and the accounts receivable turnover days improved from 956 days to 581 days [2]. Group 3: Technological Innovation - The company has developed a comprehensive research and production control system, focusing on embedded computing technology, and has accumulated over 20 years of industry experience [3]. - The company holds 37 patents and 176 software copyrights, and has been recognized as a national-level "Little Giant" enterprise, indicating strong R&D capabilities [3]. Group 4: Investor Relations and Governance - The company has established a transparent dividend policy, distributing a cash dividend of 0.142 yuan per share and increasing its total share capital through a capital reserve transfer [4]. - The company has enhanced its governance structure by eliminating the supervisory board and transferring its responsibilities to the audit committee of the board [5]. - The company organized 74 investor meetings in the first half of 2025, an increase from 66 in the same period of 2024, to improve communication with shareholders [6][7].

Core Viewpoint - Chengdu Zhimianda Electronics Co., Ltd. has experienced a decline of 9.33% over five consecutive trading days, indicating potential market concerns regarding the company's performance and outlook [1]. Company Overview - Chengdu Zhimianda Electronics is a leading enterprise in the domestic embedded computer industry, providing customized solutions, products, and services based on customer needs [1]. Shareholder Information - Two funds under GF Fund Management have entered the top ten shareholders of Zhimianda, with GF Technology Innovation Mixed A maintaining its position and GF Small and Medium Cap Selected Mixed A increasing its holdings [1]. - GF Technology Innovation Mixed A has achieved a year-to-date return of 19.28%, ranking 562 out of 4,561 in its category, while GF Small and Medium Cap Selected Mixed A has a year-to-date return of 19.15%, ranking 577 out of 4,561 [1]. Fund Manager Profiles - The fund managers for GF Technology Innovation Mixed A and GF Small and Medium Cap Selected Mixed A are Wu Yuanyi and Chen Yunzong, respectively [4][6]. - Wu Yuanyi has a background in finance and has held various positions in research and fund management since 2020 [5]. - Chen Yunzong has been with GF Fund Management since 2019 and has experience in industry research and fund management [6]. Fund Management Company - GF Fund Management was established in August 2003, with a significant shareholding structure where GF Securities holds 54.53% [6].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 60.00, compared to the last closing price of 39.87 [1]. Core Insights - The company, Zhimin Da (688636), is a leading player in the domestic embedded computer industry, focusing on key national sectors and providing customized solutions, products, and services [4][11]. - The demand for embedded computers in key sectors is expected to grow significantly due to the acceleration of defense information construction and the increasing intelligence of equipment [5][51]. - The company is well-positioned to benefit from the recovery of orders in key sectors, with expectations of improved financial performance in the coming years [5][24]. Summary by Sections 1. Company Overview - Zhimin Da has over 20 years of experience in embedded technology, ensuring its leading position in the industry through core technical advantages [12][13]. - The company has a stable revenue growth rate, with a compound annual growth rate of 13.85% from 2019 to 2024, and a gross margin maintained above 40% [24]. 2. Market Demand - The embedded computer market is experiencing significant growth driven by the demand for intelligent equipment in various industries, including communications and healthcare [4][42]. - The global market for embedded systems in key sectors is projected to grow from USD 101.9 billion in 2020 to USD 238 billion by 2027, with a CAGR of 12.9% [44]. 3. Product Applications - The company’s products are widely used in key sectors, including airborne and missile systems, with a focus on enhancing capabilities in these areas [5][61]. - The company has expanded its product offerings to include applications in satellite and drone markets, which are expected to contribute to future growth [5][28]. 4. Financial Projections - The company’s net profit is projected to be CNY 0.19 million, CNY 1.13 million, and CNY 1.54 million for 2024, 2025, and 2026 respectively, with corresponding EPS of CNY 0.17, CNY 1.01, and CNY 1.37 [5][7]. - The expected PE ratios for the same periods are 233, 40, and 29, indicating a potential for significant valuation improvement as the market recovers [5].