Core Viewpoint - The company has shown significant revenue growth in 1H25, driven by new product launches and industry recovery, despite reporting a net loss [1][2][3] Financial Performance - In 1H25, the company achieved revenue of 222 million yuan, a year-on-year increase of 43.41%, while the net profit attributable to shareholders was a loss of 104 million yuan, reducing losses by 4 million yuan compared to the previous year [1] - In Q2 2025, revenue reached 141 million yuan, reflecting a year-on-year growth of 71.39% and a quarter-on-quarter increase of 73.74% [1] - The gross margin improved to 43.98% in Q2 2025, with a quarter-on-quarter increase of 3.24 percentage points [1][2] Product Development - The company has successfully launched several new products, including 2.5G PHY chips, which generated revenue of 73 million yuan, a year-on-year increase of 88.34% [2] - The company plans to continue introducing new products in 2023 and 2024, contributing to a significant revenue increase from these new offerings [2] - The automotive-grade chip segment has seen rapid growth, with revenue from automotive PHY chips reaching 14 million yuan, a year-on-year increase of 215.48% [2] Market Outlook - For 2025, the company expects continued revenue growth driven by the demand for industrial-grade products and the launch of new products [3] - The company anticipates that revenue from 2.5G PHY chips will reach new highs, with plans to introduce single-port 10G PHY chip samples by the end of 2025 [3] Investment Recommendation - The target price is set at 140.50 yuan, maintaining a "buy" rating based on projected revenues of 562 million yuan, 830 million yuan, and 1.215 billion yuan for 2025, 2026, and 2027 respectively [4] - The company is valued at 20 times the 2025 price-to-sales ratio, reflecting its growth potential as a rare domestic PHY chip supplier [4]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 140.50 [4][6]. Core Views - The company achieved revenue of RMB 222 million in 1H25, representing a year-over-year increase of 43.41%, while the net profit attributable to the parent company was a loss of RMB 104 million, showing a reduction in losses [1][2]. - The growth in revenue is attributed to the recovery of the industry cycle, ongoing support from domestic policies, and the gradual ramp-up of several new products [1][2]. - The company is expected to continue its rapid growth in 2025, driven by the launch of new products and the increasing demand for automotive-grade chips [3][4]. Summary by Sections Financial Performance - In 2Q25, the company reported revenue of RMB 141 million, a year-over-year increase of 71.39% and a quarter-over-quarter increase of 73.74% [1]. - The gross margin improved to 43.98% in 2Q25, reflecting a quarter-over-quarter increase of 3.24 percentage points [1][2]. - The company’s inventory stood at RMB 137 million at the end of 2Q25, with inventory turnover days decreasing to 186 days [2]. Product Development - The company has successfully launched several new products, including 2.5G PHY chips and various switching chips, contributing significantly to revenue growth [2][3]. - The automotive-grade chips, including 100M and 1G PHY chips, have seen rapid growth, with revenues reaching RMB 14 million, a year-over-year increase of 215.48% [2]. - The company plans to introduce a single-port 10G PHY chip by the end of 2025 to expand into high-end application markets [3]. Market Outlook - The company is expected to maintain high revenue growth in 2025, with revenue forecasts of RMB 562 million, RMB 830 million, and RMB 1.215 billion for 2025, 2026, and 2027, respectively [4][10]. - The automotive sector's demand for intelligent and connected products is anticipated to drive the growth of automotive-grade products in the medium to long term [3].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 126.50 RMB [4][8]. Core Views - The company achieved a revenue of 396.23 million RMB in 2024, representing a year-over-year increase of 44.86%, but reported a net loss attributable to shareholders of 201.68 million RMB, a decrease of 34.36% year-over-year [2][4]. - The growth in revenue is attributed to the release of new products such as the 2.5G PHY and multi-port switch chips, alongside a recovery in demand from the industrial-grade market [2][3]. - The company is expected to continue its rapid growth in 2025, driven by various consumer stimulus policies and the ongoing recovery in the industrial-grade market [3][4]. Summary by Sections Financial Performance - In 2024, the company reported a total revenue of 396.23 million RMB, with a significant increase in industrial-grade revenue by 108.89% to 225 million RMB, and commercial-grade revenue up by 61.72% to 164 million RMB [2][6]. - The gross margin for Q1 2025 was 40.74%, slightly down from the previous year, primarily due to increased competition in the industrial-grade product market [2][3]. Product Development - The company is expanding its product lines, including the launch of a 24-port switch chip series and the introduction of automotive Ethernet switch chips, which are expected to contribute to revenue in 2025 [3][4]. - The 2.5G PHY chip is projected to maintain rapid growth, with the introduction of a four-port version expected to open up larger market opportunities [3][4]. Market Outlook - The report anticipates that the company's revenue will reach 562.10 million RMB in 2025, with continued growth expected in subsequent years [4][6]. - The company is positioned as a rare supplier of PHY chips in China, with a resilient demand in the industrial-grade market and potential revenue elasticity from new product launches [4][6].