Core Insights - The company reported a revenue of 3.047 billion yuan for the first half of 2025, representing a year-on-year growth of 6.07% and a net profit of 653 million yuan, up 4.39% year-on-year [1] - Total assets reached 17.696 billion yuan, an increase of 2.17%, while the net assets attributable to shareholders rose to 12.878 billion yuan, up 3.90% [1] - The company is a leading integrated circuit manufacturer in China, focusing on special integrated circuits and smart security chips, while also expanding into quartz crystal frequency devices [1] Business Performance - The special integrated circuit segment expanded into new application scenarios such as commercial aerospace, with successful production of new high-performance FPGA and system-level chips [2] - The smart security chip business has launched multiple eSIM solutions globally, and the first pilot of a bank card using the E450R security chip has been initiated [2] - The automotive safety chip solutions have been enhanced, with new products like the T97-415E chip being introduced and achieving significant shipment volumes [3] R&D and Innovation - The company maintained a strong focus on R&D, achieving 26 invention patents and 6 utility model patents during the reporting period [1] - New products in the analog sector, including high-performance RF clock and low-power Ethernet PHY, have shown leading technical specifications domestically, with increasing orders [2] - The company is committed to high-quality operations and enhancing core competitiveness by focusing on cutting-edge technologies and expanding into new fields [3]

Core Insights - The company reported a revenue of 3.047 billion yuan for the first half of 2025, representing a year-on-year growth of 6.07%, while the net profit attributable to shareholders was 692 million yuan, a decline of 6.18% [2] Group 1: Special Integrated Circuits - The company demonstrated strong technical capabilities and market competitiveness in the special integrated circuit sector, optimizing its R&D structure and significantly shortening development cycles [2] - The self-built packaging line was successfully put into production, achieving product quality at an industry-leading level [2] - The company maintained its leading position in FPGA and system-level chip products, with new high-performance products achieving mass delivery [2] - In special memory, the company retained its advantage as the most advanced and comprehensive in the domestic market, with new switch chip products being delivered in bulk [2] - Notably, breakthroughs were made in aerospace applications, with new FPGA and read-refresh chips being adopted by core users [2] Group 2: Intelligent Security Chips - The intelligent security chip business achieved new breakthroughs in product technology and market expansion, maintaining a leading position in the global SIM card chip market [3] - eSIM products were introduced to multiple leading smartphone manufacturers and achieved mass shipments [3] - In the financial IC card sector, the world's first open soft and hardware architecture security chip E450R was piloted in bank cards [3] - Significant progress was made in the automotive electronics sector, with automotive security chip solutions being mass-produced for several leading Tier 1 suppliers and OEMs, with annual shipments reaching millions [3] Group 3: Quartz Crystal Frequency Devices - The quartz crystal frequency device business showed steady growth, benefiting from the recovery of the consumer electronics market and rapid development in network communication and smart automotive sectors [3] - The company successfully developed new products such as the SMD2016 high-frequency differential crystal oscillator, enhancing market competitiveness [3] - Several products met the reliability standards of AEC-Q200/100 in automotive-grade products [3] - The company is actively laying out emerging market fields such as aerospace information, artificial intelligence, and low-altitude economy, with the construction of a production base for ultra-micro quartz crystal resonators progressing smoothly [3] Group 4: R&D Investment and Future Outlook - The company continues to maintain high levels of R&D investment, achieving good progress in RF-SOC and digital signal processor DSP fields [3] - The company plans to deepen technological innovation and seize opportunities for domestic substitution, focusing on the three main business segments of special integrated circuits, intelligent security chips, and quartz crystal frequency devices for future development [3]

Investment Rating - The report maintains a "Buy" rating for the company [5][8]. Core Views - The company reported a significant decline in revenue and net profit for 2024, with revenue at 5.511 billion yuan, down 27.26% year-on-year, and net profit at 1.179 billion yuan, down 53.43% year-on-year [1]. - The special integrated circuit segment remains the primary profit source, contributing 91.97% to the net profit, with expectations for high growth in the next 2-3 years as the industry recovers [4]. - The company is focusing on high R&D investment, amounting to 1.286 billion yuan in 2024, which is 23.34% of revenue, to expand its special chip categories [4]. Financial Performance Summary - In 2024, the company achieved a revenue of 5.511 billion yuan, a decrease of 27.26% year-on-year, and a net profit of 1.179 billion yuan, a decrease of 53.43% year-on-year [1][7]. - The special integrated circuit revenue was 2.577 billion yuan, down 42.57% year-on-year, with a net profit of 1.085 billion yuan, down 52.21% year-on-year [2]. - The smart security chip segment saw revenue growth of 3.69% year-on-year, reaching 2.487 billion yuan, with a net profit increase of 11.38% to 293 million yuan [3]. Future Projections - The company forecasts net profits of 1.682 billion yuan, 2.175 billion yuan, and 2.594 billion yuan for 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 33X, 25X, and 21X [5][7]. - The report anticipates a recovery in the special integrated circuit industry, leading to significant growth in the company's performance over the next few years [4].