Core Viewpoint - The company experienced a significant decline in revenue and profitability in the first half of 2025, with expectations for a recovery in gross margin due to cost reduction efforts and improved production efficiency in the latter half of 2024 [1][2][3]. Financial Performance - In the first half of 2025, the company reported revenue of 1.704 billion yuan, a year-over-year decrease of 25.42%, and a net loss attributable to shareholders of 147 million yuan, down 141.59% year-over-year [1]. - The second quarter of 2025 saw revenue of 948 million yuan, a year-over-year decline of 13.43% but a quarter-over-quarter increase of 25.43% [1]. - Gross margin decreased by 13.4 percentage points to 28.75% in the first half of 2025, with a gross margin of 26.95% in Q2 2025, reflecting a year-over-year decline of 14.4 percentage points [1]. Product Line Performance - Revenue from the RF discrete devices segment was 899 million yuan, a year-over-year decrease of 29.01%, accounting for 53% of total revenue, with a gross margin decline of 15.0 percentage points to 28.25% [1]. - Revenue from the RF module segment was 756 million yuan, down 21.79% year-over-year, representing 44% of total revenue, with a gross margin decrease of 12.0 percentage points to 28.74% [1]. Future Outlook - The company anticipates a stabilization and recovery of gross margins as production efficiency improves and cost reduction milestones are achieved [2]. - The L-PAMiD product line has entered mass production, and the WiFi7 module products are being shipped at scale, indicating a positive trend in product development and market readiness [2]. - The company is focusing on expanding its product matrix in high-value segments and aims to leverage its technology in various applications, including IoT and smart home devices [2]. Investment Recommendation - The company is positioned as a platform enterprise for RF front-end products, maintaining an "outperform the market" rating despite downward adjustments in profit forecasts for 2025-2027 due to weak downstream demand and high initial production costs [3].

Investment Rating - The report maintains a rating of "Accumulate" for the company [5] Core Views - The company has shown a quarter-on-quarter revenue increase of 25% in Q2, with improved capacity utilization on the 6/12 inch production lines, indicating a potential stabilization and recovery in gross margin [1][4] - The company is positioned as a leading player in the domestic semiconductor RF chip market, having completed the transition to a Fab-Lite operating model, which is expected to unlock a high-end RF front-end market worth hundreds of billions [4] Financial Summary - For 2023, the projected revenue is 4,378 million yuan, with a year-on-year growth rate of 19.1%. The net profit attributable to shareholders is expected to be 1,122 million yuan, reflecting a growth rate of 5.0% [15] - The revenue for H1 2025 is reported at 1,704 million yuan, a year-on-year decrease of 25.42%, with a net loss attributable to shareholders of 147 million yuan [11][12] - The gross margin for Q2 2025 is reported at 26.95%, down 4.06 percentage points from the previous quarter, primarily due to increased competition and depreciation costs [9][10] Production Capacity and Product Development - The 6-inch production line has successfully ramped up production of various RF components, including duplexers and integrated filters, with the L-PAMiD product entering mass production [3][4] - The 12-inch production line has achieved a monthly production capacity of 5,000 chips, with efficient utilization rates, and is gradually moving towards mass production of second-generation technology platforms [4] Market Position and Future Outlook - The company is expected to achieve net profits of 425 million yuan, 766 million yuan, and 1,103 million yuan for the years 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 100.6, 55.9, and 38.8 [4][15] - The report emphasizes the potential for the company to capture significant market share in the high-end RF front-end market, driven by its technological advancements and production capabilities [4]

Core Viewpoint - The company reported a significant decline in revenue and net profit for the first half of 2025, with expectations for gradual recovery driven by new product launches and improved production efficiency [1][2][3] Financial Performance - In 1H25, the company achieved revenue of 1.704 billion yuan, a year-over-year decrease of 25.42%, and a net loss attributable to shareholders of 147 million yuan, a year-over-year decline of 141.59% [1] - In Q2 2025, revenue was 948 million yuan, down 13.43% year-over-year but up 25.43% quarter-over-quarter, with a net loss of 101 million yuan, reflecting a year-over-year decline of 164.35% [1] - The gross margin decreased by 4.06 percentage points to 26.95% due to increased competition and depreciation costs [1] Product Development and Market Outlook - The company is focusing on new product launches such as L-PAMiD and WiFi FEM to stabilize revenue amidst a challenging global smartphone market [2] - The first-generation self-produced RF switches and low-noise amplifiers have achieved stable output, with the second-generation technology platform gradually entering mass production [2] - The company is also developing new wireless connection products, including automotive ultra-wideband (UWB) chips, which are expected to contribute to revenue growth [2] Investment Recommendations - The target price is set at 101.00 yuan, maintaining a "buy" rating despite a downward adjustment in revenue and gross margin forecasts for 2025-2027 [3] - Projected revenues for 2025, 2026, and 2027 are 4.324 billion yuan, 4.999 billion yuan, and 5.868 billion yuan, respectively, with net profits of 52 million yuan, 486 million yuan, and 991 million yuan [3] - The company is valued at 12.5 times the 2025 price-to-sales ratio, reflecting its position as a leading domestic RF chip manufacturer [3]

Investment Rating - The investment rating for the company is "Outperform the Market" [6][4]. Core Views - The company is expected to experience a revenue growth of 2.48% year-on-year in 2024, reaching 4.487 billion yuan, but faces significant pressure on profitability with a projected net profit decline of 64.20% to 402 million yuan [2][4]. - The company plans to raise up to 3.5 billion yuan through a private placement to expand its RF chip manufacturing capacity and supplement working capital, addressing capacity bottlenecks and enhancing customization capabilities [4][6]. - The RF module revenue is projected to grow by 18.58% year-on-year in 2024, increasing its share to 42% of total revenue, while the RF discrete device revenue is expected to decline by 7.57% [3][4]. Financial Summary - Revenue and Profit Forecasts: - 2023: Revenue of 4.378 billion yuan, net profit of 1.122 billion yuan - 2024: Revenue of 4.487 billion yuan, net profit of 402 million yuan - 2025E: Revenue of 5.356 billion yuan, net profit of 709 million yuan - 2026E: Revenue of 6.644 billion yuan, net profit of 1.048 billion yuan - 2027E: Revenue of 7.875 billion yuan, net profit of 1.276 billion yuan [5][26]. - Key Financial Ratios: - Earnings per Share (EPS) for 2024 is projected at 0.75 yuan, with a PE ratio of 106.6 [5][26]. - The EBIT margin is expected to be 11.6% in 2024, improving to 18.8% by 2027 [5][26]. - Research and Development: - R&D expenses are projected to increase by 58.53% year-on-year to 999 million yuan in 2024, with an R&D expense ratio of 22.22% [2][5].