Core Viewpoint - The report from Haitong International highlights that Jingjia Micro is maintaining high R&D investment to pursue technological leadership, with a focus on GPU development and applications in artificial intelligence [1] Group 1: R&D and Product Development - Jingjia Micro continues to invest heavily in R&D, aiming for technological advancement and innovation [1] - The company has developed the Jinghong GPU and the JM11 graphics card, establishing a dual-line product strategy [1] - The internal management system transformation is driving innovation within the company [1] Group 2: Market Outlook and Financial Projections - The company is optimistic about the future of GPUs, particularly in the AI sector, and is committed to advancing from "specialized" to "specialized + general-purpose" strategies [1] - Successful development of high-performance intelligent computing modules and systems fills product gaps in AI training, inference, and scientific computing [1] - Due to downstream demand fluctuations and high R&D investments, the company's performance has been volatile, but it is expected to gradually recover driven by AI and new infrastructure [1] - EPS forecasts for 2025-2027 are projected at 0.06, 0.20, and 0.39 yuan respectively, with a target price of 86.50 yuan, reflecting a premium over the average [1]

Core Viewpoint - Haitong International has issued a report on August 7, giving a rating to Jingjia Micro (300474.SZ) with a target price of 86.50 CNY, highlighting the company's strong R&D investment and innovative management practices [1] Group 1: Company Performance - The company maintains high R&D investment to pursue technological leadership [1] - Jingjia Micro has a dual product line strategy with its Jinghong GPU and JM11 graphics card [1] - Internal management system reforms are driving innovation within the company [1] Group 2: Risks - Potential risks include product iterations not meeting expectations [1] - Downstream demand may fall short of projections [1]

Investment Rating - Maintain Outperform rating with a target price of RMB 86.50 [5][10] Core Views - The company is experiencing performance fluctuations due to downstream demand and high R&D investment, but is expected to recover driven by AI and information innovation [10] - EPS forecast for 2025-2027 is RMB 0.06, 0.20, and 0.39 respectively, with a premium applied above average value, resulting in a 65x PS for 2025 [5][10] - Revenue for 2024 is projected at RMB 466 million, a year-on-year decrease of 34.62%, with a net profit attributable to shareholders of -RMB 165 million, a year-on-year decrease of 376.67% [10] Financial Summary - Total revenue for 2023 is RMB 713 million, with a projected decline to RMB 466 million in 2024, followed by recovery to RMB 695 million in 2025, RMB 935 million in 2026, and RMB 1,220 million in 2027 [4] - Net profit attributable to shareholders is expected to be -RMB 165 million in 2024, recovering to RMB 32 million in 2025, RMB 106 million in 2026, and RMB 205 million in 2027 [4] - R&D investment remains high, accounting for 68.17% of revenue in Q1 2025, with a total investment of RMB 70 million [10] Product Development and Strategy - The company is transitioning from specialized to general-purpose GPUs, focusing on AI applications and developing high-performance GPUs, modules, and systems [10] - Successfully developed the Jinghong series high-performance intelligent computing modules and systems, filling product gaps in AI training, inference, and scientific computing [10] - The JM11 series graphics processing chips are designed for cloud applications and high-performance rendering needs, currently in the promotion stage [10] Management and Innovation - Comprehensive management reform is being implemented to optimize business processes and improve product development efficiency and quality [10] - The company is adopting a low-cost strategy through lean management, process optimization, and technology upgrades to drive product innovation and reduce operating costs [10] - Continuous focus on building organizational capabilities and enhancing management leadership and execution through systematic training [10]