Investment Rating - The investment rating for the company is "Buy-A" with a target price of 119.7 CNY, maintaining the rating [4]. Core Insights - The company reported a revenue of 1.741 billion CNY for Q3 2025, a year-on-year increase of 7.20%, while the net profit attributable to shareholders was 201 million CNY, reflecting a decline of 13.14% [1]. - The company is focusing on enhancing its AI and smart vision core technologies, with R&D expenses reaching 383 million CNY in Q3 2025, a 10.93% increase year-on-year, maintaining a high R&D expense ratio of 22.02% [2]. - The company is benefiting from the global trend towards edge computing, with its AIoT chip solutions expanding into new fields such as smart cars and industrial vision [3]. Financial Performance - The company expects revenues of 7.329 billion CNY, 9.067 billion CNY, and 10.979 billion CNY for 2025, 2026, and 2027 respectively, with net profits projected at 1.062 billion CNY, 1.440 billion CNY, and 1.804 billion CNY for the same years [7]. - The company’s gross margin is expected to improve from 36.4% in 2023 to 40.8% by 2026 [9]. - The projected earnings per share (EPS) for 2025 is 2.52 CNY, with a price-to-earnings (PE) ratio of 38.8 [8]. Market Position and Growth Potential - The company is strategically positioned to benefit from the edge computing market, which is projected to reach 13.2 billion USD in China by 2028 [3]. - Collaborations with major companies like Google, Samsung, and Walmart highlight the adaptability and market appeal of the company's technology platform [3]. - The company has successfully launched new products, including the S905X5 AIoT chip and various smart vision chips, which have seen significant sales growth [2].