Group 1 - The company maintains an optimistic outlook for overall revenue in the coming year, primarily driven by several key business segments [1] - The 4G cellular IoT business is expected to remain a core revenue pillar through 2026, supported by a solid market position and strong customer base [1] - The 5G RedCap business has completed its full product line layout, with ample project reserves and successful collaborations leading to bulk shipments, indicating steady revenue growth potential [1] Group 2 - The 5G eMBB business has recently secured customer orders, with large-scale shipments anticipated to begin in Q1 2026 [1] - The smartphone SoC business is set to launch multiple products annually, with recent advancements including the first 5G smartphone SoC chip, expanding into various terminal applications [1] - The chip customization business has a rich order reserve, with significant revenue growth expected as projects are delivered in 2026 [1]

Core Insights - The company, Aojie Technology, has a strong presence in the custom chip business, covering key application areas such as cloud-side AI computing, wearable devices, and RISC-V, serving a diverse range of top-tier clients [2] - The company prioritizes collaboration with leading CSP manufacturers and system vendors based on client strength, project scale, compliance, and potential for mass production, indicating a strategic approach to client selection [2] - There is a robust demand for custom chip services, and the company is recognized as a leading player in this sector in China, with sustainable business prospects due to its deep technical expertise and extensive experience in advanced process mass production [2] - The company primarily offers Turn-key one-stop services, ensuring continued revenue from clients after the completion of NRE (Non-Recurring Engineering) costs, as it remains responsible for subsequent mass production [2]

Core Viewpoint - The company, Aojie Technology (688220), is experiencing growth in its custom chip business, with expectations for significant revenue increases in the coming years, particularly in 2026. Group 1: Business Model and Revenue Recognition - The company employs a Turnkey model for its custom chip business, providing comprehensive services from design to mass production, with revenue recognized upon client acceptance after project completion, typically taking 1 to 2 years [2] - During the mass production phase, the company charges based on a cost-plus principle, and the revenue from these sales is included in the custom chip business segment, not in self-developed chip sales [3] Group 2: Order Status and Revenue Forecast - The company has a strong order backlog in its custom chip business, with expectations for revenue to grow significantly in 2026 compared to 2024, although specific client details cannot be disclosed due to confidentiality agreements [4] Group 3: Product Development and Market Position - The company is focusing on developing wearable and cloud inference chips in collaboration with internet companies [5] - The company has advantages in AP (Application Processor) design, with expertise in complex chip designs and proprietary modules for graphics, image, and signal processing, positioning itself to meet demands in automotive and robotics sectors [6] Group 4: Market Outlook and Performance - The company is optimistic about the RISC-V server chip market and has initiated collaborations with several enterprises in this area, expecting strong sales growth in the second half of the year, traditionally a peak season for the semiconductor industry [7] - The company is advancing its 5G smartphone chip, which is in the late stages of development and is expected to enhance its product lineup starting in the second half of next year [10] Group 5: Financial Performance - For the first half of 2025, the company reported a main revenue of 1.898 billion yuan, a year-on-year increase of 14.67%, while the net profit attributable to shareholders was -245 million yuan, up 7.29% year-on-year [13] - The company’s gross margin stands at 24.72%, with a debt ratio of 16.05% [13] Group 6: Analyst Ratings and Predictions - Recent analyst reports indicate a positive outlook for the company, with three institutions giving buy ratings and a target price averaging 136.7 yuan [14]

Investment Rating - The investment rating for the company is "Buy" with a target price not specified [4]. Core Viewpoints - The company achieved a revenue of 3.386 billion RMB in 2024, representing a year-on-year increase of 30.23%. However, the net profit attributable to the parent company was -693 million RMB, a decline of 37.01% year-on-year [1][3]. - The company is experiencing strong growth in its chip business, particularly in the cellular IoT segment, which has led to significant revenue increases. The main business segments include chip products (89.02%), custom chip services (9.92%), and semiconductor IP licensing (1.04%) [1][2]. - The company continues to invest heavily in R&D, with approximately 1.242 billion RMB allocated in 2024, accounting for 36.68% of its revenue. This investment supports ongoing product upgrades and technological innovation [2][3]. Financial Data and Projections - The company forecasts revenues of 4.571 billion RMB in 2025, with a growth rate of 35%. The projected net profit for 2025 is -330 million RMB, improving to 60 million RMB in 2026 and 199 million RMB in 2027 [3][11]. - The EBITDA for 2024 is projected at 861.49 million RMB, with a significant increase in operating income expected in the following years [3][11]. - The company’s total assets are projected to reach 9.845 billion RMB by 2027, with a debt-to-equity ratio of 41.42% [11].