Core Viewpoint - Zhongke Lanyun's net profit is expected to triple in 2025 due to investments in GPU companies Moer Thread and Muxi Co., which have recently gone public in the A-share market [1][2]. Financial Performance - For 2025, Zhongke Lanyun anticipates revenue between 1.83 billion to 1.85 billion yuan, an increase of 10.97 million to 30.97 million yuan compared to the previous year, representing a growth of 0.60% to 1.70% [1][5]. - The expected net profit attributable to the parent company is projected to be between 1.4 billion to 1.43 billion yuan, an increase of 1.1 billion to 1.13 billion yuan year-on-year, indicating a growth of 366.51% to 376.51% [1][5]. Investment Insights - The significant increase in net profit is primarily attributed to the fair value changes from investments in Moer Thread and Muxi Co., which have shown substantial growth compared to the previous year [2][6]. - Zhongke Lanyun holds 1.3404 million shares of Moer Thread directly, accounting for 0.29% of its total share capital post-IPO, and an additional 670,100 shares indirectly through Qichuang Kexin, totaling 0.43% [2][6]. - The company also directly holds 854,300 shares of Muxi Co., representing 0.21% of its total share capital post-IPO [2][6]. Business Overview - Zhongke Lanyun specializes in the design, research, and sales of wireless audio SoC chips, with a product portfolio that includes Bluetooth headset chips, Bluetooth speaker chips, smart wearable chips, and more [3][7]. - The company’s products are integrated into the supply chains of major brands such as Xiaomi, realme, Honor, Baidu, and others [3][7]. - In the first three quarters of 2025, Zhongke Lanyun reported revenue of 1.3 billion yuan, a year-on-year increase of 4.29%, and a net profit of 224 million yuan, up 1.43% year-on-year [3][7].

Core Viewpoint - The company Zhongke Lanyun is expected to see a significant increase in net profit for 2025, primarily due to its investments in GPU companies Moer Thread and Muxi Co., which are projected to boost net profit by three times compared to the previous year [1][2]. Financial Performance - For the fiscal year 2025, Zhongke Lanyun anticipates revenue between 1.83 billion to 1.85 billion yuan, reflecting an increase of 10.96 million to 30.96 million yuan, or a year-on-year growth of 0.60% to 1.70% [1]. - The expected net profit attributable to the parent company is projected to be between 1.4 billion to 1.43 billion yuan, representing an increase of 1.1 billion to 1.13 billion yuan, or a year-on-year growth of 366.51% to 376.51% [1][2]. Investment Strategy - The substantial increase in net profit is attributed to the company's strategic investments in Moer Thread and Muxi Co., which are positioned in high-growth sectors such as GPU and advanced packaging testing [2]. - The non-recurring gains for 2025 are primarily driven by the fair value changes of the investments in Moer Thread and Muxi Co., leading to a significant rise in net profit [2]. Business Operations - Zhongke Lanyun specializes in the design, research, and sales of wireless audio SoC chips, with a product portfolio that includes Bluetooth headset chips, Bluetooth speaker chips, smart wearable chips, and more [3]. - The company's products are integrated into the supply chains of major brands such as Xiaomi, Honor, and Motorola, indicating a strong market presence [3]. Recent Performance Metrics - In the first three quarters of 2025, Zhongke Lanyun reported revenue of 1.3 billion yuan, a year-on-year increase of 4.29%, and a net profit of 224 million yuan, reflecting a growth of 1.43% [4]. - The stock prices of Moer Thread and Muxi Co. have experienced declines of 38% and 36.7%, respectively, since their debut on the STAR Market, with current market capitalizations of 290.26 billion yuan and 241.64 billion yuan [4].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [4][8]. Core Insights - The company is a leading domestic AIOT enterprise based on the RISC-V instruction set, maintaining a leading net profit margin in the industry. It has developed a range of high-performance CPU cores and various functional module IPs, including Bluetooth and audio chips, which are widely used in wireless interconnected terminals [4][14]. - The company has experienced significant revenue growth, with a compound annual growth rate (CAGR) of approximately 18.36% from 2020 to 2024, driven by its competitive pricing strategy and expansion into emerging markets [4][44]. - The global TWS earphone market is expected to grow significantly, with a projected CAGR of 34.88% over the next eight years, benefiting the company as it captures a substantial market share [4][8]. - The company is diversifying its AIOT product offerings, including smart wearables and wireless microphones, and is well-positioned to capitalize on the industry's growth [4][5]. Summary by Sections Company Overview - The company is a leading integrated circuit design firm focused on wireless audio SoC chips, established in 2016 and listed on the STAR Market in 2022. It has developed a product architecture consisting of ten product lines, including Bluetooth earphone chips and AIoT chips [14][21]. Product Structure - The company has a diverse product structure with a focus on Bluetooth earphone chips (59% of revenue), Bluetooth speaker chips (21%), and smart wearable chips (7%) for 2024. The product range is expanding to meet various market demands [4][28]. Financial Performance - The company's revenue is projected to reach 20.02 billion yuan in 2025, with a net profit of 3.17 billion yuan. The net profit margin has remained above 13%, indicating strong cost control and operational efficiency [6][44][49]. Market Opportunities - The global TWS earphone market is projected to reach approximately $51.4 billion in 2022, with significant growth expected in the coming years. The company is well-positioned to benefit from this trend due to its strong market presence and product offerings [4][8]. Competitive Position - The company maintains a competitive edge through its proprietary RISC-V architecture, which allows for cost savings and flexibility in chip design. This positions the company favorably against competitors in the AIOT space [17][49]. Future Outlook - The company is expected to continue its growth trajectory, with revenue forecasts of 24.11 billion yuan in 2026 and 29.65 billion yuan in 2027, reflecting a robust market demand for its products [6][8].

Core Insights - Zhongke Lanyun reported a revenue of 489.78 million yuan in Q3 2025, representing a year-on-year growth of 7.17% [2][3] - The net profit attributable to shareholders reached 80.08 million yuan, an increase of 11.11% compared to the same period last year [2][3] - For the first three quarters of 2025, total revenue was 1.30 billion yuan, up 4.29% year-on-year, with a net profit of 211.21 million yuan, reflecting a growth of 2.17% [2][3] Financial Performance - The total profit for Q3 was 87.76 million yuan, marking a 10.02% increase year-on-year [3] - The net profit excluding non-recurring gains was 70.73 million yuan, which is an 8.59% increase compared to the previous year [3] - The basic and diluted earnings per share for Q3 were both 0.66 yuan, up 10% year-on-year [3] Cash Flow and Investments - The net cash flow from operating activities was -16.27 million yuan, a decrease of 110 million yuan year-on-year [5] - The net cash flow from financing activities was -339 million yuan, which is an increase of 150 million yuan compared to the previous year [5] - The net cash flow from investing activities was 405 million yuan, compared to -929 million yuan in the same period last year [5] Company Overview - Zhongke Lanyun specializes in the research, design, and sales of wireless audio chips, including Bluetooth headset chips, Bluetooth speaker chips, smart wearable chips, wireless microphone chips, and AIoT chips [5]

Group 1: Hanbell Precise Machinery - The company expects a revenue of 3.674 billion yuan in 2024, a decrease of 4.62% year-on-year, and a net profit of 863 million yuan, down 0.28% [1] - In Q1 2025, revenue is projected to be 606 million yuan, a decline of 19.09%, with a net profit of 118 million yuan, down 19.58% [1] - The main business includes compressors and vacuum pumps, with applications in various fields such as commercial air conditioning and food cold chain [1] Group 2: Zhongke Lanyun - In Q1 2025, net profit decreased by 18.21% due to a 53.59% increase in R&D investment [2] - The company is expanding its product lines to ten categories, including Bluetooth headset chips and smart speaker chips [2] - The impact of U.S. tariff policies on the company's overall business is minimal [2] Group 3: Jinhaitong - In Q1 2025, the company achieved a revenue of 129 million yuan, a year-on-year increase of 45.21%, and a net profit of 25.66 million yuan, up 72.29% [3] - The growth is attributed to the recovery in demand for semiconductor packaging and testing equipment [3] - The company plans to enhance operational efficiency and focus on testing machines with more applications [3] Group 4: Huaxiang Co., Ltd. - In 2024, the company reported a core business sales volume of 451,000 tons, a year-on-year increase of 23.7%, and an overall revenue of 3.83 billion yuan, up 17.3% [4] - The net profit margin was 11.8%, with a net profit of 470 million yuan, an increase of 20.9% [4] - In Q1 2025, revenue continued to grow to 980 million yuan, a 3.5% increase, with a net profit margin of 13.2% [4]

Group 1: Zhongjian Technology - The management emphasizes high-quality and sustainable development, aligning with national strategies and the real economy [1] - Over 90% of overseas sales are from the European region, with limited and controllable impact from U.S. tariff policy adjustments [1] - The "mowing robot" developed by subsidiary Shanghai Gaike has received small batch orders, showcasing its advanced features [1] - A subsidiary in Thailand is set up in 2024, and the construction of the smart manufacturing center is progressing steadily [1] Group 2: Zhongke Lanyun - The product line has expanded to include ten categories, such as Bluetooth headset chips and Bluetooth speaker chips [2] - The non-net profit for 2024 is expected to grow by 40.44% year-on-year, driven by a rich product variety and increased sales volume [2] - In 2025, the company plans to develop audio chips for smart speakers, smartwatches, and R/VR devices, along with launching Wi-Fi and video product lines [2] - Collaborations with ByteDance's Volcano Engine have led to solutions compatible with the Doubao large model [2] Group 3: Kede CNC - The company has minimal exposure to U.S. tariffs as its core technology and components are not sourced from the U.S. [3] - Focus on independent R&D of key components has led to the successful development of five-axis CNC systems and servo drives [3] - Orders are driven by both repurchases of old models and the expansion of new products, with a 13% increase in traditional five-axis vertical machining center orders [3] Group 4: Xujie Electric - In 2024, the company achieved revenue of 17.089 billion yuan and a net profit of 1.117 billion yuan, marking an 11.09% year-on-year increase [4] - The revenue structure has been optimized, with a decline in low-margin new energy and system integration segments, while high-margin DC transmission revenue has grown [4] - The company has secured multiple State Grid DC transmission projects and increased orders in the Southern Grid market [4] - R&D investment reached 880 million yuan, focusing on key technologies like offshore wind power DC transmission systems [4]

Core Viewpoint - Dan Yi Investment has conducted research on Zhongke Lanyun, revealing significant growth in product lines and projected profit increases for 2024 and 2025 [1] Company Summary - Zhongke Lanyun has expanded its product line to include ten categories, such as Bluetooth headset chips and Bluetooth speaker chips [1] - The company expects a 40.44% year-on-year increase in net profit excluding non-recurring items for 2024, driven by a diverse product range, increased shipment volume, and revenue growth, despite a reduction in government subsidies [1] - In 2025, Zhongke Lanyun plans to develop audio chips suitable for smart speakers, smartwatches, and R/VR devices, in addition to launching Wi-Fi and video product lines [1] - The company has partnered with ByteDance's Volcano Engine to offer hardware and software solutions compatible with the Doubao large model [1] - Products have been integrated into the supply chains of brands such as Xiaomi, realme, and Baidu, with the Xunlong third-generation chip already applied in FIIL GS Links I headphones [1] - All products support Bluetooth 6.0 standards and have been certified by the Bluetooth Special Interest Group [1] - Revenue from smart wearable products has seen significant growth, particularly from the B568x and B569x series [1] - Zhongke Lanyun is actively exploring external acquisitions to absorb companies or teams with technological and research capabilities [1]