Core Viewpoint - Longxin Co., Ltd. is experiencing steady revenue growth and improving profitability, with a focus on expanding its product lines in high-performance computing (HPC) and automotive sectors [1][2]. Financial Performance - For the first three quarters of 2025, the company reported revenue of 389 million yuan, a year-on-year increase of 17%, and a net profit of 125 million yuan, up 32% year-on-year. The gross margin stood at 55.9%, and the net margin was 32%, reflecting a 3.8 percentage point increase year-on-year [1]. - In Q3 2025, revenue reached 142 million yuan, representing a year-on-year growth of 27.2% and a quarter-on-quarter increase of 3.1%. The net profit for the quarter was 53 million yuan, up 66.2% year-on-year and 23.2% quarter-on-quarter, with a gross margin of 57.8% and a net margin of 37.3% [1]. Product Development - The company is in the full promotion phase of its automotive SerDes chips, having entered new business areas such as eBikes, camera gimbals, and drones. In the first half of 2025, two new products received AEC-Q100 Grade 2 certification [2]. - Longxin is expanding its video bridge and processing chip product line, integrating AI technology to meet the growing demand for edge computing. Continuous technical improvements have led to reductions in chip area and power consumption, enhancing market competitiveness [2]. Strategic Initiatives - The company is planning to list H-shares to deepen its international strategy, enhance overseas financing and operational capabilities, and attract top talent to improve overall strength [2]. Investment Outlook - Longxin Co., Ltd. is well-positioned in the high-speed mixed-signal chip market, with expectations for gradual volume growth in automotive SerDes chips and ongoing developments in AI and server sectors. Revenue and net profit forecasts for 2025-2027 have been adjusted accordingly [2].

Investment Rating - The investment rating for the company is "Accumulate" [2] Core Insights - The company, Longxun Co., Ltd. (688486.SH), specializes in high-definition video bridging and processing chips, as well as high-speed signal transmission chips, with applications in PCs, displays, video conferencing systems, AR/VR, and future expansions into automotive and HPC sectors [1][5] - The company reported steady revenue growth in Q1-Q3 2025, with Q3 revenue reaching 142 million yuan, a year-on-year increase of 27.2% and a quarter-on-quarter increase of 3.1% [5] - The company is focusing on enhancing its two core product lines and is making significant advancements in HPC and other high-performance computing chips [5] - Longxun is planning to issue H shares to enhance its international presence and operational capabilities [5] - The financial forecasts for 2025-2027 have been adjusted, with expected revenues of 5.81 billion yuan, 8.46 billion yuan, and 12.01 billion yuan, respectively, and corresponding net profits of 1.85 billion yuan, 2.59 billion yuan, and 3.63 billion yuan [5] Financial Data and Valuation - Total revenue for 2023 is projected at 323 million yuan, with a year-on-year growth of 34%, and expected to reach 1.201 billion yuan by 2027 [1][11] - The company's net profit for 2023 is estimated at 103 million yuan, with a growth rate of 48%, and is expected to grow to 363 million yuan by 2027 [1][11] - The PE ratio is projected to decrease from 88.6 in 2023 to 25.1 in 2027, indicating improving valuation over time [1][11] - The company has a low debt ratio of 4.8%, indicating strong financial health [2]

Core Viewpoint - Longxin Co., Ltd. focuses on high-definition video bridging and processing chips, as well as high-speed signal transmission chips, with applications in various fields including PC peripherals, displays, video conferencing systems, and AR/VR. The company is expanding into automotive and HPC sectors in the future [1]. Financial Performance - In H1 2025, the company reported revenue of 250 million yuan, a year-on-year increase of 11.4%, with a net profit attributable to shareholders of 72 million yuan, up 15.2% year-on-year. The gross margin was 54.88%, slightly up, and the net margin was 29%, an increase of 1 percentage point year-on-year [1]. - In Q2 2025, revenue reached 138 million yuan, a year-on-year increase of 17.4% and a quarter-on-quarter increase of 26.6%. The net profit attributable to shareholders was 43 million yuan, up 38.3% year-on-year and 50.9% quarter-on-quarter. The gross margin was 55.2%, up 0.8 percentage points quarter-on-quarter, primarily due to better profitability from new products [1]. Business Expansion - The company is successfully expanding into new business areas such as AI edge computing, supercomputing, and data centers. The automotive SerDes chips are currently in a full promotion phase, having entered new fields like eBikes, photography gimbals, and drones. In H1, two new products passed AEC-Q100 Grade 2 certification [2]. - The company is actively developing high-speed data transmission chips for AI and edge computing, with ongoing research in PCIe and SATA protocols, and some projects have entered the tape-out stage. These developments have significant market potential in supercomputing, AI, data centers, and consumer electronics [2]. Supply Chain and R&D - In H1 2025, the company added two new wafer fabs to enhance supply stability, with R&D investment amounting to 57.06 million yuan, a year-on-year increase of 23%, representing 23.1% of revenue. The company has initiated a multi-location backup mode for supply stability and cost optimization [3]. - The company is advancing in the development of mixed-signal chips at 28nm and 22nm processes, with products achieving a maximum transmission rate of 20Gbps, marking a significant step in process iteration and upgrade [3]. Investment Outlook - Longxin Co., Ltd. is deeply engaged in the high-speed mixed-signal chip market, with the automotive SerDes chips expected to gradually ramp up production. The company is also positioning itself in AI edge and server sectors, with adjusted revenue expectations for 2025-2027 [3].