Core Viewpoint - The company, Lanke Technology, is preparing for its IPO in Hong Kong, aiming to leverage its position as a leading supplier of memory interconnect chips and capitalize on the growing demand for AI and cloud computing infrastructure [1][3]. Group 1: Company Overview - Lanke Technology is recognized as one of the largest suppliers of memory interconnect chips globally, with a projected market share of 36.8% in 2024 [1]. - The company has a history of strategic capital operations, having previously listed in the US and A-share markets, reflecting its ongoing exploration of business structure [1][3]. - The product portfolio includes memory interface chips and high-performance interconnect chips, which are essential for AI and cloud computing applications [1][3]. Group 2: Market Position and Financial Performance - According to the prospectus, Lanke Technology is the leading supplier of memory interconnect chips and ranks among the top two suppliers of PCIe Retimer chips [3]. - The company anticipates a significant revenue increase in 2024, projecting total revenue of 3.638 billion RMB, a year-on-year growth of 59.2% [3]. - For the first half of 2025, Lanke Technology expects revenue of approximately 2.633 billion RMB, reflecting a growth of about 58.17% compared to the previous year [4]. Group 3: Challenges and Strategic Shifts - The company faced challenges due to misjudgments in the AI industry's direction, leading to a decline in its market position and stock performance [2][5]. - Lanke Technology's stock price has remained relatively stagnant, with a current price of 82.71 RMB, nearly unchanged from its initial listing price in 2019 [5]. - The decline in the company's previous CPU-based AI server platform, which saw a revenue drop of over 98% in 2023, has prompted a strategic pivot towards the "interconnect chip" market [6][5]. Group 4: Future Opportunities - The company is focusing on the "interconnect chip" market, which is expected to grow significantly as AI infrastructure evolves [7][8]. - The PCIe/USB Retimer market is projected to grow at a CAGR of 46.8% from 2024 to 2032, indicating substantial opportunities for Lanke Technology [8]. - The CXL memory expansion market is anticipated to reach $15 billion, with Lanke Technology's MXC chip expected to capture a significant share [8].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock performance that will exceed the market index by more than 15% over the next six months [11]. Core Insights - The company is projected to achieve a significant year-on-year revenue growth of approximately 58.17%, with an estimated revenue of about 26.33 billion yuan for the first half of 2025 [3][4]. - The net profit attributable to the parent company is expected to be between 11.00 billion yuan and 12.00 billion yuan, reflecting a year-on-year increase of 85.50% to 102.36% [3][4]. - The company plans to list in Hong Kong, which is anticipated to enhance its global presence and research capabilities [8]. Summary by Sections Financial Performance - For the second quarter of 2025, the company expects to report revenues of approximately 14.11 billion yuan, a year-on-year increase of 52.12% and a quarter-on-quarter increase of 15.47% [4]. - The sales revenue from interconnect chips is projected to be around 24.61 billion yuan, with a year-on-year growth of about 61% [4]. - The company has achieved record highs in both revenue and net profit for the second quarter, with net profit expected to be between 5.75 billion yuan and 6.75 billion yuan, marking a year-on-year increase of 55.51% to 82.56% [4]. Product Performance - The sales revenue from DDR5 memory interface and module supporting chips has significantly increased due to strong demand driven by the AI industry [4]. - The company’s high-performance interconnect chips have also seen substantial sales growth, contributing 2.94 billion yuan to the revenue, which is a significant increase compared to the previous year [4]. Future Outlook - The company anticipates continued growth in its revenue and net profit, with projections for 2025 and 2026 showing earnings per share of 1.92 yuan and 2.43 yuan, respectively [8][10]. - The planned issuance of H shares is expected to raise funds primarily for interconnect chip research and global business expansion, reinforcing the company's position in the AI and high-performance interconnect chip sectors [8].

Core Viewpoint - The company, Lanke Technology, anticipates significant growth in its financial performance for the first half of 2025, with projected revenue and net profit showing substantial increases compared to the same period last year [1]. Financial Performance Forecast - The company expects a revenue increase of approximately 58.17%, reaching about 26.33 billion yuan, with interconnect chip sales contributing around 24.61 billion yuan, reflecting a growth of 85.50% to 102.36% year-on-year [1]. - The net profit attributable to the parent company, excluding non-recurring gains and losses, is projected to be between 10.30 billion yuan and 11.20 billion yuan, indicating a year-on-year growth of approximately 89.17% to 105.71% [1]. Previous Year Performance - In the first half of 2024, the company reported a revenue of 1.665 billion yuan and a total profit of 640 million yuan, with a net profit attributable to the parent company of 593 million yuan [1]. Key Growth Drivers - The increase in revenue is attributed to a significant rise in shipment volumes, particularly for the second and third generation RCD chips, which have boosted sales of memory interface and module supporting chips [1]. - Sales of three high-performance transport chips (PCIe Retimer, MRCD/MDB, and CKD) reached 294 million yuan, marking a substantial increase compared to the previous year [1]. - The growing sales proportion of DDR5 memory interface chips and high-performance transport chips has led to an improvement in the company's gross profit margin compared to the same period last year [1]. Quarterly Performance Expectations - For the second quarter of 2025, the company anticipates revenue of approximately 14.11 billion yuan, representing a year-on-year increase of 55.51% to 82.56% and a quarter-on-quarter increase of 9.46% to 28.49% [1]. - The net profit attributable to the parent company, excluding non-recurring gains and losses, is expected to be between 527 million yuan and 617 million yuan, reflecting a year-on-year growth of approximately 58.56% and a quarter-on-quarter increase of about 16.00% [1].