Core Viewpoint - The company has shown significant revenue growth in 1H25, driven by new product launches and industry recovery, despite reporting a net loss [1][2][3] Financial Performance - In 1H25, the company achieved revenue of 222 million yuan, a year-on-year increase of 43.41%, while the net profit attributable to shareholders was a loss of 104 million yuan, reducing losses by 4 million yuan compared to the previous year [1] - In Q2 2025, revenue reached 141 million yuan, reflecting a year-on-year growth of 71.39% and a quarter-on-quarter increase of 73.74% [1] - The gross margin improved to 43.98% in Q2 2025, with a quarter-on-quarter increase of 3.24 percentage points [1][2] Product Development - The company has successfully launched several new products, including 2.5G PHY chips, which generated revenue of 73 million yuan, a year-on-year increase of 88.34% [2] - The company plans to continue introducing new products in 2023 and 2024, contributing to a significant revenue increase from these new offerings [2] - The automotive-grade chip segment has seen rapid growth, with revenue from automotive PHY chips reaching 14 million yuan, a year-on-year increase of 215.48% [2] Market Outlook - For 2025, the company expects continued revenue growth driven by the demand for industrial-grade products and the launch of new products [3] - The company anticipates that revenue from 2.5G PHY chips will reach new highs, with plans to introduce single-port 10G PHY chip samples by the end of 2025 [3] Investment Recommendation - The target price is set at 140.50 yuan, maintaining a "buy" rating based on projected revenues of 562 million yuan, 830 million yuan, and 1.215 billion yuan for 2025, 2026, and 2027 respectively [4] - The company is valued at 20 times the 2025 price-to-sales ratio, reflecting its growth potential as a rare domestic PHY chip supplier [4]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 126.50 RMB [4][8]. Core Views - The company achieved a revenue of 396.23 million RMB in 2024, representing a year-over-year increase of 44.86%, but reported a net loss attributable to shareholders of 201.68 million RMB, a decrease of 34.36% year-over-year [2][4]. - The growth in revenue is attributed to the release of new products such as the 2.5G PHY and multi-port switch chips, alongside a recovery in demand from the industrial-grade market [2][3]. - The company is expected to continue its rapid growth in 2025, driven by various consumer stimulus policies and the ongoing recovery in the industrial-grade market [3][4]. Summary by Sections Financial Performance - In 2024, the company reported a total revenue of 396.23 million RMB, with a significant increase in industrial-grade revenue by 108.89% to 225 million RMB, and commercial-grade revenue up by 61.72% to 164 million RMB [2][6]. - The gross margin for Q1 2025 was 40.74%, slightly down from the previous year, primarily due to increased competition in the industrial-grade product market [2][3]. Product Development - The company is expanding its product lines, including the launch of a 24-port switch chip series and the introduction of automotive Ethernet switch chips, which are expected to contribute to revenue in 2025 [3][4]. - The 2.5G PHY chip is projected to maintain rapid growth, with the introduction of a four-port version expected to open up larger market opportunities [3][4]. Market Outlook - The report anticipates that the company's revenue will reach 562.10 million RMB in 2025, with continued growth expected in subsequent years [4][6]. - The company is positioned as a rare supplier of PHY chips in China, with a resilient demand in the industrial-grade market and potential revenue elasticity from new product launches [4][6].