Core Viewpoint - Hengshuo Co., Ltd. (688416.SH) has a diverse product portfolio including NOR Flash memory chips, general-purpose 32-bit MCU chips based on Arm® Cortex®-M0+ architecture, AI chip business (general AI SoC chips, AI algorithm models, and AI module boards), and large-capacity storage module products [1] Product Overview - The main products of the company include: - NOR Flash memory chips - General-purpose 32-bit MCU chips based on Arm® Cortex®-M0+ architecture - AI chips, which consist of general AI SoC chips, AI algorithm models, and AI module boards - Large-capacity storage module products such as SPI NAND, SD NAND, PPI NAND, eMMC, and DRAM [1] Application Fields - The primary application areas for the company's products are in consumer electronics and industrial control sectors [1] - The company's DDR4 modules have not yet been applied in cloud computing power [1]

Core Insights - The company achieved revenue growth in Q1 2025, with a total revenue of 19.09 billion yuan, representing a year-over-year increase of 17.32% and a quarter-over-quarter increase of 11.88% [1] - The storage chip business generated revenue of 51.94 billion yuan in 2024, with a year-over-year growth of 27.39% and a gross margin of 40.27% [2] - The MCU and analog products saw revenue of 17.06 billion yuan in 2024, with a year-over-year increase of 29.56% [3] Revenue and Profitability - In 2024, the company reported total revenue of 73.56 billion yuan, a year-over-year increase of 27.7%, and a net profit of 10.3 billion yuan, reflecting a significant year-over-year increase of 3660.8% [1] - The gross margin for the company was 38.0% in 2024, an increase of 3.58 percentage points year-over-year [1] Product Performance - The NOR Flash segment maintained its competitive position, ranking second in the global SPI NOR Flash market, with all products in the 55nm process node now in mass production [2] - The MCU product line achieved record-high shipment volumes, with over 700 MCU models produced, and the automotive sector is being targeted with new high-performance MCU offerings [3] - The sensor segment generated revenue of 4.48 billion yuan in 2024, with a year-over-year growth of 27.20% [3] Future Outlook - The company is expected to see continued growth in net profit, with projections of 15.73 billion yuan, 20.49 billion yuan, and 24.62 billion yuan for the years 2025 to 2027, respectively [4] - The current stock price corresponds to PE multiples of 55, 42, and 35 for the years 2025, 2026, and 2027 [4]