Core Viewpoint - Unisoc is a leading enterprise in the integrated circuit chip design sector in China, with a strong focus on chip design and sales, as well as the development and production of piezoelectric quartz crystal components and LED sapphire substrate materials [1] Group 1: Business Performance - In Q3 2025, Unisoc achieved a revenue of 4.904 billion yuan, ranking 10th in the industry out of 48 companies, surpassing the industry average of 2.912 billion yuan and the median of 1.156 billion yuan [2] - The net profit for the same period was 1.262 billion yuan, ranking 5th in the industry, exceeding the industry average of 348 million yuan and the median of 107 million yuan [2] - Revenue growth year-on-year was 15.05%, while net profit growth was 25.04%, driven by stable demand for special integrated circuits and improved cost control [6][7] Group 2: Financial Ratios - As of Q3 2025, Unisoc's asset-liability ratio was 27.02%, higher than the industry average of 24.46%, showing a slight increase from 26.84% in the same period last year [3] - The gross profit margin for the same period was 56.60%, significantly above the industry average of 36.52%, although it slightly decreased from 56.81% year-on-year [3] Group 3: Leadership and Shareholder Structure - The chairman, Chen Jie, aged 62, took office in October 2024, bringing extensive experience in chip research and management [4] - As of September 30, 2025, the number of A-share shareholders decreased by 0.53% to 182,400, with an average holding of 4,656.58 shares, an increase of 0.54% [5] Group 4: Future Outlook - Forecasts for net profit from 2025 to 2027 are 1.675 billion, 1.926 billion, and 2.613 billion yuan, with corresponding price-to-earnings ratios of 44, 39, and 28 times [6] - The company is expected to maintain a strong position in the FPGA and system-level chip markets, with growth opportunities in automotive electronics and eSIM sectors [7]

Investment Rating - The report maintains a "Buy" rating for the company [2][8]. Core Insights - The company has set clear growth targets in its stock option incentive plan, aiming for a net profit increase of at least 10% in 2025 compared to 2024, reflecting management's long-term confidence [5]. - The revenue from special integrated circuits is beginning to recover, with a reported revenue of 3.047 billion yuan in H1 2025, a 6.07% increase year-on-year, and a net profit of 653 million yuan, up 4.39% year-on-year [5]. - The company is well-positioned to benefit from the acceleration of special information technology and the growth in consumer demand, indicating high growth potential in the future [8]. Financial Performance Summary - For 2025, the company is projected to achieve total revenue of 6.701 billion yuan and a net profit of 1.611 billion yuan, with corresponding P/E ratios of 46.08 and 34.63 for 2024 and 2025 respectively [7][8]. - The company's gross margin is expected to stabilize around 52.6% in 2025, with a net profit margin of 24.1% [9]. - The total assets are projected to grow from 17.320 billion yuan in 2024 to 24.364 billion yuan by 2027, indicating a strong asset growth trajectory [9]. Business Development Path - The company has established a dual development path, with both special integrated circuits and security chips contributing significantly to revenue, with respective shares of 48.20% and 45.78% [5]. - The demand for eSIM cards and automotive MCUs is expected to grow, with the company ready to capitalize on these opportunities once market conditions improve [5][6]. - The company has made technological advancements in digital currency and stablecoin hardware, positioning itself to benefit from future commercial applications [6].