Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expectation to outperform the benchmark index by over 20% in the next six months [4][18]. Core Insights - The company reported a significant decline in revenue and profit for the first half of 2025, with total revenue of 193 million yuan, down 44.78% year-on-year, and a net loss of 88 million yuan, down 356.51% year-on-year. The second quarter alone saw revenue of 91 million yuan, a 62.40% decline year-on-year [1][8]. - Despite the revenue decline, the company's chip business showed resilience, with a slight revenue drop of 3.39%, now accounting for 33.25% of total revenue. The small specialized radar segment also experienced a reduced decline of 18.84%, indicating improved stability [8]. - The company is focusing on technological advancements, with R&D investment increasing by 21.76% to 153 million yuan, representing 79.40% of revenue. This investment supports the development of proprietary GPUs, expanding applications from graphics rendering to computing [8]. - A strategic shift is underway as the company plans to invest 220 million yuan in Chengheng Micro, aiming to enter the edge AI chip market. This move is expected to create a dual-driven model of "GPU + edge AI chips," enhancing domestic computing power applications [8]. - The company anticipates a recovery in performance, projecting revenues of 791 million yuan, 1.234 billion yuan, and 1.9 billion yuan for 2025, 2026, and 2027, respectively, with growth rates of 69.6%, 56.1%, and 53.9% [8]. Financial Summary - The company’s total revenue for 2024 is projected at 466 million yuan, with a year-on-year decline of 34.6%. The net profit is expected to improve to 0 million yuan in 2025, with a staggering growth rate of 99.8% in 2026 [3][9]. - The earnings per share (EPS) is forecasted to be -0.32 yuan in 2024, transitioning to 0.00 yuan in 2025 and reaching 0.16 yuan in 2026 [3][9]. - The company’s price-to-sales (P/S) ratio is estimated at 45x for 2026, leading to a target market capitalization of 55.5 billion yuan and a target price of approximately 106 yuan per share [8].

Company Overview - Changsha Jingjia Microelectronics Co., Ltd. focuses on information detection, processing, and comprehensive applications, providing high-quality and reliable products and solutions [1][2] - The company specializes in high-reliability electronic products, with core businesses in graphics display control, specialized radar, and chip sectors [2][3] Financial Performance - In the first half of 2025, the company experienced fluctuations in operating performance due to industry demand, project delays, increased R&D investment, and intense market competition [4] - R&D investment reached 153 million RMB, accounting for 79.40% of operating revenue, ensuring continued product iteration and strategic market expansion [4] Investment Activities - The company plans to invest 220 million RMB in Wuxi Chengheng Microelectronics Co., Ltd., acquiring a 33.59% stake and becoming the controlling shareholder [5][6] - This investment aims to enter the edge AI chip sector, enhancing the company's product matrix and market capabilities [9] Edge AI Chip Development - Edge AI chips are designed for local data processing, reducing reliance on cloud computing, and are expected to see explosive demand growth [7][9] - Chengheng Micro focuses on AI chip design and development, with products targeting applications in object recognition, edge computing, and intelligent terminals [6][7] Strategic Outlook - The partnership with Chengheng Micro is expected to leverage technical and market synergies, creating a dual-driven development model of "high-performance GPU + edge AI chips" [9] - This strategy aims to enhance the company's competitive capabilities and create new revenue growth points in the AI sector [9]