Investment Rating - The report maintains a "Recommended" investment rating for the company [1] Core Views - The company has significantly increased its operating performance in the first half of 2025, with revenue reaching 2.633 billion yuan, a year-on-year growth of 58.17%, and a net profit attributable to shareholders of 1.159 billion yuan, up 95.41% year-on-year [5][10] - The growth is attributed to strong demand in the AI industry, leading to increased sales of DDR5 memory interface and module supporting chips, as well as high-performance transport chips [9][10] - The company is positioned as a leading global player in interconnect chips, with expectations for stable growth driven by market demand and technological advancements [10] Summary by Sections Financial Performance - In the first half of 2025, the company achieved a revenue of 2.633 billion yuan, a 58.17% increase year-on-year, and a net profit of 1.159 billion yuan, reflecting a 95.41% increase [5][9] - The second quarter of 2025 saw revenue of 1.411 billion yuan, a 52.12% year-on-year increase, and a net profit of 634 million yuan, up 71.40% year-on-year [9][10] Revenue Breakdown - The interconnect chip product line generated revenue of 2.461 billion yuan, a 61.00% increase year-on-year, with a gross margin of 64.34% [9] - High-performance transport chips contributed 294 million yuan in sales, marking a significant increase compared to the previous year [9] Future Projections - The company forecasts net profits of 2.352 billion yuan for 2025, 3.127 billion yuan for 2026, and 3.664 billion yuan for 2027, with corresponding P/E ratios of 60.5X, 45.5X, and 38.8X [10][12] - Revenue projections for 2025 to 2027 are 5.752 billion yuan, 7.832 billion yuan, and 9.184 billion yuan, respectively [12] Financial Ratios - The gross margin is expected to improve to 59.8% in 2025, with a net margin of 40.9% [12] - Return on equity (ROE) is projected to reach 18.5% in 2025, increasing to 22.2% by 2027 [12] Cash Flow - The net cash flow from operating activities for 2025 is projected to be 1.849 billion yuan, with a net profit of 2.312 billion yuan [13]

Core Viewpoint - The report from Qunyi Securities highlights that Lanke Technology is experiencing significant growth in revenue and net profit due to the increasing demand in the memory industry driven by AI applications, leading to an upgraded target price of 160.0 yuan and a buy rating [1]. Financial Performance - In the first half of 2025, Lanke Technology achieved revenue of 2.63 billion yuan, a year-over-year increase of 58.2%, and a net profit of 1.16 billion yuan, up 95.4% year-over-year. The non-GAAP net profit reached 1.09 billion yuan, reflecting a 101% year-over-year growth [2]. - For Q2 2025 alone, the company reported revenue of 1.41 billion yuan, a 52.1% year-over-year increase, and a net profit of 630 million yuan, up 71.4% year-over-year, with a non-GAAP net profit of 590 million yuan, marking an 81% year-over-year increase and a 17% quarter-over-quarter growth [2]. Growth Drivers - The substantial growth in Lanke Technology's performance is attributed to several factors: 1. The booming AI industry has led to a surge in demand for DDR5 memory interface and module supporting chips, significantly increasing shipment volumes [2]. 2. The sales revenue from three high-performance chips (PCIe Retimer, MRCD/MDB, and CKD) reached 290 million yuan, showing a substantial increase compared to the previous year [1][2]. 3. The overall gross margin improved to 60.44%, an increase of 2.66 percentage points year-over-year, due to the rising sales of DDR5 memory interface chips and high-performance chips [2]. Future Outlook - The domestic internet giants such as Alibaba, Tencent, and ByteDance are entering a critical phase in the computing power arms race, with expectations of exponential growth in domestic computing power demand over the next three years, presenting new opportunities for the DRAM industry [1]. - Lanke Technology, as a leader in domestic memory interface chips, is poised to benefit significantly from the AI wave driving the demand for high-speed storage [1]. Earnings Forecast - The earnings forecast remains unchanged, with expected net profits of 2.59 billion yuan, 3.17 billion yuan, and 3.87 billion yuan for 2025, 2026, and 2027 respectively, reflecting year-over-year growth rates of 88%, 23%, and 22% [3]. - The earnings per share (EPS) are projected to be 2.27 yuan, 2.78 yuan, and 3.39 yuan for the same years, with corresponding price-to-earnings ratios of 54, 44, and 36 [3].