Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future stock performance [5][6]. Core Views - The company is expected to benefit significantly from the increasing penetration of DDR5 memory interfaces and the AI wave, with substantial growth potential in the domestic market for its CPU products [5]. - The forecast for Q2 2025 indicates a strong revenue growth of 15.5% quarter-on-quarter, with non-GAAP net profit reaching a historical high for a single quarter, aligning with expectations [2]. - The company has launched several high-performance AI capacity chips, which are expected to drive revenue growth and improve overall gross margins [4]. Financial Summary - **Revenue Projections**: The company anticipates revenues of 2,286 million CNY in 2023, growing to 10,150 million CNY by 2027, with a year-on-year growth rate of -37.8% in 2023, followed by significant increases of 59.2% in 2024 and 69.1% in 2025 [1]. - **Net Profit Projections**: The projected net profit for 2023 is 451 million CNY, increasing to 4,451 million CNY by 2027, with a year-on-year growth rate of -65.3% in 2023, followed by 213.1% in 2024 and 93.0% in 2025 [1]. - **Key Ratios**: The report highlights a return on equity (ROE) of 4.4% in 2023, expected to rise to 21.0% by 2027, indicating improving profitability [1]. Business Segments - **Interconnect Chips**: This segment is the largest, with Q1 2025 revenue of 11.39 billion CNY, representing 93.2% of total revenue, and is projected to grow by 16% in Q2 2025 [3]. - **High-Performance AI Capacity Chips**: Revenue from this segment is expected to increase by 18% quarter-on-quarter in Q2 2025, contributing significantly to the company's growth [4]. Market Position - The company is positioned as a leader in domestic memory interface chips, with a substantial market opportunity as local manufacturers currently hold a low market share [5].