Investment Rating - The report maintains a "Recommended" rating for the company [1] Core Views - The company is strategically positioned in the AIGC sector, with a strong order backlog [1] - In 2024, the company achieved revenue of 2.322 billion yuan, a slight decrease of 0.69% year-on-year, while the net profit attributable to shareholders was -601 million yuan, a significant decrease of 102.68% year-on-year [5][9] - For Q1 2025, the company reported revenue of 390 million yuan, a year-on-year increase of 22.49%, with a net profit of -220 million yuan, a decrease of 6.45% year-on-year [5][10] Financial Performance Summary - Revenue and Profitability: - 2024 revenue: 2.322 billion yuan, down 0.69% YoY - 2024 net profit: -601 million yuan, down 102.68% YoY - 2025 Q1 revenue: 390 million yuan, up 22.49% YoY - 2025 Q1 net profit: -220 million yuan, down 6.45% YoY [5][9][10] - Revenue Growth Projections: - 2025E revenue: 2.955 billion yuan, up 27.3% YoY - 2026E revenue: 3.617 billion yuan, up 22.4% YoY - 2027E revenue: 4.404 billion yuan, up 21.8% YoY [7][12] - Profitability Ratios: - 2024 gross margin: 39.9%, down 4.89 percentage points YoY - 2024 net margin: -25.9%, down 13.20 percentage points YoY - 2025E net margin: -8.9% [9][12] Market Position and Future Outlook - The company has a leading position in the NPU IP market, with its technology adopted in 142 chip designs across 82 clients [10] - The company is benefiting from increased demand in data processing, consumer electronics, and automotive electronics, with respective revenue growth of 75.46%, 64.07%, and 37.32% in these sectors [9][10] - The company is expected to maintain a strong order backlog, with 2.456 billion yuan in orders as of Q1 2025, marking a historical high [10]