Investment Rating - The report maintains a "Buy" rating for the company [3][5] Core Insights - The company has shown steady growth in revenue and net profit for the first three quarters of 2025, driven by a continuous focus on high-value-added products and an expanding range of downstream applications [3][8] - The company is expected to achieve revenues of RMB 1.374 billion, RMB 1.771 billion, and RMB 2.267 billion for the years 2025, 2026, and 2027 respectively, with corresponding net profits of RMB 454 million, RMB 632 million, and RMB 836 million [5][7] Financial Performance Summary - For the first three quarters of 2025, the company reported revenue of RMB 933 million, a year-on-year increase of 21.29%, and a net profit of RMB 320 million, up 51.33% year-on-year [8] - The gross margin for the first three quarters of 2025 was 59.78%, an increase of 4.93 percentage points year-on-year [8] - The company’s quarterly performance in Q3 2025 included revenue of RMB 358 million, a year-on-year increase of 40.7%, and a net profit of RMB 115 million, up 67.69% year-on-year [8] Growth Drivers - The company has successfully increased shipments of DDR5 SPD chips, automotive-grade EEPROM chips, and high-performance industrial-grade EEPROM chips, which have contributed to its growth [8] - The introduction of automotive-grade NOR Flash chips to leading automotive electronics Tier 1 suppliers and the deployment of optical image stabilization (OIS) motor driver chips in mainstream smartphone brands have mitigated the impact of fluctuations in consumer electronics demand [8] - The company is strategically positioned in the AI sector, with its SPD chips being essential components in server memory modules, and its WLCSP EEPROM chips being widely adopted in AI glasses [8]

Core Insights - The company has made significant progress in automotive electronics and industrial equipment, addressing investor concerns about business structure and product upgrades [1][2] - The revenue from automotive-grade storage chips has exceeded 10% of total revenue, indicating successful product structure optimization [1] Group 1: Business Performance - The company has successfully leveraged opportunities in AI integration into smart terminal devices, with WLCSP EEPROM chips being widely adopted in major AI eyewear products [1] - Sales and revenue of automotive-grade storage chips and high-performance industrial-grade storage chips have experienced rapid growth compared to the same period last year [1] Group 2: R&D Investment - In the first half of 2025, the company invested 103 million yuan in R&D, with Q2 investment reaching 62 million yuan, a more than 50% increase quarter-on-quarter, marking the highest level for the same period historically [2] - The R&D investments have led to tangible market results, including the successful integration of automotive-grade NOR Flash chips in mainstream automotive visual perception and smart cockpit systems [2] Group 3: Future Strategy - The company plans to develop next-generation storage chips with improved performance, lower power consumption, and higher reliability, adapting to market changes and new technology trends [2] - The company aims to enhance its product layout through both internal development and external acquisitions, ensuring a balanced and risk-resistant business structure for sustainable long-term growth [2]