VeriSilicon(SH:688521)2025-09-07 16:19Summary of VeriSilicon Conference Call Company Overview - Company: VeriSilicon (688521.SS) - Industry: Semiconductor, specifically focusing on AI ASIC solutions and semiconductor IP products Key Points Order Momentum and Growth - Strong order momentum is evident, with orders on hand reaching Rmb3 billion, reflecting a 33% YoY and 23% QoQ increase, driven by AI ASIC design services and production management orders [4] - Over 80% of these orders are expected to convert to revenue within one year, supporting sequential growth [4] - The company has 100+ design projects on hand, indicating growing demand from AI computing projects [4] AI ASIC Projects - Management is optimistic about the growth of AI/ASIC solutions, particularly for cloud and edge devices, including AI/AR glasses, AI smartphones, AI Pads, and AI toys [4] - The trend towards localization of AI chips is expected to benefit the company [4] - Private placement funding is being utilized to accelerate new product development in ASIC IP and GPU IP [4] Semiconductor IP Coverage - VeriSilicon has a comprehensive semiconductor IP coverage, including GPU IP, NPU IP, VPU IP, DSP IP, Display IP, and over 1,600 analog/mixed signal IP and RF IP [4] - In-house IP products are designed to optimize chip size, bandwidth, and performance, saving clients time and costs [4] Financial Projections - The 12-month price target for VeriSilicon is set at Rmb193, representing a 26.1% upside from the current price of Rmb153 [7] - Revenue projections for the next few years are as follows: - 2024: Rmb2,321.9 million - 2025E: Rmb3,025.6 million - 2026E: Rmb4,951.9 million - 2027E: Rmb6,526.3 million [7] Risks - Potential risks include: 1. Slower-than-expected technology development [6] 2. Higher-than-expected costs for talent acquisition and retention [6] 3. Weaker-than-expected customer spending on IP and new chipset projects [6] Conclusion - Overall, management remains positive about the rising demand for AI solutions and the company's ability to capitalize on this trend through its AI ASIC turnkey solutions and extensive semiconductor IP offerings [4]