Revenue increased by 59% in 2024, and both revenue and net profit attributable to the parent reached a new quarterly high in 1Q25. In 2024, the company will achieve revenue of 3.639 billion yuan (YoY +59.20%), net profit attributable to the parent company of 1.412 billion yuan (YoY +213%), net profit attributable to the parent company of 1.248 billion yuan (YoY +237%), and gross profit margin decreased by 0.8pct to 58.13%. Among them, the revenue in 4Q24 was 1.068 billion yuan (YoY +40%, QoQ +18%), the net profit attributable to the parent company was 434 million yuan (YoY +100%, QoQ +13%), the net profit attributable to the parent company was 374 million yuan (YoY +75%, QoQ +14%), and the gross profit margin was 58.17% (YoY +0.7pct, QoQ -0.6pct). According to the performance forecast, the company's revenue in 1Q25 was 1.222 billion yuan, a year-on-year increase of 66%; The net profit attributable to the parent company was 510-550 million yuan, a year-on-year increase of 128.28%-146.19%, and the revenue and net profit attributable to the parent company both hit a new quarterly high.

DDR5 penetration has increased and the third generation of RCD chips has been shipped on a large scale in 4Q24. In terms of business, in 2024, the company's interconnection chip revenue will be 3.349 billion yuan (YoY +53.31%), accounting for 92%, and the gross profit margin will increase by 1.30pct to 62.66%; Jindai server platform revenue was 280 million yuan (YoY +199%), accounting for 8%, and the gross profit margin increased by 0.74pct to 4.75%. With the launch of mainstream server and client CPU platforms that support DDR5, the penetration rate of DDR5 memory in the downstream market continues to increase, and its descendants continue to iterate and update. In 2024, the company's DDR5 memory interface chip shipments will exceed DDR4 memory interface chips, the shipments of the second generation RCD chips in the DDR5 internal child generation will exceed the first generation products, the third generation RCD chips will start large-scale shipments in 4Q24, and the fifth generation RCD chips have been successfully sent samples to customers.

In 2024, the revenue of three new products will exceed 400 million yuan, and MXC chips will be included in the first batch of CXL 2.0 compliant supplier lists. Benefiting from the AI industry trend, the company's three new high-performance capacity chip products (PCIe Retimer, MRCD/MDB and CKD) began to be shipped on a large scale, of which the PCIe Retimer chip was applied on a large scale, and MRCD/MDB chips and CKD chips began to be trialed on a large scale, with a total revenue of about 422 million in 2024, 8 times that of 2023, and a total revenue of 135 million in 1Q25, a year-on-year increase of 155%. In January 2025, the company's MXC chip was successfully selected into the first batch of CXL 2.0 compliant supplier list announced by the CXL Alliance, and the memory manufacturers Samsung Electronics and SK hynix were selected at the same time, and their tested products all used the company's MXC chips.

Investment suggestion: the new product is progressing smoothly, maintain the "outperform" rating based on the 1Q25 performance forecast, considering the continuous improvement of DDR5 penetration rate and the volume of new products, we raise the company's 2025-2026 net profit attributable to the parent to 2.150/2.808 billion yuan (the previous value was 1.959/2.637 billion yuan), and the net profit attributable to the parent company in 2027 is expected to be 3.385 billion yuan, corresponding to the PE of the stock price on April 11, 2025 is 40/ 31/25x, maintaining an "outperform" rating.

Risk warning: new product research and development is less than expected; Customer verification is less than expected; Demand fell short of expectations.