Gelonghui, June 13丨Huaxin Securities's research report on the 12th pointed out that the profitability of Guoxin Technology (688262.SH) is under short-term pressure, and chip customization services have led to a rise in revenue. The company achieved a sharp increase in revenue in 23Q1. Among them, independent chip and module products achieved revenue of 36 million yuan, an increase of 30.33% over the previous year, and chip customization services achieved revenue of 92 million yuan, an increase of 409% over the previous year. The main reason for the increase was that automotive electronics and industrial control applications increased 229% year over year, and edge and advanced computing applications increased 3499% year over year. Demand for automotive electronic chips is strong, and localization substitution is accelerating. The company's automotive electronic chip products cover a full range of products, and have won market recognition and a good reputation in the industry. Furthermore, in the direction of end security chips, the company launched a series of high-performance chips based on market feedback, including the CCM4202S-E and CCM4202S-EL for application scenarios in the fields of smart door locks, digital currency, and the Internet of Things, and the CCM3309S, which optimizes flash features that are more suitable for IoT applications. The IP licensing and chip customization services provided by the company are based on self-developed embedded CPU technology to provide key technical support for secure autonomous control and localization substitution in the three key fields of information security, automotive electronics and industrial control, edge computing and network communication. Since its establishment, the company has adopted the Fabless business model, concentrating superior resources to focus on product development and design, increasing the speed of development of new technologies, which helps improve the company's R&D capabilities. At the same time, it does not require large fixed assets, effectively reducing the financial risks that may occur under the asset-heavy model. For the first time, an “increase in holdings” investment rating was given.