Event: On May 21, Qualcomm released the Snapdragon Development Kit for Windows — a small PC powered by Snapdragon X Elite, designed to enable developers to create or optimize apps and experiences for the next generation of AI PCs1. According to the official account of Zhongke Chuangda, Chuangtong Lianda provided a one-stop service from design to production for the Snapdragon development kit, and released a variety of end-to-end intelligent application services to enable AIPC development.
On the hardware side, it collaborates with Qualcomm to help develop the next AIPC: The Snapdragon Development Kit for Windows is a small PC equipped with Snapdragon X Elite. It has 4.6 TFLOP GPU performance, is equipped with 32GB LPDDR5x memory and 512GB storage capacity, supports wireless connections such as Wi-Fi 7 and Bluetooth 5.4, and has rich port configurations, and can support up to 3 4K screens at the same time. The development kit allows developers to use a powerful 12-core Qualcomm Oryon CPU and an NPU with up to 45 TOPS computing power to build future AI applications, and quickly adapt and recompile Windows applications to version 2 natively suitable for the Snapdragon platform.
On the software side, actively expand end-side intelligent applications to enable AIPC development: 1) Rubik's Cube Toolbox: It is an AI app launcher that provides services based on several large local models deployed by this Snapdragon development kit, and also has the ability to call large local models and large cloud models. The toolbox includes four core applications: local assistant, email assistant, conference agent, and AR smart food, to provide PC users with convenient end-to-end intelligent services. 2) Rubik's Cube Coding Assistant: It can be seamlessly embedded in software development scenarios to provide developers with functional services such as code completion, code generation, code optimization, and technical question and answer, which can greatly improve programming efficiency and code quality, and bring developers a more convenient and efficient development experience. 3) Magic Legal Assistant: An exclusive personal AI legal advisor based on the big legal model. On May 30, the end-side intelligent application officially connected seamlessly with Lenovo AI PC personal intelligence “Lenovo Xiaotian”. Both individuals and enterprises can use “Lenovo Xiaotian” to use Magic Legal Assistant to obtain immediate legal question answering services and professional legal support. We believe that the company has rich technology and product reserves in the field of end-side AI, and is expected to continue to benefit from the rapid development of the wave of end-side intelligence3.
The repurchase cancellation shows the company's long-term development confidence: On May 25, the company issued the “Notice on Changing the Use and Cancellation of Shares Repurchase”, which proposes to change the use of 808,400 shares in the repurchase account from “for employee stock ownership plans or equity incentives” to “for cancellation and corresponding reduction in total registered capital”. In March 2024, the company implemented and completed the repurchase plan, totaling 808,400 shares, accounting for 0.18% of the company's total share capital. The transaction price was 52.14-87.38 yuan/share. For 49,9851 million yuan. We believe that the cancellation of this repurchase shows the company's confidence in future development and high recognition of the company's value, which is conducive to maintaining the stability of the capital market and safeguarding investors' interests.
Profit forecast and investment rating: The company's net profit for 2024-2026 is expected to be 6.51/8.47/1,131 billion yuan respectively, and the current stock price is 38/29/22 times PE, respectively. We believe that the company is actively promoting the upgrading of the end-side intelligence strategy, launching various products and applications such as smart car end-side solutions and AIPC products, and is expected to benefit from the long-term sustainable development of the intelligent wave. After the strategic transformation in 2023, the company is expected to enter the return on investment period and maintain this year.” “Buy” rating.
Risk warning: Customer growth falls short of expectations, downstream demand falls short of expectations, risk of fluctuations in raw material prices, risk of macroeconomic fluctuations.