Focus on the field of artificial intelligence chips and focus on R&D to build a moat. The Cambrian Comprehensive System has mastered the core technology for the development and commercialization of general-purpose smart chips and their basic system software. In 2023, the company relied on the core advantages of artificial intelligence chip products to expand computing power infrastructure projects, deeply cultivate industry customers, achieve revenue of 709 million yuan, a year-on-year decrease of 2.70%; achieved net profit to mother - 848 million yuan, narrowing the year-on-year loss. 2024Q1 achieved revenue of 0.26 million yuan and net profit to mother of 227 million yuan. The company focuses on the core circuit of AI chips with high computing power in the cloud, continuously promotes product iteration, and strengthens technical barriers. The company issued an equity incentive plan. The assessment target value is not less than 1.1 billion yuan in revenue for 24, the cumulative revenue value for 24-25 is not less than 2.6 billion yuan, and the cumulative operating income value for 24-26 is not less than 4.6 billion yuan.
The global AI chip space is vast, and US sanctions are expected to continue to increase China's share of AI chips. The arms race for computing power continues, and AMD sees the AI chip market size of 400 billion US dollars in '27. Nvidia has announced its roadmap for the next 3 years, and Blackwell has begun production. The US government issued a ban on Nvidia, and the sanctions continued to increase, benefiting domestic GPU manufacturers. Downstream demand has increased, with the intelligent computing power of the Government Intelligent Computing Center exceeding 105 EFLOPS in 2025; operators are investing in “computing power networks”; and the demand for computing power for training large Internet models has exploded.
The Cambrian era has deep roots in the field of AI chips. (1) Cloud smart chip: Used in various cloud servers or data centers in the form of Siyuan chips or acceleration cards. (2) Basic system software technology: The basic system software Cambricon Neuware developed by the company on its own smart chip products can support various mainstream artificial intelligence programming frameworks, including TensorFlow, PyTorch, etc. The company developed its own smart chip programming language BANG language, and developed a smart chip compiler that can compile programs written in BANG language into smart chip underlying instruction set (MLU instruction set) machine code.
Cloud-side integration works together, and the product matrix is gradually improving. The company is based in the field of high computing power, leading AI chip technology in China, comprehensive layout of training and inference products, and collaborative efforts in the cloud edge field. In 2023, the company's smart chips and accelerator cards continued to be implemented in various key industries such as the Internet, operators, finance, and energy, and made great progress in the cutting-edge field of large models in the industry, as well as in the fields of search and advertising recommendations. In 2023, the company's smart chips and accelerator cards achieved revenue of 101 million yuan.
Profit forecasting, valuation and ratings: Cambrian is a leading domestic AI chip company. In the current context of the rise of AIGC and big models, the company has a broad business space. We maintain our 2024-2025 revenue forecast of 1,794 billion yuan and 2,697 million yuan, add the 2026 revenue forecast to 3.319 billion yuan, maintain the 2024-2025 net profit forecast of -297 million yuan and -77 million yuan, and add the 2026 net profit forecast of 236 million yuan. Considering the difficulty of AI chip design and future development space, the company is a leading domestic AI chip. It has a high scarcity and first-mover advantage, and maintains an “gain” rating.
Risk warning: Risk of R&D work falling short of expectations, risk of AI application promotion falling short of expectations, risk of continuous operation due to continuous loss, risk of high customer concentration.