The company is the world's leading provider of intelligent operating systems and technology. Since its establishment in 2008, the company has focused on developing the underlying technology and application technology of intelligent operating systems such as Linux, Android, RTOS, and Hongmeng, with intelligent operating system technology as the core. The company adheres to the “technology+ecology” platform development strategy and gradually expands its business horizontally through “endogenous+outreach”. Currently, the company's main business covers the three major fields of intelligent software, intelligent connected vehicles, and intelligent Internet of Things.
End-side AI is rapidly developing, and global manufacturers are embracing AI PCs. Thanks to the continuous reduction in the size of large AI models and the rapid decline in inference costs, end-side AI has ushered in rapid development this year. The world's leading manufacturers have begun to deploy one after another, and the product that has received the core attention is AI PC. Microsoft proposed the CoPilot+PC solution at the Build Conference. Using Qualcomm Snapdragon X Elite chips, they switched from x86 architecture to Arm, integrating AI capabilities into the PC experience from hardware to software levels. Afterwards, at the CompuTeX 2024 conference, AMD, Intel, Qualcomm, Arm and other manufacturers gave keynote speeches, launched their AI PC chips and displayed the layout of end-side AI. Arm expects over 100 billion Arm devices to be used for AI by the end of 2025.
The company has a long-term layout of end-side intelligence. Relying on strong operating system technology and localization service capabilities, the company has built an integrated and full-scenario solution for distributed end, edge, and cloud OS with IoT OS as the core. It has many years of development experience at the end side scenario, device, and operating system levels, which supports the rapid development of the company's intelligent IoT business.
In-depth cooperation with Qualcomm, card ecosystem and technical advantages. The company has formed a strategic partnership with Qualcomm since its inception, and has maintained a close cooperative relationship. Recently, it has provided a one-stop service from design to production for the Qualcomm Snapdragon X Elite development kit, and has a first-mover advantage in the future Win on Arm ecosystem. At the same time, the company itself is also actively deploying in the field of end-side AI. It already has products such as end-side digital people, AI PC intelligent legal assistants, AI PC Rubik's Cube toolbox, etc., and has rich experience in end-side AI development. In the future, the company will continue to strategically develop the second growth curve (existing business+end side intelligence) and the third growth curve (end side intelligence+innovative business) to continuously explore the needs of end side AI application scenarios. With the accelerated implementation of end-side AI, the company is expected to usher in rapid development in the field of end-side intelligence.
Taking into account factors such as the macroeconomic environment and the large investment brought about by AI development, the company's earnings per share for 24-26 were reduced to 1.21/1.55/1.86 yuan (the original forecast was 1.35/1.93/2.46 yuan). According to the valuation level of comparable companies, the company was given a price-earnings ratio of 46 times in 2025, corresponding to a reasonable stock price of 71.30 yuan, maintaining the purchase rating.
Risk warning
AI PC implementation falls short of expectations, intelligent automotive implementation falls short of expectations, smart IoT business expansion falls short of expectations, and other benefits account for a relatively high risk