Guotai Haitong: Initiate AXERA (00600) with "Buy" rating, smart cars to open up growth space.

Guotai Haitong released a research report stating that they are initiating coverage on AXERA (00600) with a "hold" rating. AXERA is a scarce AI inference SoC platform company in China, focusing on terminal computing, smart cars, and edge AI inference. Its core competitive advantage lies in its self-developed hybrid precision NPU and AI-ISP dual technology base, as well as the IP reuse and multi-product line expansion capabilities brought by platform-based chip design. It is expected that the company's operating income for 2026-2028 will be 830 million, 1.347 billion, and 2.131 billion yuan respectively, with net profit attributable to the parent company being -730 million, -615 million, and -370 million yuan respectively, and EPS being -1.24, -1.04, and -0.63 yuan respectively. Using the PS valuation method, Horizen Siasun Robot & Automation, BLACK SESAME, Rockchip Electronics, and SigmaStar Technology were selected as comparable companies, with the first two being large SoC chip companies for cars, and the latter two being SoC chip companies. The average PS ratio for comparable companies in 2027 is 7.2 times. Considering that the company's smart car business is about to enter a phase of large-scale production, a certain premium is given, with a 2027 PS of 8 times, corresponding to a fair valuation of 10.776 billion yuan, with a target price of 21.05 yuan. Guotai Haitong's main points are as follows: - A platform-type AI inference SoC manufacturer, positioning itself in the core link of "cloud-edge-end" coordinated evolution - By deploying computational power closer to the data source in the "edge" and "end" through its self-developed NPU and AI-ISP technology platform. In terms of industry position, based on the 2024 shipment volume, the company is the world's fifth-largest visual edge AI inference chip provider with a market share of 6.80%; in China's edge AI inference chip market, it ranks third with a market share of 12.20%. The company's computation product revenue for 2025 is 468 million yuan, a year-on-year growth of 5%; smart edge product revenue is 44 million yuan, a year-on-year growth of 135%; smart car electronic product revenue is 48 million yuan, a year-on-year growth of 618%, a substantial increase. - Three major business lines are advancing synergistically, opening up incremental space for smart cars - In the smart car sector, M55H has entered mass production and deployment in multiple OEMs, M57 has successfully returned and has been designated by multiple top OEMs, M76H is already commercialized; M97 high-end intelligent driving chip production started in Q3 of 2026, marking the company's extension into the high-end intelligent driving platform. - The positioning of automotive SoC chips is evident, deeply benefiting from the growth trend of smart cars - The company plans to use 60% of the net proceeds from the IPO for optimizing existing technology platforms and 15% for cutting-edge technology research and development. Risk warning: New product volume falls below expectations; high customer concentration; macroeconomic environment risks.