Dongwu Securities: Maintains a "buy" rating on Zhongsheng Micro, and the RF full-stack layout continues to be realized.

Dongwu Securities research report pointed out that Zhuosheng Microchip has built a core barrier with its production line, and its RF full-stack layout continues to deliver. Starting from 2026, the company's high-end L-PAMiD module will officially enter a volume cycle, breaking the long-term monopoly of overseas manufacturers. This product is the first in the industry to achieve a national supply chain for a series of products, and with the overseas leading enterprises exiting the Chinese market and geopolitical frictions accelerating domestic substitution, the company is expected to capture market share and drive the product to achieve several times growth. RF layout optimization, module mass production, and silicon photonics advancement are mutually reinforcing performance and valuation. The company deeply benefits from the share migration caused by the exit of overseas giants. Based on calculations, the proportion of RF module revenue is expected to increase to 60% by 2028, with silicon photonics business gradually contributing to revenue and the growth structure of consumer electronics and optical communications becoming apparent. It is expected that the operating income for 2026-2028 will be 4.096/5.001/6.183 billion yuan, with net profit attributable to the parent company of -0.03/2.62/4.87 billion yuan. The corresponding PE ratios for 2027-2028 are 233/125 times respectively. The "buy" rating is maintained.