Huatai Securities: Maintains a "buy" rating on Ruixin Micro and releases a co-processor to accelerate edge-side AI upgrades.

Huatai Securities research report pointed out that Rockchip recently released its first AI large model co-processor RK1820/RK1828, which has attracted wide attention in the industry. The co-processor is expected to become an important way to accelerate AI upgrades for edge products, and the company's revenue share is expected to gradually increase. In addition, the company has shown a clear product roadmap for industry chain partners, including the next generation flagship chip RK3688 and the next generation co-processor RK1860, providing forward-looking hardware support from a system perspective. According to the company's performance forecast, the net profit margin attributable to shareholders in the second quarter of 2025 has increased to 27.7%. It is expected that this is mainly due to the scale effect and the volume effect of flagship products driving the gross profit margin, and these factors may have a sustained impact on performance in the second half of the year. Therefore, the company's net profit for the years 2025-2027 is raised by 16%/10%/4% to 11/14.42/18.24 billion yuan. The company is given a 69.3x 2025 PE valuation, with the narrowing of valuation premium being mainly due to the need for time for the robot market to volume. The target price of 181.6 yuan and a "buy" rating are maintained.