Linyang Technology: Edge AI technology breakthroughs drive strong stock price increases

Linyang's stock price hits a new high with six consecutive pumps.

Linyang Technology (2401) had a remarkable stock price performance today (21st), hitting the limit up within half an hour of opening, with an increase of 2.25, locking in at 25.15, achieving a commendable record of six consecutive trading days of gains. Despite the Taiwan Weighted Index dropping over 700 points yesterday, Linyang still rose against the trend, directly hitting the limit up today, with trading volume soaring to 51,605 shares, demonstrating strong momentum.

Recently, the stock performance of Lingyang has far outperformed the market, with a 4.77% increase over the past 5 days, compared to the 0.81% increase in the weighted index of the concentrated market, making its performance particularly outstanding. This strong upward trend is mainly attributed to the company's layout in the Edge AI (Edge Artificial Intelligence) field, which has received high recognition from the market.

In-Depth Analysis of Edge AI Technology Layout

On the 19th, Chairman Huang Zhoujie of Linyang revealed during the earnings conference that the new generation C5 system-on-chip (SoC) will have its design finalized (Tape out) by mid-next year and is planned to enter the mass production phase by the end of next year. This new chip is primarily aimed at the following Edge AI application markets:

1. Sweeping Robot
2. Long-term Care Monitoring System
3. Drone
4. Drone
5. Autonomous Robot

In recent years, the Rising Electronics Group has been fully committed to the Edge AI field, with clearly defined roles for its subsidiaries:

• Lingyang Innovation: Focused on high-end AI image processor chip HPD development
• Lingtong: Committed to adding value to products through AI algorithms
• The core of Lingyang: Focused on AI chip development, such as the first generation C3 chip which has been applied in logistics handling systems, currently actively developing the second generation C5 chip.

C5 chip technology breakthrough

The new generation C5 chip uses a 12-nanometer process, significantly enhancing AI capabilities based on the C3.

Product Structure and Market Layout Analysis

The four major product lines of Lingyang and their revenue share:

1. Automotive (50%)
2. Audio (30%)
3. IP
4. DVD

Deepening the Automotive Market

• The products cover intelligent cockpits, ADAS, and in-car acoustic systems.
• Technology expands to two-wheeled vehicle smart dashboards, achieving mobile connection navigation functionality.
• Connect with the helmet via Wi-Fi and Bluetooth to enhance the riding experience

Innovation in the Audio Field

• Solutions widely applied in Soundbars and gaming devices
• Simulate theater sound effects through advanced algorithms and support wireless connectivity.
• The new generation chip with additional Bluetooth functionality has received global customer recognition.

Strategies for Responding to the International Trade Environment

Assessment of the Impact of U.S. Tariffs

• Automotive products are mainly shipped to the aftermarket, with customers mostly producing in Chinese factories and exporting to the United States.
• During the last tariff adjustment, capacity transfer had already begun, and currently only a few factories are still in the process of transferring.
• The estimated impact of tariffs on overall performance is less than 10%.
• The deferred orders from the first half of the year will gradually return starting in August, leading to an optimistic outlook for operations in the second half of the year.

Audio Product Advantages Analysis

• Priced in US dollars, most semiconductor items receive tariff exemptions, with limited impact from exchange rates and tariffs.
• The main customer production bases have moved to Vietnam and Malaysia.
• The new generation of chips with additional Bluetooth functionality has gained global customer recognition and is expected to contribute positively to future performance.

The technological advancements and market strategies announced by Ling Yang at the legal seminar have clearly garnered the favor of investors. In the face of a significant market downturn, it rose against the trend, and today it directly gapped up to reach the upper limit, with trading volume significantly increasing, reflecting the market's confidence in its Edge AI layout.