Open Source Securities: Grant a Buy rating to Longqi Technology

China Open Securities Co., Ltd. Chen Rongfang, Zhang Weizhen, Liu Qi have recently conducted research on Longqi Technology and issued a research report titled “Company Information Update Report: 2025 Profit Margins Significantly Repaired, Breakthrough Growth in New Businesses Such as Smart Glasses,” granting Longqi Technology a “Buy” rating.

Longqi Technology (603341)

2025 Profit Returns to Growth, Maintain the “Buy” Rating

In 2025, the company achieved full-year operating revenue of 42.125 billion yuan, yoy-9.18%, and attributable net profit of 0.585 billion yuan, yoy+16.76%. Full-year gross margin was 8.78%, yoy+2.70pct; net profit margin was 1.40%, yoy+0.33pct. Gross margin improved significantly, and profits grew against the trend. In a single Q4, the company achieved revenue of 10.793 billion yuan, yoy-5.83%, qoq-5.52%; attributable net profit of 0.078 billion yuan, yoy-10.77%, qoq-48.68%; gross margin of 9.33%, yoy+3.28pct, qoq-0.05pct; and net profit margin of 0.68%, yoy+0.09pct, qoq-0.71pct. The sequential decline in 2025Q4 profit was mainly due to the expense side; gross margin was basically stable sequentially. Based on industry shipment volume expectations, we reduce the company’s profit forecasts for 2026 and 2027, add a profit forecast for 2028, and expect attributable net profits of 7.41/11.69/16.48 billion yuan for 2026-2028 (original values were 9.04/12.73 billion yuan), with EPS of 1.42/2.24/3.15 yuan. The current share price corresponds to PE of 26.6/16.9/12.0x. Maintain the “Buy” rating.

Business Structure: Product Structure Keeps Optimizing, Flat Panel and AIoT Business Grow Significantly

By business structure, in 2025 the company’s smart phone/tablet/AIoT businesses achieved revenue of 28.935/4.153/7.869 billion yuan, respectively, with revenue mix of 68.69%/9.86%/18.68%. The share of high-gross-margin products such as tablets and AIoT increased. In the smart phone business, while keeping entry-level model shipment volumes stable, the company accelerated upgrades toward mid-to-high-end product lines, and overseas project expansion proceeded smoothly. In the tablet business, product tiers continued to rise, technical accumulation was deepened, and AI application as well as integrated software-and-hardware capabilities were comprehensively enhanced. In the AIoT business, leveraging opportunities from AI industry development, the smart glasses business achieved leapfrog growth.

New Business Expansion: Multiple Breakthroughs Across AIPC, Smart Glasses, Robots, Automotive Electronics, and More AI PC achieved full-platform product design and mass production implementation, securing orders from multiple mainstream customers including global top-tier customers; the smart glasses SIP business has officially launched, enabling a breakthrough from 0 to 1 in the end-to-end system business, and the overseas market successfully expanded the children’s smart glasses business; the robot business’ innovative applications in smart factories are being steadily advanced; the automotive electronics business achieved million-unit level shipments, successfully broke through the bottleneck in high-power heat dissipation technology, and entered the supply chain of global mainstream automakers. The in-vehicle intelligent control tablet business successfully received strategic model designations from multiple mainstream automakers and completed delivery smoothly. Risk Warning: Downstream demand is not favorable; intensified competition affects profitability; risk of fluctuations in raw material prices.

Latest profit forecast details are as follows:

Within the past 90 days, this stock received ratings from 1 institution in total, with 1 “Buy” rating.

The above content is organized by Securities Star based on publicly available information and generated by an AI algorithm (filing/supervision record No. 310104345710301240019). It does not constitute investment advice.