The Zhitong Finance App learned that Goldman Sachs released a research report stating that it maintains the “buy” rating of Lanqi Technology (06809,688008.SH), with a 12-month target price of 377 yuan for Lanqi A shares and HK$500 for H shares.
The company announced preliminary results for the third quarter, with revenue of about RMB 2.08 billion, up 46% year on year and up 11% from quarter to quarter, in line with the forecast and 1% higher than Bloomberg market expectations; the company expects net profit for the third quarter to be between 1.2 billion yuan and 1.3 billion yuan, up 154% to 175% year on year and 4% to 13% from quarter to quarter, which means that the median increase of 9% quarterly, 30% and 47% higher than the bank's and market expectations, respectively.
According to the bank, strong growth was driven by the rapid development of AI inference and agent applications, leading to a rise in demand for server CPUs, supporting the demand for memory modules and interconnect chips. The revenue of the interconnect chip product line is expected to be about 2.05 billion yuan, up 49% year on year and 21% quarterly, generally continuing the trend of 20% quarterly increase in the second quarter; gross margin is expected to reach 68% to 68.5%, an improvement of 0.6 to 1.1 percentage points from 67.4% in the second quarter. Management expects demand for interconnect chips to increase further in the fourth quarter, supported by continued growth in demand for server CPUs and memory, as well as increased contributions from next-generation DDR5 RCD products.