Macquarie: Tianshu Zhixin (09903)'s new product cycle is expected to receive CSP customer response and maintain a “outperforming the market” rating

The Zhitong Finance App learned that Macquarie released a research report stating that it maintains the Tianshu Zhixin (09903) “outperforms the market” rating and target price of HK$1,060 because the company has already entered Chinese cloud service provider (CSP) customers, and the contribution of next-generation general-purpose graphics processor (GPGPU) chips is expected to gradually increase. Tianshu Zhixin management recently met with investors.

The bank pointed out that in the first half of this year, the gross margins of the company's core “Tianyu” training chips and “Smart Armor” inference chips remained at 64.5% and 35.6% respectively. R&D expenses in the first half of the year increased 24% year over year to 559 million yuan, accounting for 59% of total revenue; inventory increased 1.8 times from half a year ago to 2 billion yuan, and advance payments are estimated to exceed 900 million yuan, up 60% from half a year ago. The bank believes that following the launch of the “Tianyi-300” new training GPGPU chip in July, mass production can begin as early as the fourth quarter of this year. With strong computing power, die-to-die interconnection and higher average product sales prices, it is expected to contribute significantly next year; management is also planning to launch a next-generation supernode solution in the fourth quarter, and the profit margin should be good. The bank is confident about the company's mid-term prospects for CSP and big language model customers.