According to Zhitong Finance APP, Gf Securities Co.,Ltd. released a research report stating that in the era of AI advancement, the Scaling-law three-wheel drive is propelling rapid global development of AI models and AI applications. AI inference demand is accelerating, AI PCB is flourishing, and AIODM and interconnect chips continue to grow. Domestic AI maintains continuous innovation breakthroughs, with dual development in cluster and local deployment, driving sustained growth in the domestic AI industry chain. The firm recommends focusing on overseas AI and domestic AI industry chain related targets.

Edge-side AI is blooming in various forms, with AI glasses emerging as a promising new terminal. Automotive intelligence is accelerating, with automotive CIS and EEPROM market scales expanding. Niche storage prices are rising, and 3D stacked DRAM is expected to open application spaces in both cloud and edge sides. The firm suggests paying attention to edge-side AI industry chain related targets.

Gf Securities' main viewpoints are as follows:

Electronics Industry: Industry maintains high prosperity, with 25Q2 revenue and profit growing both year-over-year and quarter-over-quarter

According to Wind data, in 25H1, the electronics industry (using SW and CTI electronics industry indices) achieved overall revenue growth of 10% year-over-year, with net profit attributable to parent companies growing 20% year-over-year. On a quarterly basis, 25Q2 electronics industry overall revenue grew 11% year-over-year and 13% quarter-over-quarter, while overall net profit attributable to parent companies increased 20% year-over-year and 38% quarter-over-quarter. Overall, the electronics industry maintained good prosperity in 25H1, with both revenue and profit showing year-over-year growth, and the medium to long-term overall trend remaining positive.

Consumer Electronics: Industry prosperity trending upward with continuous growth in operating indicators

In terms of revenue, 25Q2 consumer electronics segment operating revenue grew 14% year-over-year and 12% quarter-over-quarter. 25H1 consumer electronics segment revenue increased 11% year-over-year. Regarding profits, 25Q2 consumer electronics segment net profit attributable to parent companies grew 16% year-over-year and 25% quarter-over-quarter, while 25H1 consumer electronics segment net profit attributable to parent companies increased 8% year-over-year. Driven by policy subsidies, the 25H1 consumer electronics segment achieved steady growth in both revenue and profit. Looking ahead to 25H2, the industry will enter the traditional peak sales season, combined with accelerated penetration of new-generation smart terminals such as AI phones and AI glasses, which is expected to drive continued improvement in industry demand.

Semiconductors: Profit improvement significantly quarter-over-quarter, with positive medium to long-term trends

In terms of revenue, 25H1 semiconductor industry overall revenue grew 10% year-over-year. 25Q2 semiconductor segment revenue increased 10% year-over-year and 16% quarter-over-quarter, achieving year-over-year growth for 10 consecutive quarters. Regarding profits, 25H1 semiconductor industry overall net profit attributable to parent companies grew 14% year-over-year. 25Q2 semiconductor segment net profit attributable to parent companies increased 14% year-over-year and 66% quarter-over-quarter.

In terms of profitability, 25H1 semiconductor segment gross margin was 25.4%, up 0.9 percentage points year-over-year, with net profit margin attributable to parent companies at 6.6%, up 0.2 percentage points year-over-year. 25Q2 semiconductor segment gross margin reached 25.9%, up 0.9 percentage points year-over-year and 1.1 percentage points quarter-over-quarter, while net profit margin attributable to parent companies was 7.7%, up 0.3 percentage points year-over-year and 2.3 percentage points quarter-over-quarter.

From an asset turnover perspective, 25Q2 semiconductor segment inventory turnover days, accounts payable turnover days, and accounts receivable turnover days all decreased quarter-over-quarter, with the 25Q2 semiconductor segment achieving comprehensive improvement in asset turnover efficiency. As the AI wave drives continuous innovation on both cloud and edge sides, operating conditions across various segments continue to improve, and profitability across the semiconductor industry chain is expected to further enhance.

Risk Warning: Risk of downstream demand falling short of expectations, risk of new product development falling short of expectations, intensified industry competition.