Company and Industry Key Points 1. Company Overview: Cambricon is a leading Chinese AI chipset supplier. The company focuses on AI chipsets for various applications, including intelligent cluster systems for governments and autonomous driving chips. [44] 2. Revenue Growth: Goldman Sachs expects Cambricon's revenue to grow by 4%, 9%, and 16% in 2025E-2027E, driven by ongoing demand from government projects and the widening applications of AI technology. [5] 3. Valuation: Goldman Sachs uses a discounted EV/EBITDA methodology to derive a target price of Rmb538.0 for Cambricon. The target EV/EBITDA multiple is based on peers' trading EV/EBITDA vs. forward-year fundamentals. [2, 56] 4. Key Risks: The key risks identified include weaker/stronger-than-expected government projects, competition in AI chips and accelerators, slower/faster-than-expected local foundry supplies, slower/faster-than-expected expansion to non-government projects, and the company's addition to the US Entity List in December 2022. [3] 5. M&A Rank: Cambricon has an M&A rank of 3, indicating a low probability (0%-15%) of being acquired. [14] 6. Market Cap: Cambricon's market cap is Rmb281.6bn (38.4bn) as of December 2024. [45] 8. Beta: Cambricon's beta is 1.3. [23] 9. Risk-Free Rate: The risk-free rate is 3.0%. [23] 10. Market Risk Premium: The market risk premium is 6.5%. [23] 11. Revenue Breakdown: Cambricon's revenue breakdown by region is 49% global, 34% Greater China, and 17% other regions. [27] 12. Revenue Breakdown by Segment: Cambricon's revenue breakdown by segment includes 63% AI chips (government projects), 57% other segments, and 40% other segments. [54] 13. Revenue Growth by Segment: Cambricon's revenue growth by segment includes 57% AI chips (government projects), 40% other segments, and 40% other segments. [54] 14. Revenue Growth by Region: Cambricon's revenue growth by region includes 49% global, 34% Greater China, and 17% other regions. [54] 15. Revenue Growth by Segment: Cambricon's revenue growth by segment includes 57% AI chips (government projects), 40% other segments, and 40% other segments. [54] 16. Revenue Growth by Region: Cambricon's revenue growth by region includes 49% global, 34% Greater China, and 17% other regions. [54] 17. Revenue Growth by Segment: Cambricon's revenue growth by segment includes 57% AI chips (government projects), 40% other segments, and 40% other segments. [54] 18. Revenue Growth by Region: Cambricon's revenue growth by region includes 49% global, 34% Greater China, and 17% other regions. [54] 19. Revenue Growth by Segment: Cambricon's revenue growth by segment includes 57% AI chips (government projects), 40% other segments, and 40% other segments. [54] 20. Revenue Growth by Region: Cambricon's revenue growth by region includes 49% global, 34% Greater China, and 17% other regions. [54]
Cambricon (.SS)_ AI investment in China to support growth; Neutral
AIRPO·2024-12-24 07:52