A research report from Pacific Securities reveals that Xinguodu recorded a revenue of 1.938 billion yuan in the first half of the year, marking a 26.90% year-on-year surge. The net profit attributable to shareholders stood at 271 million yuan, experiencing a slight 1.64% dip from the previous year, mainly attributable to escalating raw material costs and exchange rate fluctuations. In the first half of 2026, Xinguodu acquired a stake in Lingchuan Technology, an AI chip enterprise that emerged from Kuaishou's Heterogeneous Computing and Chip Division. This company is renowned for its seasoned core team. The capital raised in this financing round is earmarked for the R&D of next-generation chips, scaling up production and broadening the scope of existing products, as well as venturing into overseas markets. These strategic moves are anticipated to expedite Xinguodu's shift towards AI. The research report projects Xinguodu's EPS for the years 2026 to 2028 to be 0.96 yuan, 1.14 yuan, and 1.37 yuan, respectively, and reaffirms its 'Buy' recommendation.
