Allwinner Technology (300458) was established in 2007 and went public on the Shenzhen Stock Exchange’s Growth Enterprise Market in 2015. Headquartered in Zhuhai, the company focuses on the design of smart application processors SoC, high-performance analog devices, and wireless interconnection chips. Its products cover three core sectors: smart terminals, AIoT, and automotive electronics, widely used in tablets, robots, smart cockpits, and other scenarios, with over 1,200 authorized patents, of which more than 70% are invention patents.1. Main Business: Collaborative Platform Layout Across Multiple Tracks The company has built a diversified business matrix centered on “big video + AI” technology, achieving steady growth across all sectors in the first half of 2025. Smart Terminals: The global market share of the main control chip for tablets is approximately 30%, and the domestic market share of OTT chips exceeds 40%, serving leading clients such as Alibaba, Tencent, and Skyworth. The 12nm process chip has achieved mass production, significantly improving performance and energy efficiency. AIoT: This sector accounts for 42% of the company’s revenue, with the MR536 chip for robotic vacuum cleaners achieving mass production due to its integrated 3T NPU computing power, capturing a dominant market share. The Xiaomi bionic quadruped robot “Iron Egg” also uses its chip; the H135 series smart projection chip and V861 security chip continue to consolidate market advantages.
Automotive Electronics: A key direction for strategic transformation, the automotive-grade chip T527V has passed AEC-Q100 certification and has been implemented in front-mounted projects. The T736 smart cockpit solution is gradually being delivered, entering the trial production phase in front-mounted markets of automotive companies such as BYD and Huawei Jianghuai, with a target of increasing the revenue share of automotive business to 15% by 2025.2. Core Competitive Advantages: Technical Barriers and Strategic Foresight1. “Big Video + AI” Integration Technology: Deeply integrates multi-core heterogeneous computing, ultra-high-definition video processing, and AI computing power at the SoC level, with products featuring both high performance and low power consumption. For example, the AI glasses chip V821 can perform high-definition shooting and AI computing in a very small volume, and the self-developed AIISP noise reduction algorithm can improve low-light imaging quality by four times.2. First-Mover Advantage of RISC-V Architecture: Collaborating with Alibaba’s Pingtouge to achieve commercial mass production of application processors based on RISC-V architecture, forming a product sequence from the D1 chip to the 12nm process A733 chip, occupying a leading position in the open-source chip ecosystem, aligning with the policy direction of domestic substitution.3. Efficient Management and Financial Stability: In the first half of 2025, the sales expense ratio dropped to 1.72%, a year-on-year decrease of 0.54 percentage points; while the R&D expense ratio was 20.57%, the net cash flow from operating activities surged by 279.8% year-on-year to 137 million yuan, with a very low debt-to-asset ratio and ample cash reserves.3. Industry Landscape: Differentiated Competition Among Second-Tier LeadersMarket Positioning: Second-tier global smart terminal processors, top three in the domestic AIoT field, and ranked third in the automotive chip industry operational scoring in Q1 2025, only behind OmniVision and New Clean Energy.
Competitive Landscape: The global market faces pressure from Nvidia and Qualcomm in high-end automotive AI chips, while domestically, it competes directly with Rockchip and Amlogic. Compared to Rockchip’s focus on AIoT and tablet chips, and Amlogic’s deep cultivation in smart TV chips, Allwinner Technology builds a differentiated advantage through multi-scenario coverage and rapid AI algorithm implementation, with automotive chip shipments reaching 20 million units in 2024.Industry Opportunities: Global semiconductor sales are expected to reach $697.2 billion in 2025 (+11%), driven by the wave of edge AI and automotive intelligence, with the company’s multi-track layout precisely aligning with industry trends.4. Financial Performance: High Growth and Profit Improvement Coexist The half-year report for 2025 shows that the company achieved high-quality growth, with a continuously optimized profit structure: Revenue and Profit: In the first half of the year, operating revenue was 1.337 billion yuan, a year-on-year increase of 25.82%; net profit attributable to the parent company was 161 million yuan, with a year-on-year increase of 35.36%, significantly higher than revenue growth. In Q2 2025, single-quarter revenue was 717 million yuan (+9.81%), with net profit attributable to the parent company at 70 million yuan, maintaining stability quarter-on-quarter.Profitability: Gross margin remained stable at 33.03%, a year-on-year increase of 0.16 percentage points; net margin was 12.05%, a significant year-on-year increase of 7.58 percentage points, mainly due to revenue growth diluting period expenses and an increase in the proportion of high-gross-margin products.R&D Investment: In the first half of the year, R&D expenses were 275 million yuan, although the expense ratio decreased by 4.27 percentage points year-on-year, the absolute amount remained high, supporting the iteration of 12nm processes and the development of automotive-grade chips.5. Market Performance and Investment Value Analysis(1) Technical Aspect: Stock Price Fluctuations and Divergent Capital Flows Stock Price Trend: In the past ten days, the stock price has shown wide fluctuations, closing at 48.77 yuan on September 16 and 52.14 yuan on September 25, with a maximum increase of 4.45% during the period, and a total transaction amount of 2.58 billion yuan. On September 23, due to the outflow of main funds, it briefly fell to 49.64 yuan. Capital Flow: On September 23, the net outflow of main funds was 250 million yuan, accounting for 10.1% of the total transaction amount, while retail and individual investors saw net inflows of 37.27 million yuan and 213 million yuan, respectively, indicating a divergence in views on short-term trends among institutions and small investors.(2) Investment Value: Growth Logic and Valuation Risks Coexist Core Highlights: The high market share in the AIoT field provides a performance base, breakthroughs in automotive electronics open up long-term growth space, and the RISC-V architecture layout aligns with industrial policies, while the mass production of 12nm processes further enhances product competitiveness. China Galaxy Securities has thus initiated coverage with a buy rating, believing that downstream demand is gradually warming. Main Risks: The current PE-TTM is 150 times, significantly higher than the industry average of 85 times, with a price-to-sales ratio of 12.35 times, indicating a high valuation premium; the automotive chip market faces competition from international giants, with uncertainties in mass production scale and profit release; if the speed of technological iteration does not meet expectations, it may weaken competitive advantages. Allwinner Technology has achieved dual improvements in performance and profitability in the first half of 2025 through a multi-track layout built on a technological foundation, with breakthroughs in RISC-V and automotive electronics granting it long-term growth potential. However, high valuations and short-term capital divergence suggest that investors should be rational: if subsequent automotive business volume exceeds expectations and the RISC-V ecosystem continues to improve, the company is expected to alleviate valuation pressure; otherwise, caution is needed regarding valuation correction risks. In the long term, it is advisable to closely monitor its automotive chip shipment data and R&D conversion efficiency, while in the short term, attention should be paid to capital flows and changes in valuation cost-effectiveness.
【The stock market has risks, and investment requires caution. This article does not constitute investment advice】