Soochow Securities Co., Ltd.: Edge AI Cooling Opportunities, Focus on awinic and Southchip for Micro Pump Liquid Cooling

Soochow Securities Co., Ltd. released a research report pointing out that with the surge in demand for computing power, micro-pump liquid cooling active heat dissipation solutions are gradually becoming a trend, expected to be implemented in the fourth quarter of 2025. Awinic and Southchip are making forward-looking layouts in this field and may become major beneficiaries. Compared to traditional passive cooling, micro-pump liquid cooling solutions are expected to improve thermal efficiency by more than three times, and it is anticipated that 2026 will usher in a "year of significant growth."

Awinic: Accelerate the launch of new material numbers for high-performance analog-digital hybrid and power management

Awinic stated at the 2025 semi-annual performance briefing that the company will accelerate the launch of new part numbers for high-performance mixed-signal, power management, and signal chain chips, actively layout in the edge AI application field, and develop multiple edge AI chips. At the same time, the company will expand downstream customer resources and increase the number of new product introduction cases. In the first half of 2025, the company has launched approximately 150 new part numbers, covering consumer electronics, industrial, and automotive fields

A-share semiconductor chip stocks surged in the afternoon, with VeriSilicon and awinic rising over 10%, and CSMT, Centec Communications, Southchip, and Cambricon increasing by more than 5%

Awinic released its semi-annual performance, with a net profit attributable to the parent company of 157 million yuan, a year-on-year increase of 71.09%

Awinic released its semi-annual report for 2025, with revenue of 1.37 billion yuan, a year-on-year decrease of 13.40%; net profit attributable to the parent company was 157 million yuan, a year-on-year increase of 71.09%; and net profit excluding non-recurring items was 123 million yuan, a year-on-year increase of 81.88%. The company promoted profit growth through the layout of high-performance analog-digital hybrid, power management, and signal chain products, with a comprehensive gross margin increase of 8.03 percentage points, a decrease in inventory, and an increase in gains from changes in fair value

Awinic plans to issue convertible bonds to raise no more than 1.901 billion yuan for chip research and production, as well as the construction of a research and development center

Awinic plans to issue convertible bonds to raise no more than 1.901 billion yuan, mainly for the construction of a global research and development center and multiple chip research and development and industrialization projects, including edge AI, automotive chips, and motion control chips