[Shanxi Securities] Early Research Insights

Log in to the Sina Finance app and search for 【information disclosure】 to view more evaluation tiers

Key Points Today

●【Company Commentary】Broadcom (002410.SZ): Broadcom (002410.SZ): Profitability improves significantly, with full-scale deployment of AI products

【Company Commentary】Broadcom (002410.SZ): Broadcom (002410.SZ): Profitability improves significantly, with full-scale deployment of AI products

Gai Binhe gaibinhe@sxzq.com

【Investment Highlights】

Event Description

On March 23, the company released its 2025 annual report. During 2025, the company achieved revenue of RMB 6.1B, down 2.28% year over year; attributable to parent net profit was RMB 405 million, up 61.77% year over year; and non-recurring profit net profit was RMB 348 million, up 99.68% year over year. In the 2025 fourth quarter, the company achieved revenue of RMB 1.8B, down 2.20% year over year; attributable to parent net profit was RMB 94 million, up 152.87% year over year; and non-recurring profit net profit was RMB 72 million, up 782.95% year over year.

Event Review

Full-year revenue faced some pressure, while gross margin improvement combined with expense control drove net profit release. Affected by the construction industry downstream being in a structural adjustment period, the company’s revenue in 2025 still experienced some pressure. In 2025, the company’s gross margin was 85.88%, up 1.55 percentage points from the same period last year. On the expense side, as the company strengthened refined management, the management expense ratio in 2025 was 19.35%, down 2.35 percentage points from the same period last year; benefiting from the company’s business focus, the company’s R&D expense ratio was 27.54%, down 0.98 percentage points from the same period last year, driven by reductions in personnel costs, consulting and service expenses, and others. The sales expense ratio remained basically stable, up 0.66 percentage points from the same period last year. Meanwhile, driven by gross margin improvement and expense control, the company’s net profit margin in 2025 reached 7.27%, up 2.91 percentage points from the same period last year.

The digital cost business has been solidly maintained as the core base, and the digital construction business’ profitability has improved significantly. By business segment: 1) In 2025, the digital cost business achieved revenue of RMB 4.78B, down 4.16% year over year. Among this, due to the overall decline in investment in the housing construction field, revenue from cost software declined slightly, while demand from customers for high-quality bidding and refined cost management drove faster growth in products such as engineering data and clearing/objection software; 2) The digital construction business achieved revenue of RMB 846 million, up 7.58% year over year. Because the company focuses on high-value core scenarios at the product level and focuses on national core regions and key customers at the marketing level, the operating quality of the digital construction business improved markedly. In 2025, the gross margin reached 58.33%, up 22.46 percentage points year over year; 3) The digital design business achieved revenue of RMB 71 million, down 21.04% year over year, mainly because in 2025 the company promoted its new products, namely 3D Dimension House Construction Design and 3D Dimension Basic Construction Design, and revenue from the legacy design products of its subsidiary Hongye Technology gradually declined; 4) The company accelerated its deployment in overseas markets such as Southeast Asia, the Middle East, and Europe. In 2025, overseas business achieved revenue of RMB 240 million, up 18.18% year over year.

Construction industry large-scale models iterate quickly, with AI applications fully rolled out. As the core carrier of the company’s AI capability, AecGPT, the construction industry large-scale model, has completed iterative upgrades across multiple dimensions of versions, and has focused on breakthroughs in complex-scenario reasoning capability and expert-annotation-free reinforcement learning capability. Currently, AecGPT has completed technical validation and business implementation for core scenarios across seven major fields, including design, transactions, and costs. At the same time, the company has deeply deployed AI applications around three major scenarios: design integration, cost refinement, and construction refinement. Specifically, under the design integration scenario, the company built a solution design product, Concetto, to use AI to reconstitute the design workflow; under the cost refinement scenario, the company uses AI + data to drive refined cost management throughout the entire project process, and focuses on building products such as AI quantity takeoff, AI intelligent bill-of-materials composing, and AI clearing/objection; under the construction refinement scenario, the company focuses on deploying products such as AI-assisted project decision analysis and AI production safety.

Investment Recommendation

As a leading building IT vendor, the company will fully benefit in the future from the ongoing push for digital transformation in the construction industry. The company expects EPS for 2026–2028 to be 0.35\0.44\0.50 respectively. Based on the company’s closing price of 11.01 yuan on April 2, the company’s PE for 2026–2028 is 31.2\25.0\22.2 respectively. Maintain the “Buy-Add” rating.

Risk Warning

Risks that downstream customer demand fails to meet expectations, business expansion fails to meet expectations, foreign exchange rate fluctuation risks, and risks of intensifying market competition.

Analyst: Peng Haochen

Practitioner registration code: S0760525060001

Report publication date: April 7, 2026

【Analyst Commitment】

I have been registered with the China Securities Association as a securities analyst. I promise to independently and objectively prepare this report with a diligent professional attitude. I am responsible for the contents and views of this securities research report, and I ensure that the sources of information are legal and compliant, that research methods are professional and prudent, and that the analysis conclusions have reasonable grounds. This report clearly and accurately reflects my research views. I have never, and will not, directly or indirectly receive any form of compensation due to the specific recommendation opinions or views stated in this report. I commit not to use my identity, position, or information obtained during my practice process for personal gain or for the benefit of others.

【Disclaimer】

This subscription account is not a platform for publishing securities research reports of the Shanxi Securities Research Institute. All content contained herein comes from securities research reports that the Shanxi Securities Research Institute has officially published. If subscribers use materials from this subscription account, they may produce interpretive ambiguity regarding key assumptions, ratings, target prices, and other contents due to a lack of understanding of the complete report. Subscribers are requested to refer to the complete securities research reports published by the Shanxi Securities Research Institute, read carefully all statements attached, information disclosure matters and risk warnings, pay attention to the key assumption conditions under which the related analyses and forecasts can hold, pay attention to the forecast time horizon for investment ratings and securities target prices, and accurately understand the meaning of investment ratings.

The shares of Shanxi Securities Co., Ltd. (hereinafter referred to as “this Company”) have the qualifications for securities investment consulting businesses. This Company will not be deemed as a matter of course client of this Company because any institution or individual pays attention to, receives, or subscribes to the content pushed by this subscription account. This Company’s securities research reports are based on publicly available information that this Company considers reliable; however, this Company does not guarantee the accuracy or completeness of such information. There are risks in entering the market; investment requires caution. Under no circumstances does the information or opinions expressed in this subscription account constitute investment advice to any person. Under no circumstances does this Company assume any responsibility for any losses incurred by any person due to the use of any content in this subscription account. The materials, opinions, and suppositions provided by this subscription account only reflect this Company’s judgments made on the date the report is published by its research institute. In different periods, this Company may issue reports that are inconsistent with the materials, opinions, and suppositions in this subscription account. Under legal permission, this Company or its affiliated entities may hold or trade securities or investment targets issued by listed companies mentioned in this subscription account, and may also provide investment banking or financial advisory services to or seek to provide such services for these companies. Subscribers should consider that this Company may have potential conflicts of interest that could affect the objectivity of this report. This Company fulfills its disclosure obligations within the scope of its knowledge. The copyright of this subscription account belongs to this Company. This Company reserves all rights. Without this Company’s prior written authorization, no part of this subscription account may be produced, photocopied, or otherwise copied in any form, or redistributed to any other person in any way, or used in any other manner that infringes upon this Company’s copyright. Otherwise, this Company reserves the right to pursue legal responsibility at any time.

Pursuant to the 《Practice Standards for the Publication of Securities Research Reports》, this statement is hereby made: it is prohibited for employees of our company to privately provide our company’s securities research reports to any public media or other institutions that have not been authorized by our company; it is prohibited for any public media or other institutions to privately publish or forward our company’s securities research reports without authorization. Any authorization to publish or forward our company’s securities research reports must be arranged through signing an agreement, and it must be clearly specified that the authorized institution bears the corresponding responsibility for publication or forwarding.

Pursuant to the 《Practice Standards for the Publication of Securities Research Reports》, this prompt is hereby given to our securities research business clients: please do not forward our company’s securities research reports to others; we prompt our securities research business clients and the public investors to use securities research reports published through public media with caution.

Pursuant to the 《Integrity and Compliance Provisions for Securities Firms and Their Staff》 and the 《Implementation Rules for Integrity and Compliance for Securities Firms and Their Staff》, this notice is hereby given to our securities research business clients to comply with integrity and compliance provisions.

Massive information, precise interpretation—only on the Sina Finance app