Huachuang Securities: Maintains "Recommended" rating for Cambrian, profitability elasticity is releasing, inventory and R&D are being simultaneously ramped up.

Huachuang Securities' research report points out that Cambricon's profit elasticity is being released, with simultaneous increases in inventory and R&D. In the first half of 2026, the net profit attributable to the parent company reached 2.311 billion yuan, a year-on-year increase of 122.61%; among them, the net profit in Q2 2026 was 1.298 billion yuan, a year-on-year increase of 90.11% and a quarter-on-quarter increase of 28.08%. The company relies on scaled deployments from leading clients in finance and the internet, establishing an effective closed loop of business scenario feedback and product optimization upgrades across multiple fields such as smart grids. With the iterative upgrades of internet-related products, both revenue and profit have expanded in tandem. Inventory has significantly increased, with strategic stockpiling taking the lead. By the end of the reporting period, the book value of the company's inventory was 8.248 billion yuan, an increase of 66.83% compared to the beginning of the year, accounting for 45.32% of total assets, mainly due to the increase in raw materials and commissioned processing materials. The purchasing chain has been advanced, and R&D barriers reinforced. With the acceleration of stockpiling, as of the end of June 2026, the company's prepayments amounted to 2.914 billion yuan, up 291.4% from the beginning of the year; notes payable reached 3.085 billion yuan, and accounts payable was 1.076 billion yuan, with increases of 779.3% and 40.6%, respectively, indicating a clear expansion of the procurement and settlement chain. Considering the ongoing release of domestic AI computing power demand, the emergence of scaled benefits, inventory reserve expansion, and the synergistic advantages of hardware and software, we maintain a "buy" rating.