What progress has been made in deploying edge AI?

  • Xue Hongwei of Guolian Minsheng Securities believes recent catalysts for edge AI have been numerous and commercialization has accelerated. In October, Toread disclosed that its Shanghai Tongtu Semiconductor subsidiary had signed a strategic cooperation agreement and a dedicated contract with a company specializing in AI chips for edge-side large-model inference, to jointly develop mobile graphics acceleration and edge AI technology.
  • In end products, the Nubia Navi X Ultra, equipped with the consumer version of the Doubao Phone Assistant, launched in September; among Huawei’s newly released products, the Xiaoyi smart assistant is evolving into a personal agent that understands user behavior.
  • Xue Hongwei is optimistic about vendors including Rockchip, Espressif Systems and Bestechnic, which could benefit from edge AI, while warning of risks including AI device launches and demand falling short of expectations and intensifying competition in the SoC industry.

How is NSFOCUS pursuing AI security demand?

  • NSFOCUS’s products cover two areas: using AI to assist security operations, and protecting the security of large models and agents themselves. It serves industries including government, telecommunications, finance and energy.
  • Chen Chao of Orient Securities believes that replicating, rolling out and delivering benchmark AI security projects could help make the related business a core driver of the company’s medium- to long-term growth.
  • Data security is another business foundation: the company’s data leak prevention products maintain a leading market position, and related solutions have been applied in government services, healthcare and public data operations.

What does profit improvement depend on?

  • Chen Chao is optimistic about the long-term potential of NSFOCUS’s AI security and data security businesses, but believes a substantial profit turnaround still awaits a revenue recovery. The main risks are AI security demand materializing below expectations and intensifying competition in the cybersecurity market.
  • Orient Securities forecasts revenue of 2.674 billion yuan, 2.992 billion yuan and 3.23 billion yuan respectively for 2026–2028, and net profit attributable to the parent company of 21 million yuan, 104 million yuan and 160 million yuan respectively. It assigns a target price of 13.02 yuan based on a 4 times price-to-sales ratio for 2026.