通过过渡期建设；维持买入

Building through transition; Maintain BUY BaTeLab reported FY25 results with revenue broadly flat at +0.9% YoY, whilenet profit declinedby26.8% YoY to RMB122mn, mainly due to share-basedcompensation of~RMB53mn and a forex loss of~RMB14mn amid RMBappreciation. Excluding these two non-core items,adj.net profit grew 18.5%YoY. Gross margin declined to 51.7% in FY25 from 53.0% in FY24, primarilydue to an inventory impairment of~RMB35mn. In our view, the Company is stillbalancinggrowth and profitability as it navigates channel optimization, supplytightness, and higher raw material costs. Looking ahead, we expect BaTeLab to TargetPriceHK$57.00(Previous TPHK$93.00)Up/Downside39.0%Current PriceHK$41.00 China Semiconductors Kevin ZHANG(852) 3761 8727kevinzhang@cmbi.com.hkAaron GUO(852) 3916 3715aaronguo@cmbi.com.hk SKU expansion continued in 2025,althoughrevenue growth remainedmodestamid ongoing channel optimization.We estimate that theCompany added~150 SKUs in 2025, bringing its total portfolio to over1,000, while revenue grew only slightly asmgmt.continued shifting awayfrom distributor sales toward direct sales. Distributor sales accounted for66% of FY25 revenue, down from 81% in 2024 and 77% in 1H25. We expectmgmt.to continue prioritizing direct sales to enhance long-term profitability,strengthencustomer relationships,and reduce reliance on third-party Building for next phase.The Company’s medium-term strategy remainscentered on expanding its analog product portfolio, improving customer mix,and strengthening supply-chain control.Mgmt.plans to keep adding newSKUs while further increasing direct and quasi-direct sales, which shouldsupport better pricing discipline andlong-term profitability. The Company isalso targeting newer growth areas such as server power and selected Maintain BUYwith TP revised to HK$57,corresponding to 17x 2026EP/Ewith FY26sales/net profitforecastsreviseddown by17%/27%. Given theCompany’s current liquidity profile, we believe a peer-basedvaluation approach has become less appropriate. While domestic namessuch as 3Peak and SGMicro, as well as overseas peers including TI andADI, remain useful operational benchmarks, the Company’sshare price hasincreasinglybeen driven by stock-specific liquidity rather than sector Source: FactSet Source: Company data, CMBIGM estimates Source: Company data, CMBIGM estimates Disclosures& Disclaimers Analyst Certification The research analyst who is primary responsible for the content of this research report, in whole or in part, certifies thatwith respect to the securities or issuerthat the analyst covered inthis report: (1) all of the views expressed accurately reflect his or her personal views about the subject securities or issuer; and (2)no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific views expressedby that analyst in this report.Besides, the analyst confirms that neither the analyst nor his/her associates (as defined in the code of conduct issued by The Hong Kong Securities and Futures Commission) (1) have dealt in or traded in the stock(s) coveredin this research report within 30 calendar days prior to the date of issue of this report; (2) willdeal in or trade in the stock(s) covered in this research report 3 business days after the date of issue of this report; (3)serve as an officer of any ofthe HongKong listed companies covered in this report; and (4) have any financial interests in the Hong Kong listed companies coveredin this report. CMBIGM RatingsBUY : Stock with potential return of over 15% over next 12 monthsHOLD: Stockwith potential return of +15% to-10% over next 12 monthsSELL: Stock with potential loss of over 10% over next 12 monthsNOT RATED: Stock is not rated byCMBIGM OUTPERFORM:Industry expected to outperform the relevant broad market benchmark over next 12 monthsMARKET-PERFORM:Industry expected to perform in-line with the relevant broad market benchmark over next 12 monthsUNDERPERFORM:Industry expected to underperform the relevant broad market benchmarkover next 12 months Address: 45/F, Champion Tower, 3 Garden Road, Hong Kong, Tel: (852) 3900 0888 Fax: (852) 3900 0800CMB InternationalGlobal MarketsLimited (“CMBIGM”) is a wholly owned subsidiary of CMBInternational Capital Corporation Limited (a wholly ownedsubsidiary of China Merchants Bank) Important Disclosures There are risks involved in transacting in any securities. The information contained in this report may not be suitable forthe purposes of all investors.CMBIGMdoes not provide individually tailored investment advice. This report has been prepared without regard to the individual investment objectives, financial positionor special requirements. Past performance has no indication of future performance, and actual events may differ materially from that which is contained in thereport.The value of, and returns from, any investments are uncertain and are not guaranteed and may fluctuate as a result of their de