1、 YOUR LOCAL BROKER IN OVER 125 MARKETS Auerbach Grayson&Company,LLC WORLDWIDE 20 West 55th Street New York,NY 10019 Telephone 212 557 4444 Toll-Free 1 800 31world R E S E A R C H R E P O R T D I S T R I B U T E D B Y P R E P A R E D B Y The attached research report and the excerpts from the research

2、 report below were written entirely by a broker partner of Auerbach Grayson,and not by Auerbach Grayson.Auerbach Grayson is distributing/providing this research report for your consideration.EQUITY RESEARCH Company Report China Application Software ArcSoft Corp BUY Hong Yizhen|No Contact No.June 9,2

3、025 Price:CNY 43.90 Bloomberg:688088 CH Market Cap:USD 2,566.69 m Outstanding Shares:401.17 m Six Month Avg.Daily Trading vol.(USD m):63.24 52 week High/Low:CNY 57.68/CNY 23.18 A DeepSeek-like computer vision player:from technological dividends to profitability growth Building on our previous report

4、s that primarily examined ArcSofts business models,competitive advantages and new business development,this report introduces novel perspectives through an in depth exploration of technological aspects such as the companys foundational technology optimisation and engineering approach,which parallels

5、 DeepSeeks trajectory.Meanwhile,we assess its potential market share gains while providing overall business analysis and valuation insights.Undervalued technology edges.1)A technologys position within the technological hierarchy dictates the complexity of a products framework,as evidenced by the res

6、pective technological layers of lithography machines,smartphones,and intelligent vehicles.2)The stacking of diverse technology layers and the consequent rise in complexity create multiple optimisation opportunities,potentially yielding three key advantages:cross-layer coupling(exemplified by Huaweis