Thundersoft (300496.SZ): In-house AIOS to empower smart automotive and AI devices; Sell

Thundersoft continues to enhance its AIOS and AI agent technology to empower the automotive, IoT and smartphones segments, meanwhile expanding to the Embodied AI solution. The company delivered strong 2Q26 revenues growth at 40% YoY to Rmb2.6bn, supported by IoT revenues growth at 47% YoY in 1H26, followed by smart automotive at 14% and smart software at 22% YoY. Due to the product mix change, 2Q26 GM was lower than expected at 27% (vs. 31% in 2Q25). Management has highlighted that the company develops AquaClaw for IoT to integrate Agent OS on the AI native devices, supporting the AI features of AI glasses, smart home, meeting devices, robotics etc. While we are positive on the company's long-term growth potential in the AI era, we remain concerned about near-term margins on product mix changes and new product ramp-ups. Maintain Sell.