Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 69.5, indicating a potential upside of 22.4% from the current price of HKD 56.80 [1][3]. Core Insights - The recent EDA export ban by the Trump administration is expected to accelerate the domestic replacement process for EDA tools in China, which could benefit companies like the report's subject, as they possess self-developed EDA capabilities [1][9]. - The company is positioned as a key beneficiary of the semiconductor domestic replacement trend, with its independent EDA capabilities allowing it to maintain robust revenue growth and high profit margins amid increasing geopolitical risks [9]. Financial Summary - Sales revenue is projected to grow from RMB 464 million in FY23A to RMB 1,284 million by FY27E, with a CAGR of approximately 27.6% [2][14]. - Net profit is expected to increase from RMB 109.2 million in FY23A to RMB 363.3 million in FY27E, reflecting a strong growth trajectory [2][14]. - The company’s P/E ratio is forecasted to decrease from 21.5 in FY23A to 8.6 in FY27E, suggesting an attractive valuation compared to the industry average of 64.0 [2][9]. Market Position - The company has developed a comprehensive EDA platform that integrates EDA tools, IP libraries, and design processes, significantly lowering the barriers to chip design [9]. - As of the end of 2024, the company has integrated over 600 IP modules, establishing a complete tool-IP-design framework [9]. Shareholder Structure - Major shareholders include CICCFT with 12.6% and Value Partners with 6.6% [5]. Stock Performance - The stock has shown strong performance with a 96.2% increase over the past three months [6].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 69.5, indicating a potential upside of 22.4% from the current price of HKD 56.80 [1][3]. Core Insights - The recent EDA export ban by the Trump administration is expected to accelerate the domestic replacement process in China's EDA market, which currently relies heavily on foreign suppliers [1][9]. - The company, 贝克微, is well-positioned to benefit from this trend due to its self-developed EDA platform, which mitigates the impact of export restrictions [9]. - The report highlights that 贝克微's vertical integration in the semiconductor design process provides a strategic advantage in a localized supply chain environment [9]. Financial Summary - Sales revenue is projected to grow from RMB 464 million in FY23A to RMB 1,284 million by FY27E, with a CAGR of approximately 27.6% [2][14]. - Net profit is expected to increase from RMB 109.2 million in FY23A to RMB 363.3 million in FY27E, reflecting a strong growth trajectory [2][14]. - The company's gross margin is forecasted to remain stable around 53% over the next five years [2][14]. Market Position - 贝克微's market capitalization is approximately HKD 3.408 billion, with a current share price of HKD 56.80, which is significantly higher than its 52-week low of HKD 23.05 [4][3]. - The company has a strong shareholder structure, with CICCFT holding 12.6% and 惠理集团 holding 6.6% [5]. - The stock has shown impressive performance, with a 96.2% return over the past three months [6]. Valuation Metrics - The company is currently valued at a P/E ratio of 14.4 for FY25E, which is attractive compared to the industry average of 64.0 [9][13]. - The PEG ratio stands at 0.48, indicating potential undervaluation relative to its growth prospects [9].

Group 1: Hong Kong Stock Market Highlights - Mixue Group (02097) rose over 7%, reaching a new high, with Daiwa raising its target price to HKD 608, optimistic about same-store sales growth and store opening speed [1] - Lianlian Digital (02598) increased nearly 10% following the official enactment of the "Stablecoin Regulation" in Hong Kong [1] - Automotive stocks collectively declined, with Li Auto-W, Great Wall Motors, and GAC Group all dropping over 2%, as the Ministry of Industry and Information Technology and the China Association of Automobile Manufacturers opposed "involution-style" price wars [1] - CSPC Pharmaceutical Group (02005) fell over 7% after reporting a 36.9% year-on-year decline in revenue and a 59.5% drop in net profit attributable to shareholders for Q1, with expectations of a 45%-60% decline in profit for the first half of the year due to demand drop and intensified competition [1] - Solar energy stocks dropped across the board, with New Special Energy, Xinyi Energy, Fuyao Glass, and Xinyi Solar all declining over 4%, as the anticipated "531" rush in May did not materialize following the April rush [1] - Chinese property stocks fell collectively in early trading, with R&F Properties, Sunac China, New City Development, and Agile Group all dropping over 4%, as data showed a 10.8% year-on-year decline in sales for the top 100 real estate companies from January to May, with a 17.3% drop in May alone [1] Group 2: Other Notable Stocks - Chongqing Rural Commercial Bank (03618) rose nearly 5% after being included in the CSI 300 Index, becoming the first local financial institution from Chongqing to be included, with a 6.25% year-on-year increase in net profit attributable to shareholders for Q1 [2] - Baker Hughes (02149) increased over 8%, reaching a new high after completing a placement of 3 million new H-shares, raising approximately HKD 117 million [2] - Giant Bio (02367) fell over 4% amid ongoing controversies regarding its product components, with the company stating it received an apology from the relevant testing agency and will pursue accountability for the rumors [2] - Chip stocks declined across the board, with Hua Hong Semiconductor, Jingmen Semiconductor, SMIC, and Shanghai Fudan all dropping over 2%, influenced by fluctuating U.S. policies and a decline in the Philadelphia Semiconductor Index [2] - Beike-W (02423) dropped nearly 6% as Huaxi Securities reported a significant slowdown in second-hand housing transaction growth, with a mere 8% year-on-year increase in 15 cities for the first 29 days of May, the lowest since October of the previous year [2] Group 3: U.S. Stock Market Highlights - AstraZeneca (AZN.US) rose over 2% after its cancer drug Imfinzi received EU approval for specific muscle-invasive bladder cancer treatments [3] - Trump Media & Technology Group (DJT.US) increased over 2.4% after announcing the completion of approximately USD 2.44 billion in financing, planning to use about USD 2.32 billion for Bitcoin reserves, potentially becoming one of the largest Bitcoin holders among U.S. public companies [3] - Nvidia (NVDA.US) fell over 2.92% after the CEO announced plans to sell up to 6 million shares by the end of 2025 [3] - Palantir (PLTR.US) rose over 7.73% as reports indicated the Trump administration relies on its technology for inter-agency data sharing, with over USD 113 million in government contracts since Trump took office [3] - Costco (COST.US) increased over 3.12% after reporting Q3 earnings that exceeded expectations, with revenue of USD 63.2 billion, an 8% year-on-year increase, and EPS of USD 4.28, demonstrating its scale advantage and member loyalty [3]

Core Viewpoint - The company has completed a placement agreement totaling HKD 120 million, which will enhance its upstream manufacturing capabilities and provide additional liquidity for operations [1][2] Group 1: Fundraising Details - The placement raised a total of HKD 120 million by issuing up to 3 million shares at a price of HKD 40 per share, representing approximately 4.76% of the total share capital [2] - The placement price reflects a discount of about 10.41% compared to the closing price of HKD 44.65 on May 20, 2025, and an 11.39% discount compared to the average closing price of HKD 45.14 over the last five trading days [2] Group 2: Financial Projections - The company expects a revenue growth of 33% for the fiscal year 2025, reaching RMB 770 million, with a net profit growth of 30% to RMB 217 million [2] - The current valuation stands at 12.9 times the forecasted price-to-earnings ratio for fiscal year 2025, or 0.43 times the PEG ratio, indicating an attractive valuation compared to industry peers [2] Group 3: Market Outlook - The company is projected to achieve a year-on-year revenue growth of 27%-33% from 2025 to 2027, with a gross margin maintained between 53%-54% [1] - The stock price increased by 6.6% to HKD 47.6 as of May 21, reflecting positive market sentiment following the fundraising announcement [1]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 69.5, unchanged from previous assessments [2][10]. Core Insights - The company completed a placement of HKD 120 million on May 21, at a price of HKD 40 per share, to enhance upstream manufacturing capabilities and support general working capital [1][10]. - Revenue growth is projected to be between 27% and 33% from 2025 to 2027, with a gross margin expected to remain between 53% and 54% [2][10]. - The company’s stock price increased by 6.6% to HKD 47.6 as of May 21, following the placement announcement [1]. Financial Summary - **Sales Revenue (in million RMB)**: - FY23A: 464 - FY24A: 579 - FY25E: 770 (33% YoY growth) - FY26E: 1,006 (30.8% YoY growth) - FY27E: 1,284 (27.6% YoY growth) [3][14] - **Net Profit (in million RMB)**: - FY23A: 109.2 - FY24A: 166.6 - FY25E: 216.7 (30.1% YoY growth) - FY26E: 285.1 (31.5% YoY growth) - FY27E: 363.3 (27.4% YoY growth) [3][14] - **Gross Margin (%)**: - FY23A: 55.4 - FY24A: 53.0 - FY25E: 53.8 - FY26E: 53.5 - FY27E: 53.3 [3][14] - **Earnings Per Share (in RMB)**: - FY23A: 2.42 - FY24A: 2.78 - FY25E: 3.61 - FY26E: 4.75 - FY27E: 6.05 [3][14] - **Price-to-Earnings Ratio (P/E)**: - FY25E: 12.9 - FY26E: 9.8 - FY27E: 7.7 [3][14] Market Performance - The company's market capitalization is approximately HKD 3,042 million, with a 52-week high of HKD 51.75 and a low of HKD 23.05 [5][12]. - The stock has shown significant performance, with a 59.4% absolute return over the past three months [7].

Investment Rating - The investment rating for BaTeLab is reiterated as "Buy" with a target price maintained at HK$69.5, indicating a potential upside of 37.1% from the current price of HK$50.70 [2][4]. Core Insights - BaTeLab successfully raised HK$120 million through a private placement, which will be used to enhance upstream manufacturing capabilities and for general operational funding. This is crucial for the company's future expansion in the industrial-grade analog IC market [1][2]. - The company is expected to experience robust revenue growth, with projected growth rates of 27%-33% from 2025 to 2027, alongside high profitability with expected gross margins of 53%-54% during the same period [1][2]. Financial Summary - Revenue is projected to grow from RMB 464 million in FY23A to RMB 770 million in FY25E, reflecting a year-on-year growth of 33% [3][11]. - Net profit is expected to increase from RMB 109.2 million in FY23A to RMB 216.7 million in FY25E, representing a year-on-year growth of 30.1% [3][11]. - The company's P/E ratio is currently at 12.9x for FY25E, which is significantly lower than the average of 38x for domestic peers, indicating an attractive valuation [2][10]. Shareholder Structure - The major shareholders include Li Zhen with 53.5% and Zhang Guangping with 39.5% of the shares [5]. Market Performance - Over the past month, BaTeLab's stock has shown a slight increase of 0.2%, while over three months, it has risen by 59.4% [6]. Valuation Metrics - The company is trading at a P/B ratio of 0.43, which is appealing compared to the industry average [2]. - The projected EPS for FY25E is RMB 3.61, with a corresponding P/E ratio of 12.9x, indicating strong earnings potential [3][11].

Group 1 - Hong Kong chip stocks experienced significant fluctuations, with Horizon Robotics (09660.HK) dropping over 4.4% [1] - Semiconductor Manufacturing International Corporation (00981.HK) fell nearly 3% [1] - Other companies such as Baker Hughes (02149.HK) and Jingmen Semiconductor (02878.HK) also saw declines of over 1% [1]

Financial Performance - For the fiscal year ending December 31, 2024, the company achieved revenue of RMB 578.8 million, representing a year-on-year increase of 24.8%[9] - The gross profit for the same period was RMB 306.9 million, with a gross margin of 53.0%[9] - Operating profit increased to RMB 174.0 million, up from RMB 113.4 million in 2023, indicating a strong operational performance[13] - The net profit for the year was RMB 166.6 million, compared to RMB 109.2 million in the previous year, reflecting a significant growth in profitability[13] - Revenue from power management products was RMB 507.7 million, accounting for 87.7% of total revenue, up 24.3% from RMB 408.3 million in the previous year[22][24] - Revenue from signal chain products increased by 16.5% to RMB 64.7 million, driven by new product launches and growing downstream demand[24] - The company's gross profit increased by 19.4% from RMB 257.1 million for the year ended December 31, 2023, to RMB 306.9 million for the year ended December 31, 2024, while the gross margin decreased from 55.4% to 53.0%[27] - Gross profit from power management products rose by 20.6% from RMB 222.9 million in 2023 to RMB 268.7 million in 2024, with a gross margin decrease from 54.6% to 52.9%[28] - Gross profit from signal chain products increased by 11.2% from RMB 34.3 million in 2023 to RMB 38.1 million in 2024, with a gross margin decrease from 61.6% to 58.8%[29] - Other income and net gains surged by 330.5% from RMB 8.1 million in 2023 to RMB 34.8 million in 2024, primarily due to interest income from bank deposits and net foreign exchange gains[30] - Profit before tax increased by 52.0% from RMB 109.2 million in 2023 to RMB 166.0 million in 2024, driven by a significant rise in sales revenue[35] - Annual profit rose by 52.6% from RMB 109.2 million in 2023 to RMB 166.6 million in 2024, mainly due to substantial revenue growth during the reporting period[37] Asset and Liability Management - Total assets reached RMB 1,608.8 million, an increase from RMB 1,270.9 million in 2023, showcasing strong asset growth[15] - Total liabilities increased to RMB 603.8 million, up from RMB 432.7 million in the previous year, indicating a rise in financial obligations[15] - Current assets increased by 24.4% to RMB 1,451.0 million as of December 31, 2024, primarily due to increases in inventory, prepayments, and cash equivalents[43] - The company's bank loans rose to RMB 320.2 million as of December 31, 2024, from RMB 171.6 million in 2023, primarily to support operational funding needs[48] - Inventory increased to RMB 315.4 million as of December 31, 2024, from RMB 218.1 million in 2023, reflecting the company's growth and market demand[56] - Trade receivables decreased to RMB 50.5 million as of December 31, 2024, from RMB 61.3 million in 2023, due to improved collection management[57] - Prepayments rose significantly to RMB 396.3 million as of December 31, 2024, from RMB 261.3 million in 2023, driven by increased procurement needs[58] - Trade and other payables increased to RMB 277.7 million as of December 31, 2024, from RMB 248.5 million in 2023, mainly due to an increase in contract liabilities[59] Research and Development - The company plans to continue focusing on the development of high-end industrial-grade analog chips and expand into new areas such as electric vehicle thermal management and current sensors[10] - The company aims to enhance its R&D efficiency and reduce costs through self-developed EDA tools, while also improving its backend process capabilities[10] - The company introduced 275 new product types during the reporting period, enhancing its product portfolio[20] - R&D expenses grew by 8.5% from RMB 119.1 million in 2023 to RMB 129.2 million in 2024, with material costs for R&D increasing by RMB 22.5 million, a 28.6% year-on-year growth[33] - The company is committed to developing competitive products in emerging fields such as new energy storage and electric vehicles, with ongoing R&D efforts and several patents filed in the emerging analog AI computing sector[64] Corporate Governance - The board consists of eight members, including three executive directors, one non-executive director, and four independent non-executive directors as of December 31, 2024[85] - The company emphasizes a healthy corporate culture as the core of good governance, enhancing communication mechanisms between management and employees[78] - The board is committed to maintaining high levels of corporate governance, believing it is crucial for sustainable development and steady performance growth[80] - The company has adopted the corporate governance code as its own governance guidelines and has complied with all applicable provisions during the reporting period[81] - The board has established four specialized committees to oversee specific aspects of the company's affairs, enhancing governance structure[83] - The company regularly reviews and monitors its corporate governance practices to ensure compliance with the governance code[82] - The board's responsibilities include determining business and investment plans, preparing annual financial budgets, and profit distribution schemes[83] - The company has established a review process for the independence of its non-executive directors, which is conducted annually[95] - The audit committee, remuneration and assessment committee, and nomination committee are all chaired by independent non-executive directors[93] Employee Management - As of December 31, 2024, the company has 116 full-time employees, with 71 in R&D, 31 in operations and administration, 11 in sales and marketing, and 3 in senior management[60] - The company emphasizes competitive compensation and performance bonuses to attract and retain qualified personnel, recognizing the importance of talent for sustainable growth[61] - The company provides onboarding training and regular workshops for employees to ensure self-development, particularly for R&D staff who receive specialized training[193] - The company approved a restricted stock unit incentive plan on December 2, 2024, aimed at attracting and retaining talent, with a total share limit of 6,000,000 shares, which is 10% of the total shares issued as of the adoption date[195][197] Market and Strategic Outlook - The market demand for analog ICs in industrial and automotive electronics remains stable, driven by the growth of new energy vehicles and green energy management systems[17] - In 2025, the company anticipates increased domestic demand in sectors such as new energy vehicles and data centers, driving further R&D and innovation efforts[64] - The company plans to enhance its manufacturing capabilities through the launch of a new backend process R&D center within the year, aimed at improving efficiency and optimizing costs[64] - The strategic committee reviewed the company's overall development and strategic planning for 2024, focusing on market, marketing, R&D, and talent[131] Risk Management - The company faces various risks, including market risk, operational risk, investment risk, human resource risk, and financial risk, which are managed through established procedures[163][164][166][168] - The company has established a comprehensive risk management and internal control system integrated into its business processes, with clear responsibilities assigned to each position[137] - The board conducts annual reviews of the risk management and internal control systems, ensuring resources and training for accounting and financial reporting functions are sufficient[135] Shareholder Relations - The company has established a shareholder communication policy to enhance investor relations and ensure timely disclosure of information[146] - The company ensures all shareholders have equal rights and protections during shareholder meetings[103] - The company did not recommend the payment of a final dividend for the year ending December 31, 2024, consistent with the previous year where no dividend was declared[160]

Group 1 - Semiconductor stocks in Hong Kong experienced a collective decline, with notable drops in companies such as Beike Micro (02149.HK) and Huahong Semiconductor (01347.HK), both falling over 6% [1] - Other companies like Xianxixing (00595.HK), Naodong Technology (02203.HK), and SMIC (00981.HK) also saw declines exceeding 3% [1]

Financial Performance - The company's revenue increased by 24.8% from RMB 463.9 million in 2023 to RMB 578.8 million in 2024, driven by optimized semi-automated chip design methods and continuous introduction of new industrial products [3]. - Gross profit increased by 19.4% from RMB 257.1 million in 2023 to RMB 306.9 million in 2024, with a slight decrease in gross margin from 55.4% to 53.0% [5]. - Profit before tax surged by 52.0% from RMB 109.2 million in 2023 to RMB 166.0 million in 2024, mainly due to the substantial increase in sales revenue [6]. - Net profit rose by 52.6% from RMB 109.2 million in 2023 to RMB 166.6 million in 2024, attributed to the significant increase in revenue during the reporting period [6]. - Basic earnings per share increased to RMB 2.777 from RMB 2.424 in 2023, representing a growth of 14.6% [40]. - The company reported a pre-tax profit of RMB 165,960,000 for 2024, up 52% from RMB 109,158,000 in 2023 [37]. - Annual profit rose by 52.6% from RMB 109.2 million for the year ending December 31, 2023, to RMB 166.6 million for the year ending December 31, 2024, attributed to substantial revenue growth during the reporting period [86]. Revenue Breakdown - Revenue from customer contracts for simulation IC pattern wafers was RMB 572,428,000 in 2024, an increase of 23.4% from RMB 463,881,000 in 2023 [24]. - Revenue from power management products rose by 24.3% from RMB 408.3 million in 2023 to RMB 507.7 million in 2024, driven by new product launches and increased customer demand [70]. - Revenue from signal chain products increased by 16.5% from RMB 55.6 million in 2023 to RMB 64.7 million in 2024, benefiting from new product introductions and downstream demand recovery [70]. - Direct sales revenue surged by 90.4% from RMB 58.2 million in 2023 to RMB 110.9 million in 2024, attributed to the expansion of new direct customers [71]. - Total revenue from major customers A, B, and C for 2024 was RMB 522,799,000, representing a 24% increase from RMB 405,495,000 in 2023 [28]. Expenses and Costs - The cost of sales rose by 31.5% from RMB 206.8 million in 2023 to RMB 271.9 million in 2024, primarily due to a significant increase in sales revenue [4]. - Research and development expenses grew by 8.5% from RMB 119.1 million in 2023 to RMB 129.2 million in 2024, reflecting the company's expanding business scale and continuous improvement in profitability [6]. - Administrative expenses increased by 21.3% from RMB 26.1 million for the year ending December 31, 2023, to RMB 31.7 million for the year ending December 31, 2024 [80]. - The company's total interest expenses rose to RMB 7,990,000 in 2024 from RMB 4,269,000 in 2023, reflecting an increase of 87% [30]. - Financing costs surged by 87.2% from RMB 4.3 million for the year ending December 31, 2023, to RMB 8.0 million for the year ending December 31, 2024, primarily due to increased interest on short-term bank loans [82]. Cash Flow and Assets - The net cash generated from operating activities for 2024 was RMB 13,561,000, a decrease of 55.3% compared to RMB 30,277,000 in 2023 [15]. - The total cash and cash equivalents at the end of 2024 were RMB 636,020,000, up from RMB 550,838,000 at the end of 2023, representing an increase of 15.4% [15]. - Current assets increased from RMB 1,166.319 million in 2023 to RMB 1,450.973 million in 2024, indicating a strong liquidity position [11]. - The company's equity increased from RMB 838.229 million in 2023 to RMB 1,005.004 million in 2024, reflecting improved financial health [12]. - The total outstanding bank loans increased from RMB 171.6 million as of December 31, 2023, to RMB 320.2 million as of December 31, 2024 [107]. Investments and R&D - The company introduced 275 new product types during the reporting period, enhancing its product offerings in response to stable customer demand for industrial-grade analog chips [59]. - The company has invested in R&D in the emerging field of analog AI computing and has applied for several patents, expecting to launch related products soon [129]. - The company has established a comprehensive training system to develop its R&D team, ensuring continuous talent development and addressing the talent bottleneck in the IC design field [123]. - Material costs for R&D increased by RMB 22.5 million, representing a 28.6% year-on-year growth [81]. - Employee compensation for R&D decreased by RMB 9.7 million compared to the previous year, due to the absence of share-based payment expenses from the prior year [81]. Market and Product Development - The core product series continued to expand its influence and market share in the new energy vehicle sector, contributing to the company's growth strategy [63]. - The H770 platform, focused on high voltage and high current products, accounted for nearly 40% of total revenue, reflecting strong market expansion in the new energy sector [66]. - The U660 platform, known for its efficiency and reliability, saw revenue growth of over 35% due to its applications in automotive and industrial control systems [66]. - The market demand for analog ICs in industrial, automotive, and data center sectors remains stable, driven by the increasing penetration of new energy vehicles and green energy management systems [58]. - The company’s product matrix includes over 700 models, enabling applications across various sectors such as automotive electronics, medical, and industrial automation [62]. Corporate Governance and Compliance - The company has allocated sufficient resources to ensure compliance with applicable laws and regulations, with no significant violations reported as of December 31, 2024 [124]. - The audit committee has reviewed the audited financial statements for the year ending December 31, 2024, confirming compliance with applicable accounting standards and regulations [133]. - The company did not buy, sell, or redeem any of its listed securities during the reporting period, and as of December 31, 2024, it holds no treasury shares [125]. - The company has maintained sufficient public float as required by the listing rules during the reporting period and up to the announcement date [134]. Future Outlook - For 2025, the company anticipates further deepening of domestic demand in new energy vehicles, data centers, and green energy management, focusing on R&D and innovation [128]. - The company plans to enhance its engineering capabilities through a self-developed EDA technology platform, with a backend engineering R&D center expected to be operational within the year [128]. - The company will continue to develop products closely aligned with market demand in new energy storage, electric vehicles, and high-end industrial sectors [129]. - The company is actively managing market, operational, and investment risks to ensure effective measures are in place to achieve business objectives [92][93][94].