Investment Rating - The report maintains a "Buy" rating for Beijing Junzheng, expecting a price increase of 5% to 15% relative to the industry index over the next six months [7]. Core Views - The company has turned a profit in Q1 2025, with a significant recovery in its non-net profit attributable to shareholders, driven by a rebound in the automotive and industrial sectors [2][3]. - The company is actively expanding into advanced DRAM processes and 3D DRAM products aimed at AI applications, indicating strong growth potential [4]. - The overall revenue for 2024 is projected to decline by 7.03% year-on-year, with a net profit decrease of 31.84%, primarily due to weak market demand in the automotive and industrial sectors [10]. Financial Summary - **Revenue and Profitability**: - 2023 revenue is projected at 4,531 million CNY, with a decline to 4,213 million CNY in 2024, followed by a recovery to 5,109 million CNY in 2025 [14]. - The net profit attributable to shareholders is expected to decrease from 537 million CNY in 2023 to 366 million CNY in 2024, before rising to 502 million CNY in 2025 [14]. - The gross margin for Q1 2025 improved to 36.40%, up 1.93 percentage points from the previous quarter [2][8]. - **Earnings Per Share (EPS)**: - The latest diluted EPS is projected to be 1.12 CNY in 2023, decreasing to 0.76 CNY in 2024, and then recovering to 1.04 CNY in 2025 [14]. - **Valuation Ratios**: - The Price-to-Earnings (P/E) ratio is expected to decrease from 59.1 in 2023 to 42.4 by 2027, indicating a potential improvement in valuation as earnings recover [14]. - **Return on Equity (ROE)**: - ROE is projected to decline from 4.4% in 2023 to 3.0% in 2024, with a gradual recovery to 5.4% by 2027 [14]. Product Segmentation - **Memory Chips**: - Revenue from memory chips is expected to be 25.89 billion CNY in 2024, accounting for 61.47% of total revenue, despite a year-on-year decline of 11.06% [3]. - Q1 2025 revenue for memory chips was 6.63 billion CNY, reflecting a 9.90% quarter-on-quarter increase [3]. - **Computing Chips**: - Revenue from computing chips is projected at 10.90 billion CNY in 2024, with a slight year-on-year decline of 1.65% [3]. - Q1 2025 revenue for computing chips was 2.70 billion CNY, showing a decrease of 2.65% quarter-on-quarter [3]. - **Analog and Connectivity Chips**: - Revenue from analog and connectivity chips is expected to grow by 15.31% year-on-year to 4.72 billion CNY in 2024 [3].

Investment Rating - The investment rating for the company is "Buy-A" with a target price of 82.6 yuan, maintaining the rating [3][5]. Core Views - The company is expected to benefit from the trends in edge AI industries, with a focus on deepening technology innovations in SOC and DRAM [2]. - The company maintains a product strategy of "computing + storage + analog," actively developing new technologies and products for edge AI and automotive intelligence/electrification [3]. - Revenue projections for the company are estimated at 4.97 billion yuan, 5.82 billion yuan, and 6.86 billion yuan for the years 2025 to 2027, with corresponding net profits of 519 million yuan, 665 million yuan, and 771 million yuan [3]. Financial Performance - In Q1 2025, the company achieved revenue of 1.06 billion yuan, a year-on-year increase of 5.28%, and a net profit of 74 million yuan, a decrease of 15.3% year-on-year [1]. - The gross margin for Q1 2025 was 36.4%, remaining stable compared to the previous quarter [1]. - The company invested 680 million yuan in R&D in 2024, with 176 million yuan spent in Q1 2025 [1]. Business Segments - The company's business includes computing chips, storage chips, and analog/interconnect chips, with significant R&D investments in embedded CPUs, video encoding, image signal processing, neural network processors, and AI algorithms [2]. - In the computing chip segment, the company is accelerating the development of various RISC-V CPU cores and enhancing NPU and VPU capabilities to meet new technology demands [2]. - In the DRAM segment, the company is focusing on advanced process technology and expanding its 3D DRAM layout to meet the needs of AI mobile phones, AI PCs, and AIoT [2].

Financial Performance - The company's revenue for Q1 2025 was CNY 1,060,232,459.55, representing a year-over-year increase of 5.28% compared to CNY 1,007,095,092.34 in the same period last year[5] - Net profit attributable to shareholders decreased by 15.30% to CNY 73,904,992.30 from CNY 87,259,945.64 year-over-year[5] - Total operating revenue for the current period reached ¥1,060,232,459.55, an increase of 5.1% compared to ¥1,007,095,092.34 in the previous period[22] - Net profit for the current period was ¥73,674,693.47, a decrease of 15.5% from ¥87,255,226.99 in the previous period[23] Cash Flow - The net cash flow from operating activities increased significantly by 388.33%, reaching CNY 175,151,109.32, compared to a negative cash flow of CNY -60,745,713.05 in the previous year[5] - Operating cash flow for the period was ¥175,151,109.32, a significant improvement from a negative cash flow of ¥60,745,713.05 in the previous period, indicating a turnaround in operational efficiency[25] - Total cash inflow from operating activities was ¥1,070,271,263.64, compared to ¥1,040,268,003.81 in the prior period, reflecting a growth of approximately 2.4%[25] - Cash outflow from operating activities decreased to ¥895,120,154.32 from ¥1,101,013,716.86, representing a reduction of about 18.7%[25] Assets and Liabilities - The company's total assets at the end of the reporting period were CNY 12,953,437,988.00, a slight increase of 0.20% from CNY 12,926,945,100.27 at the end of the previous year[5] - Total liabilities decreased to ¥815,303,131.29 from ¥844,031,402.20 in the prior period[20] - The company's equity attributable to shareholders rose to ¥12,109,377,822.84, compared to ¥12,053,926,365.37 in the previous period[20] Investment Income - Investment income surged by 1772.04% to CNY 7,449,000.00, attributed to higher returns from financial products[10] - The company reported an investment income of ¥7,448,950.04, significantly higher than ¥397,905.24 in the previous period[23] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 91,287, with the top ten shareholders holding significant stakes[12] - The total number of shares held by the top 10 shareholders was 61,929,113 shares, with significant holdings by Liu Qiang and Li Jie[15][16] - Liu Qiang holds 30,356,658 shares, while Li Jie holds 14,038,339 shares, both under lock-up agreements[15] - The company has a strategy for gradual release of locked shares, with 25% of shares eligible for release annually after the initial lock-up period[15] Expenses - Management expenses rose by 34.07% to CNY 57,761,300.00, primarily due to increased stock incentive costs[9] - Research and development expenses were ¥176,326,719.95, slightly down from ¥180,486,827.22 in the previous period[22] Other Financial Metrics - The company reported a 60.04% increase in asset impairment losses, totaling CNY 14,868,400.00, mainly due to increased inventory write-downs[10] - Basic earnings per share for the current period were ¥0.1535, down from ¥0.1812 in the previous period[24] - Other comprehensive income after tax was -¥30,345,567.83, compared to -¥69,480,673.23 in the previous period[23]

证券代码：300223 证券简称：北京君正 公告编号：2025-023 北京君正集成电路股份有限公司 2025 年第一季度报告披露提示性公告 本公司及董事会全体成员保证信息披露内容的真实、准确和完整，没有虚假 记载、误导性陈述或重大遗漏。 北京君正集成电路股份有限公司《2025 年第一季度报告》已于 2025 年 4 月 25 日在中国证监会指定的创业板信息披露网站巨潮资讯网（www.cninfo.com.cn） 上披露，敬请投资者注意查阅。 特此公告。 北京君正集成电路股份有限公司 董事会 二○二五年四月二十五日 ...

Investment Rating - The report maintains a "Buy" rating for the company, with a market price of RMB 67.89 and an industry rating of outperforming the market [1][3]. Core Views - The company's performance in 2024 is expected to decline due to the industry's market downturn, but its forward-looking multi-dimensional product layout is anticipated to benefit from the release of AI edge-side demand, justifying the "Buy" rating [3][5]. Financial Summary - The company is projected to achieve revenues of RMB 50.15 billion, RMB 56.87 billion, and RMB 64.48 billion for the years 2025, 2026, and 2027 respectively, with corresponding net profits of RMB 5.42 billion, RMB 6.27 billion, and RMB 7.30 billion [5][7]. - The revenue growth rates are expected to be -16.3% in 2023, -7.0% in 2024, followed by 19.1% in 2025, and 13.4% in both 2026 and 2027 [7][8]. - The company's EBITDA is forecasted to be RMB 714 million in 2025, RMB 803 million in 2026, and RMB 906 million in 2027 [7][8]. Market Position and Strategy - The company is accelerating its layout in AI edge-side products, with a continuous improvement in its product line. The sales of computing chips in various fields are expected to grow, while the security monitoring sector may experience slight declines due to demand fluctuations [8]. - The company is focusing on the mid-to-low-end market with its T23 product and has introduced the T32 IPC chip, which is designed for high cost-performance in the security market [8]. Valuation Metrics - The projected price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are 60.3, 52.1, and 44.8 respectively, indicating a potential for valuation improvement as the market stabilizes [5][7]. - The company’s net profit margin is expected to recover to 10.8% in 2025, 11.0% in 2026, and 11.3% in 2027 [8].

Investment Rating - The report maintains a "Recommendation" rating for Beijing Junzheng, with a target price of 85.84 CNY, compared to the current price of 67.89 CNY [3][7]. Core Views - The company is advancing its platform strategy and leveraging AI to drive new growth momentum. Despite facing industry headwinds, the company demonstrates operational resilience and maintains solid profitability [2][7]. - The global consumer electronics market is experiencing varied demand dynamics, with AI technology propelling overall market growth, while certain segments like security monitoring show unstable demand [7][8]. - The company’s revenue for 2024 is projected at 4.213 billion CNY, a year-over-year decrease of 7.03%, with a net profit of 366 million CNY, down 31.84% year-over-year [7][8]. Financial Summary - **2024 Financial Performance**: - Total revenue: 4.213 billion CNY (YoY -7.03%) - Net profit: 366 million CNY (YoY -31.84%) - Non-recurring net profit: 312 million CNY (YoY -36.52%) [7][8]. - **Quarterly Performance**: - Q4 2024 revenue: 1.011 billion CNY (YoY -8.97%, QoQ -7.58%) - Q4 2024 net profit: 62 million CNY (YoY -63.41%, QoQ -42.22%) [7][8]. - **Revenue Breakdown**: - Computing chips: 1.09 billion CNY (YoY -1.65%), gross margin 33.02% - Storage chips: 2.589 billion CNY (YoY -11.06%), gross margin 34.55% - Analog and interconnect chips: 472 million CNY (YoY +15.31%), gross margin 49.61% [7][8]. - **Future Projections**: - Expected revenue for 2025-2027: 5.167 billion CNY, 6.122 billion CNY, and 7.110 billion CNY respectively - Expected net profit for 2025-2027: 510 million CNY, 673 million CNY, and 834 million CNY respectively [8][9]. Research and Development - The company is focusing on core technology development and expanding its product matrix, including advancements in RISC-V technology and new AI-ISP products for video applications [7][8]. - New storage chip products are being developed to meet the demand for high-capacity DRAM, with plans to provide engineering samples by 2025 [7][8]. Market Position - The company maintains a strong competitive position in the integrated circuit market, supported by its technological capabilities and product offerings, despite the cyclical downturn in the industry [7][8].

Core Viewpoint - The company reported a decline in revenue and profit for 2024, attributed to industry cyclical lows, but anticipates gradual recovery in 2025 due to new demand in various sectors [1][2]. Financial Performance Summary - For 2024, the company achieved revenue of 4.21 billion, a year-on-year decrease of 7.0%, and a net profit attributable to shareholders of 370 million, down 31.8% year-on-year. The non-recurring net profit was 310 million, reflecting a 36.5% decline [1]. - In Q4 2024, revenue was 1.01 billion, a decrease of 9.0% year-on-year and 7.6% quarter-on-quarter. The net profit attributable to shareholders was 60 million, down 63.4% year-on-year and 42.2% quarter-on-quarter. The non-recurring net profit was -6 million, indicating a 104.2% decline year-on-year and 105.1% quarter-on-quarter [1]. Industry Outlook - The automotive, industrial, and medical sectors are currently experiencing low market conditions, leading to revenue declines for the company. Additionally, increased stock-based compensation and depreciation from acquisitions have negatively impacted profit performance [1]. - The industry has been in a down cycle for over two years, with ongoing inventory destocking. However, new demands in smart driving, data centers, and industrial automation are expected to contribute to a gradual market recovery in 2025 [1]. Product Development and Growth Potential - The company is actively developing new products such as 3D AI DRAM to meet the rising demand for AI computing and storage bandwidth. It has completed mass production of 8Gb DDR4 and 16Gb LPDDR4 products and is advancing the development of new DRAM products across various process nodes [2]. - Emerging applications for DRAM, SRAM, and Flash memory in robotics are also being explored, providing additional growth opportunities [2]. Investment Forecast - Due to the slow recovery of market demand, the company has adjusted its profit forecasts, expecting net profits attributable to shareholders of 450 million, 560 million, and 700 million for 2025-2027, with corresponding PE ratios of 72, 58, and 46 times [2].

Group 1: Market Outlook - The industry market is expected to gradually recover in 2025, with Q3 and Q4 likely showing better performance due to seasonal factors [2][3] - Storage chips are anticipated to reflect global market conditions, with improvements expected in Q1 2025 compared to the previous year [2][3] - The automotive sector is projected to show an upward trend, indicating 2025 could be a turning point for the industry [3] Group 2: Product Development - The 3D DRAM product is still in the R&D phase, with sample availability aimed for this year, while revenue contributions are uncertain [3][4] - High-performance SoC products are expected to exceed 2T by the end of the year, targeting applications in IPC and NVR markets [4] - The demand for 3D DRAM is increasing due to risks associated with HBM export restrictions, with potential applications in AI and high-performance computing [4][5] Group 3: Challenges and Strategic Planning - Tariffs are impacting both DRAM and analog product lines, potentially stabilizing prices for domestic chip manufacturers [5][6] - Key technical challenges for 3D stacking DRAM include stacking processes and thermal management [6] - The company plans to continue focusing on existing product lines while enhancing R&D in high-performance chips and 3D DRAM over the next three to five years [7]

Summary of Beijing Junzheng's Conference Call Company Overview - **Company**: Beijing Junzheng - **Year**: 2024 - **Total Revenue**: 4.2 billion RMB, down 7.58% year-on-year - **Net Profit**: 366 million RMB, down 31.8% year-on-year, significantly impacted by a sluggish industry market [4][6] Key Product Lines 1. Computing Chips - **Revenue**: 1.09 billion RMB, down 1.65% year-on-year, primarily due to a decline in security chip sales [4][6] - **Gross Margin**: 33.02%, an increase of approximately 5 percentage points, mainly due to improved margins in the security sector [8] - **Market Performance**: Over 80% of revenue comes from security monitoring, with growth in niche markets like printers and QR code devices at about 10% [6][9] - **Future Plans**: Introduction of T42 chip with over 2T computing power and expansion into 3D DRAM to meet AI model demands, expected to contribute to revenue starting in 2026 [4][7] 2. Storage Chips - **Revenue**: 2.59 billion RMB, down 11% year-on-year, accounting for over 60% of total revenue [10][6] - **Market Dependency**: 90% of sales come from industry markets, with automotive, industrial, and medical sectors comprising over 70% [10][11] - **Gross Margin**: 34.55%, a slight decline of less than 2 percentage points year-on-year, maintaining a stable level around 30% [13] - **Future Outlook**: Anticipated gradual recovery in 2025, with new DRAM technologies expected to drive growth [4][10] 3. Analog Interconnect Chips - **Revenue**: 470 million RMB, up 15% year-on-year, primarily from LED drivers, with over 50% from automotive applications [15] - **Gross Margin**: 49.6%, but may face competitive pressure in the future [15] Industry Insights - **Market Demand**: The semiconductor market in 2024 shows significant demand disparity; AI-related chip sales are booming, while sectors like automotive, industrial, and medical remain sluggish [5] - **2025 Outlook**: Expected gradual recovery in the industry market, with storage and analog interconnect chips likely to improve quarter by quarter [17] Strategic Developments - **R&D Investments**: Increased focus on advanced process storage chips (20nm, 18nm, 16nm) and 3D DRAM to enhance product competitiveness [4][14] - **Global R&D Team**: The company has a global R&D presence, which is beneficial in the current environment [26] - **Future Strategy**: Plans to deepen engagement in computing and storage sectors, particularly in 3D DRAM, to address the rapid penetration of AIoT [27][29] Market Challenges - **Tariff Impacts**: Tariffs may affect DRAM and analog product lines, necessitating close monitoring and strategic adjustments [22][23] - **Price Stability**: Despite potential tariff benefits for domestic manufacturers, significant price changes are not anticipated due to stable industry relationships [23] Conclusion - **Revenue Expectations**: 2023 and 2024 are challenging years, but a gradual recovery is expected starting in 2025, driven by industry improvements and new product introductions [31]

Core Insights - Beijing Junzheng's 2024 annual report indicates a decline in both revenue and net profit, highlighting significant challenges faced by the company over the past year [1] Financial Key Indicators Analysis - Revenue decreased to 4.21 billion yuan, down 7.03% from 4.53 billion yuan in 2023, primarily due to weak market demand in key sectors such as automotive and industrial for storage chips [2] - Storage chip revenue fell by 11.06% to approximately 2.59 billion yuan, while computing chip revenue slightly declined by 1.65% to about 1.09 billion yuan, despite some growth in specific areas like biometrics [2] - Analog and interconnected chip revenue increased by 15.31% to around 471 million yuan, benefiting from the growth in the domestic new energy vehicle market [2] Net Profit Decline Analysis - Net profit attributable to shareholders was approximately 366 million yuan, a decrease of 31.84% from about 537 million yuan in 2023, driven by reduced revenue and increased costs [3] - The implementation of a restricted stock incentive plan added approximately 45 million yuan in expenses, and asset depreciation and amortization from acquisitions impacted the financial results by about 36.9 million yuan [3] Core Business Profitability Challenges - The net profit excluding non-recurring items was approximately 312 million yuan, down 36.52% from about 491 million yuan in 2023, indicating significant challenges to the core business's profitability [4] Earnings Per Share Decline - Basic earnings per share were 0.7604 yuan, down 31.84% from 1.1156 yuan in 2023, while the diluted earnings per share excluding non-recurring items were 0.6478 yuan, a decrease of 36.52% [5] Expense Analysis - Management expenses increased by 20.31% to approximately 215 million yuan, raising concerns about resource allocation efficiency [6] - Sales expenses slightly decreased by 5.90% to about 295 million yuan, suggesting a need for improved sales strategies and market promotion efforts [7] - Financial expenses improved, showing a negative value of approximately -75 million yuan, indicating that interest income exceeded interest expenses [8] Research and Development Investment - R&D expenses were approximately 681 million yuan, a slight decrease of 3.81% from about 708 million yuan in 2023, reflecting the company's ongoing commitment to technological innovation [10] Cash Flow Analysis - Net cash flow from operating activities was approximately 363 million yuan, down 34.88% from about 558 million yuan in 2023, indicating weakened cash generation capabilities [11] - Net cash flow from investing activities was -2.71 billion yuan, a decrease of 9.76% from -3 billion yuan in 2023, primarily due to reduced cash inflows from maturing bank wealth management products [12] - Net cash flow from financing activities was -106 million yuan, a significant decline of 225.93% from -32 million yuan in 2023, largely due to increased cash distributions to shareholders [13]