GOODIX(SH:603160) Xin Lang Cai Jing·2025-08-26 06:02Core Viewpoint - The announcement of the investigation into the president of Huida Technology, Liu Yuping, for insider trading has led to a significant decline in the company's stock price and market value, raising concerns about its future performance and management stability [2][4]. Company Overview - Huida Technology, established in 2002 and headquartered in Shenzhen, specializes in the research and commercialization of multi-functional phone chips, touch chips, fingerprint recognition chips, Bluetooth SoC, and security chips, primarily serving the smart terminal, IoT, and automotive electronics sectors [2]. - The company went public on the Shanghai Stock Exchange in 2016 [2]. Stock Performance - Following the announcement of the investigation, Huida Technology's stock price fell nearly 4.8% on August 26, closing at 79.94 yuan per share, a decline of 3.34%, with a total market capitalization of 36.939 billion yuan [2]. - The current market value is approximately one-fifth of its peak value of over 170 billion yuan in February 2020, representing a loss of over 130 billion yuan [2]. Management Changes - Liu Yuping has been in the position of president for less than six months, having been appointed on March 21, 2023 [4]. - Liu has a long history with the company, having held various positions since 2005, and returned to the company in March 2025 after a nearly three-year absence [4]. - The previous president, Hu Yuhua, resigned shortly after a failed acquisition attempt, indicating potential instability in the company's leadership [4]. Business Challenges - Huida Technology faces significant challenges due to its heavy reliance on the smartphone market, which has seen a decline in demand since 2020 [5][6]. - Revenue is projected to decrease from 6.473 billion yuan in 2019 to 4.375 billion yuan in 2024, with net profit dropping from 2.317 billion yuan to 604 million yuan during the same period, representing declines of 32.4% and 73.9%, respectively [5]. - The company is attempting to diversify its product line through acquisitions, but recent efforts, such as the failed acquisition of Yunyinggu, have not been successful [6]. Future Outlook - Huida Technology is focusing on automotive and IoT chips as part of its long-term strategy, but significant breakthroughs are not expected in the short term due to the lengthy development and commercialization cycles [6]. - The company's revenue for the first half of the year was 2.251 billion yuan, a slight decrease of 0.20% year-on-year, while net profit increased by 35.74% to 431 million yuan [6]. - Institutional investor interest has significantly declined, with the number of institutions holding Huida Technology shares dropping from 433 to 11 [6].