Ingenic(SZ:300223) Zhi Tong Cai Jing·2025-09-21 03:06Core Viewpoint - Beijing Junzheng, a leading chip manufacturer, has submitted its prospectus for an IPO on the Hong Kong Stock Exchange, aiming to leverage its strong market position in various chip segments and capitalize on the recovery of the semiconductor industry [1][8]. Company Overview - Beijing Junzheng is a global leader in "computing + storage + analog" chips, providing high-performance, low-power computing chips, high-quality storage chips, and a variety of high-specification analog chips for markets such as automotive electronics, industrial medical, AIoT, and smart security [1][2]. - The company ranks sixth globally in niche DRAM, first among companies in mainland China, and fourth among global automotive-grade niche DRAM suppliers. In SRAM, it ranks second globally and first in mainland China, while in NOR Flash, it ranks seventh globally and third in mainland China [1][2]. Financial Performance - The company's revenue has been declining over the past three years, with revenues of approximately RMB 54.12 billion, RMB 45.31 billion, and RMB 42.13 billion from 2022 to 2024, respectively. As of the first half of 2025, revenue was RMB 22.49 billion, a year-on-year decrease of 6.7% [2][3]. - Net profit has also decreased from RMB 7.79 billion in 2022 to RMB 3.64 billion in 2024, although it showed a slight recovery in the first half of 2025 with a net profit of RMB 2.02 billion [3]. Market Trends - The global chip market is expected to grow significantly, from approximately USD 356.2 billion in 2020 to USD 515.3 billion in 2024, with a compound annual growth rate (CAGR) of 9.7%. By 2029, the market is projected to reach around USD 900.3 billion, with a CAGR of 11.0% from 2025 to 2029 [5][6]. - The semiconductor industry has faced a downturn since 2022, characterized by inventory buildup and pricing pressure, but signs of recovery began in the second quarter of 2024, particularly in the consumer electronics sector [3][5]. Product Structure - The company's product lines include computing chips, storage chips, and analog chips, with storage chips accounting for 61.6% of revenue as of the first half of 2025, while computing and analog chips contributed 26.9% and 10.8%, respectively [2][4]. - The company has a strong presence in automotive electronics, benefiting from the growing demand for high-performance storage chips driven by trends such as electrification and automation in vehicles [7]. Competitive Advantages - Beijing Junzheng's dual business model of "processor + storage chip" provides robust growth potential, with a strong customer base in IoT devices and smart home applications [6][7]. - The acquisition of ISSI has positioned the company as a leading supplier of automotive storage chips, enhancing its revenue, profitability, and global competitiveness [7]. - The company's commitment to independent innovation in CPU technology and AI engines strengthens its market position and aligns with national strategies for self-sufficiency [7][8].