Ingenic(SZ:300223) Zhi Tong Cai Jing·2025-09-21 03:16Core 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 and product offerings in the semiconductor industry [1][9]. 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 various analog chips for markets such as automotive electronics, industrial medical, AIoT, and smart security [1]. - 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]. Financial Performance - The company's revenue has been declining, with figures of approximately RMB 54.12 billion, RMB 45.31 billion, and RMB 42.13 billion from 2022 to 2024, respectively. For the first half of 2025, revenue was RMB 22.49 billion, a year-on-year decrease of 6.7% [3]. - Net profit also showed a downward trend from RMB 7.79 billion in 2022 to RMB 3.64 billion in 2024, but there was a slight recovery in the first half of 2025 with a net profit of RMB 2.02 billion [3]. - The gross margin remained relatively stable, with figures of 33.42%, 35.49%, 34.97%, and 34.22% from 2022 to the first half of 2025, while net margins were 14.39%, 11.38%, 8.65%, and 8.97% during the same period [3]. Market Trends - The semiconductor industry has been experiencing a downturn since 2022, characterized by inventory buildup, pricing pressure, and weakened consumer confidence. However, signs of recovery began in the second quarter of 2024, particularly in the consumer electronics sector [4][3]. - The global chip market is expected to grow 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%. Projections indicate further growth to around USD 900.3 billion by 2029, with a CAGR of 11.0% from 2025 to 2029 [6]. Competitive Advantages - The company operates under a fabless model, focusing on chip design and development while collaborating with leading foundries and testing companies to ensure high manufacturing standards [2]. - Beijing Junzheng has a strong product mix, with storage chips accounting for 61.6% of revenue as of mid-2025, while computing and analog chips contributed 26.9% and 10.8%, respectively [2]. - The acquisition of ISSI has positioned the company as a leading supplier of automotive storage chips, enhancing its revenue, profitability, and global competitiveness [8]. - The company's deep involvement in automotive electronics aligns with the long-term trends of electrification, intelligence, connectivity, and sharing in the automotive sector, providing a stable and growth-oriented revenue source [8].