Ingenic(300223) Great Wall Securities·2024-10-30 09:22Investment Rating - The report maintains a rating of "Accumulate" for the company Beijing Junzheng (300223.SZ) [1] Core Views - The company has shown resilience in its operations, with a quarter-on-quarter growth of 2% in non-net profit for Q3 2024, despite weak demand in the automotive and industrial sectors [2][4] - The introduction of advanced process DRAM products is anticipated, with samples of 21nm expected by the end of 2024 and 20nm by mid-2025, which could drive future growth [4] - The company is positioned as a leading player in the automotive IC sector, with a comprehensive layout across computing, storage, and analog chips, indicating potential for collaborative growth across its segments [4] Financial Summary - For the first three quarters of 2024, the company reported revenue of 3.201 billion, a year-on-year decrease of 6.39%, and a net profit attributable to shareholders of 304 million, down 17.37% year-on-year [9][10] - In Q3 2024, the company achieved a revenue of 1.094 billion, a slight decrease of 0.49% quarter-on-quarter, with a net profit of 107 million, down 3% quarter-on-quarter [8][10] - The gross margin for Q3 2024 was reported at 37.20%, reflecting a decrease of 0.48 percentage points quarter-on-quarter, while the net profit margin was 9.67%, down 0.31 percentage points [7][8] Product Performance - The storage chip segment generated revenue of 671 million in Q3 2024, accounting for 61.28% of total revenue, while the computing chip segment saw a revenue increase of 2.60% quarter-on-quarter [3] - The company’s flagship product, the T23 computing chip, has gained significant market traction, contributing to the revenue growth despite a lack of seasonal demand in the security monitoring market [3][4] Future Outlook - The company projects net profits attributable to shareholders of 458 million, 589 million, and 725 million for 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 65.0, 50.5, and 41.0 [4][10] - The ongoing development of new products and the anticipated recovery in market demand are expected to support the company's growth trajectory in the coming years [4]