Ingenic(SZ:300223) EBSCN·2025-05-11 10:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected investment return that will outperform the market benchmark index by more than 15% over the next 6-12 months [4][6]. Core Insights - The company, Beijing Junzheng, is primarily engaged in chip research and sales, focusing on computing chips, storage chips, and analog and interconnect chips. It adheres to a product strategy of "computing + storage + analog" and a market strategy of "internal circulation + external circulation" [1]. - In 2024, the company reported a revenue of 4.213 billion yuan, a year-on-year decrease of 7.03%, and a net profit attributable to shareholders of 366 million yuan, down 31.84% year-on-year. However, in the first quarter of 2025, revenue increased to 1.060 billion yuan, a year-on-year growth of 5.28% and a quarter-on-quarter growth of 4.83% [1][4]. - The company is actively developing advanced process technologies and has completed mass production of 8Gb DDR4, 8Gb LPDDR4, and 16Gb LPDDR4 chips to meet the growing demand in the automotive and industrial markets [2]. - The company is also investing in the research and development of 3D DRAM technology to meet the increasing bandwidth and capacity demands from AI applications and high-performance computing [3]. Summary by Sections Financial Performance - The company’s revenue and net profit for 2024 are projected to be 4.213 billion yuan and 366 million yuan, respectively, with a decline in both metrics compared to 2023. The forecast for 2025-2027 shows a gradual recovery, with expected net profits of 508 million yuan, 654 million yuan, and 767 million yuan [4][5]. - The company’s earnings per share (EPS) is expected to improve from 0.76 yuan in 2024 to 1.59 yuan in 2027 [5][11]. Market Position and Strategy - The company maintains a competitive edge in the industrial and automotive sectors while pursuing advanced process technologies. It plans to provide engineering samples of new DRAM products based on various process nodes by 2025 [2][4]. - The demand for AI storage chips, including 3D DRAM, is rapidly increasing, and the company is well-positioned to capitalize on this trend due to its strong design experience and industry resources [3]. Valuation Metrics - The current market valuation corresponds to a price-to-earnings (P/E) ratio of 64 for 2025, decreasing to 43 by 2027, indicating a potential for growth as the company recovers from the current downturn [4][5][13].