Ingenic(SZ:300223) Guotou Securities·2024-04-14 16:00Investment Rating - The report maintains a "Buy-A" investment rating for the company with a 6-month target price of 79.3 CNY, while the current stock price is 61.75 CNY [1][6]. Core Views - The company is expected to benefit from the ongoing upcycle in the storage industry, particularly in the automotive sector, which is anticipated to drive demand for DRAM products [3][6]. - The company has diversified its product lines into computing chips, storage chips, analog chips, and interconnect chips, with significant revenue contributions from each segment [2][6]. - The report forecasts steady revenue growth for the company, projecting revenues of 53.92 billion CNY, 62.01 billion CNY, and 71.31 billion CNY for 2024, 2025, and 2026 respectively [6][7]. Summary by Sections Financial Performance - In 2023, the company reported revenues of 4.53 billion CNY, a decrease of 16.28% year-on-year, and a net profit of 537 million CNY, down 31.93% year-on-year [1][6]. - The company’s revenue breakdown for 2023 shows computing chips at 1.11 billion CNY (25%), storage chips at 2.91 billion CNY (64%), and analog chips at 408 million CNY (9%) [2][6]. Product Lines - The company focuses on three main product lines: computing chips, storage chips, and analog/interconnect chips, with ongoing development of new products to enhance market competitiveness [2][3]. - The storage chip segment includes SRAM, DRAM, and Flash products, primarily targeting automotive, industrial, and medical markets [3][6]. Market Outlook - The global storage market is expected to enter an upcycle, driven by increased demand from AI applications and automotive intelligence, which will likely lead to a rise in DRAM prices [3][6]. - The report emphasizes that the company is well-positioned to capitalize on these trends due to its strong product offerings and market presence [3][6].