Ingenic(SZ:300223) Guoxin Securities·2024-05-10 01:00Investment Rating - The investment rating for Beijing Junzheng (300223.SZ) is "Buy" [1][4] Core Views - The report indicates that the computing chip segment is experiencing significant growth, while the overall industry market is yet to show clear signs of recovery. In Q1 2024, the company achieved revenue of 1.007 billion yuan, a year-over-year decrease of 5.8% and a quarter-over-quarter decrease of 9.4%. The net profit attributable to shareholders was 87 million yuan, down 23.9% year-over-year and 48.3% quarter-over-quarter [1] - The computing chip revenue grew to 240 million yuan, up 13.3% year-over-year, driven by product expansion and recovery in consumer demand. The analog chip revenue increased to 106 million yuan, up 16.9% year-over-year, benefiting from demand recovery in office equipment and white goods [1] - The report emphasizes the company's strategic focus on enhancing its computing, storage, and analog chip layouts to solidify long-term growth capabilities. The company is expanding its AI chip applications into various markets, including medical and industrial sectors [1] Financial Performance Summary - In 2023, the company reported total revenue of 4.531 billion yuan, a decrease of 16.3% year-over-year, with a net profit of 537 million yuan, down 31.9% year-over-year. The gross margin was 37.1%, a decline of 1.5 percentage points year-over-year [2][1] - The revenue from storage chips and analog and interconnect chips faced year-over-year declines due to weak market demand and inventory pressures, with revenues of 2.911 billion yuan (down 28.2%) and 409 million yuan (down 14.6%), respectively [1] - The company expects revenue for 2024 and 2025 to be adjusted to 5.218 billion yuan and 6.467 billion yuan, respectively, with net profits of 654 million yuan and 899 million yuan [1][2]