Ingenic(SZ:300223) EBSCN·2024-05-17 07:07Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The industry market demand is under pressure, but a recovery is expected in 2024 as inventory levels decrease and the global economy gradually recovers [4][5] - The company has experienced a decline in revenue and net profit in 2023, but forecasts indicate a potential rebound in 2024 [5][6] Company Overview - Beijing Junzheng is a leading integrated circuit design company in China, focusing on the research and sales of integrated circuit chip products, including computing chips, storage chips, and analog/interconnect chips, widely used in automotive electronics, industrial and medical applications, communication devices, and consumer electronics [4] - In 2023, the company reported revenue of 4.531 billion yuan, a year-on-year decrease of 16.28%, and a net profit of 537 million yuan, down 31.93% [5][6] Market Demand and Performance - The automotive and industrial markets faced low demand in 2023 due to oversupply and inventory pressures, impacting the sales of industry-targeted chip products [4] - A recovery in consumer market demand is anticipated in 2024, driven by inventory reduction and positive trends in various consumer sectors [5] Product Strategy and Competitive Edge - The company adheres to a product strategy of "Computing + Storage + Analog," enhancing its core competitiveness [5] - The DRAM product line targets high-barrier professional applications, meeting the requirements for industrial, medical, and automotive-grade products [5] Financial Forecasts and Valuation - The company’s net profit forecasts for 2024 and 2025 have been adjusted to 755 million yuan (-31.6%) and 930 million yuan (-35.7%), respectively [5][6] - Projected revenues for 2024-2026 are 5.410 billion, 6.481 billion, and 7.604 billion yuan, with corresponding net profits of 755 million, 930 million, and 1.122 billion yuan [6][7] - The current market capitalization corresponds to a PE ratio of 38, 31, and 26 for the years 2024, 2025, and 2026, respectively [6]