Core Viewpoint - Anhui Xici Technology Co., Ltd. has submitted an IPO application to the Hong Kong Stock Exchange, aiming to capitalize on the growing global magnetic sensor market driven by strong demand in sectors such as new energy vehicles, industrial automation, and healthcare [1][2]. Financial Performance - The company has shown a fluctuating but overall growing revenue trend, achieving a turnaround to profitability in 2024 with a net profit of approximately 985.2 thousand yuan, following significant losses in previous years [2][3]. - Revenue figures for the years 2022 to 2024 are approximately 666.3 million yuan, 594.2 million yuan, and 703.4 million yuan, respectively, with net profits of -1.206 billion yuan, -66.6 million yuan, and 985.2 thousand yuan [3][4]. Market Position - Xici Technology ranks sixth among global IDM manufacturers in the magnetic sensor industry and is the leading company in China, with a market share of less than 0.6% as of 2024 [10]. - The company has a strong focus on current sensors, which accounted for 80.8%, 78.1%, and 82.7% of total revenue from 2022 to 2024 [4][5]. Product and R&D - The core products include AMR, GMR, and TMR sensors, with a flexible IDM model that allows for customized solutions across the entire value chain [2][3]. - R&D expenditures have been increasing, with 42.7 million yuan in 2022 and 53.7 million yuan in 2024, indicating a commitment to innovation [7]. Global Expansion - The company is actively pursuing global expansion, with subsidiaries in Germany and Portugal, and has made strategic acquisitions to enhance its market presence in Europe [6][10]. - Xici Technology's products are primarily sold in China, but the company is working to diversify its market reach internationally [6]. Industry Growth - The global magnetic sensor market is projected to grow from 741 billion yuan in 2020 to 1192 billion yuan in 2024, with a compound annual growth rate (CAGR) of 12.6% [8]. - The demand for magnetic sensors is driven by sectors such as automotive, new energy, industrial automation, and consumer electronics [8][11]. Future Outlook - The company is expected to benefit significantly from the recovery in the photovoltaic and new energy vehicle markets, which are projected to see increased demand in the coming years [11][13]. - Successful completion of the IPO could provide essential support for the company's global strategic layout and technological upgrades, further solidifying its competitive advantage [13].

Core Viewpoint - Anhui Xici Technology Co., Ltd. has submitted its listing application to the Hong Kong Stock Exchange, aiming to raise funds for R&D, new production base construction in Wuxi, and upgrading its German wafer production line. The company's revenue has significantly declined in 2023 due to industry demand, but it is expected to achieve profitability in 2024 [1][7]. Group 1: Company Overview - Anhui Xici, established in 2013, is an IDM enterprise in the magnetic sensing field, focusing on the R&D and manufacturing of magnetic sensor products using xMR core technology [2]. - The company has a global strategic layout with subsidiaries in Germany, Portugal, and three locations in China, including manufacturing and R&D centers [2]. Group 2: Financial Performance - In 2023, the company's revenue was 594.206 million RMB, a decrease of 10.8% from 666.309 million RMB in 2022. However, revenue is projected to recover to 703.414 million RMB in 2024, an increase of 18.4% [7][8]. - The company reported a net loss of 1.206 billion RMB in 2022, a smaller loss of 66.562 million RMB in 2023, and is expected to achieve a net profit of 98.52 million RMB in 2024 [7][8]. Group 3: Revenue Composition - The majority of the company's revenue comes from current sensors, which accounted for 78.5% of total revenue in 2024, increasing to 82.1% in the first four months of 2025 [10]. - The company's products are significantly affected by the semiconductor industry, which is known for its volatility due to cyclical downturns and rapid technological changes [10]. Group 4: Customer Concentration - A significant portion of the company's revenue is derived from a small number of major clients, with the largest client contributing 31.3% of total revenue in 2022, decreasing to 17.8% in the first four months of 2025 [11][15]. - The top five clients accounted for 65.2% of total revenue in 2022, which decreased to 58% in the first four months of 2025, indicating a high customer concentration risk [11][15].

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company achieved a record high revenue of 1.524 billion yuan in 1H2025, representing a year-on-year increase of 79.49%, with a significant narrowing of losses [7] - In 2Q2025, the company reported a revenue of 808 million yuan, up 65.83% year-on-year and 12.49% quarter-on-quarter, marking a historical high for a single quarter [7] - The automotive electronics segment is becoming the core growth engine, with a revenue share of 34.04% in 1H2025 [7] - The company is expanding its product offerings in automotive electronics, including chips for new energy vehicles and AI server-related demands [7] - The forecasted revenues for 2025, 2026, and 2027 are 3.009 billion yuan, 3.705 billion yuan, and 4.436 billion yuan respectively, with corresponding net profits of 21 million yuan, 272 million yuan, and 509 million yuan [7] Financial Performance Summary - The company’s revenue is projected to grow from 1.311 billion yuan in 2023 to 3.009 billion yuan in 2025, with a growth rate of 53.5% [6] - The net profit is expected to turn positive in 2025, reaching 21 million yuan, after losses of 305 million yuan in 2023 and 403 million yuan in 2024 [6] - The gross margin for 2Q2025 was reported at 35.97%, showing improvements both year-on-year and quarter-on-quarter [7] - The earnings per share (EPS) is expected to improve from -2.15 yuan in 2023 to 0.14 yuan in 2025 [6] Market Performance - The company’s stock has outperformed the market, with a 12-month performance of 127%, compared to the Shanghai Composite Index and the semiconductor sector [4]