Core Viewpoint - The company, A-share listed Jingchen Co., Ltd. (688099.SH), plans to issue H-shares and list on the Hong Kong Stock Exchange to enhance its capital strength and competitiveness, furthering its international strategy [1][2]. Group 1: Company Overview - Jingchen Co., Ltd. is a global fabless semiconductor system design company, focusing on the research, design, and sales of system-on-chip (SoC) and peripheral chips [2][3]. - The company's core products include S series SoC chips, which are widely used in various multimedia terminal products, including IPTV set-top boxes and OTT set-top boxes [2][3]. Group 2: Financial Performance - In the first half of 2025, Jingchen Co., Ltd. achieved a revenue of 3.33 billion yuan, a year-on-year increase of 10.42%, and a net profit of 497 million yuan, up 37.12% [1][5]. - The company reported a record high shipment of nearly 50 million units in the second quarter of 2025, with revenue reaching 1.80 billion yuan, a year-on-year increase of 9.94% [5][6]. Group 3: International Market Presence - By the first half of 2025, the company's overseas revenue reached 2.96 billion yuan, accounting for 88.9% of total revenue, with an overseas gross margin of 38.49%, significantly higher than the domestic gross margin of 23.25% [1][3]. - The company has received certifications from major streaming services like Netflix, Google, and Amazon, and its products are widely adopted by both domestic and international operators [3][4]. Group 4: Research and Development - Since 2022, the company has consistently invested over 1 billion yuan in R&D annually, with R&D expenses reaching 735 million yuan in the first half of 2025, representing a year-on-year increase of 8.98% [6]. - As of the first half of 2025, the company employed 1,564 R&D personnel, accounting for 86.55% of its total workforce, with an average salary of 332,800 yuan [6].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company's revenue for the first half of 2025 reached 3.33 billion yuan, a year-on-year increase of 10.42%, with a gross margin of 36.8%, up 1.43 percentage points [7] - The company's product mix optimization has driven gross margin growth, while scale effects have improved net profit margin [7] - The company has received domestic and international orders for its 8K chips, indicating strong market recognition and technical capabilities [7] - AIoT products are rapidly expanding, with Wi-Fi chip sales significantly increasing, reflecting enhanced market penetration and product competitiveness [7] - The revenue forecast for 2025-2027 is adjusted to 73.1 billion yuan, 88.32 billion yuan, and 103.91 billion yuan, respectively, with net profit expectations slightly raised [7] Financial Summary - Total revenue for 2023 is projected at 5.371 billion yuan, with a year-on-year decrease of 3.14%, while net profit is expected to be 498.04 million yuan, down 31.46% [1] - For 2024, total revenue is expected to rise to 5.926 billion yuan, a 10.34% increase, with net profit forecasted at 821.92 million yuan, a 65.03% increase [1] - By 2025, total revenue is projected to reach 7.310 billion yuan, a 23.34% increase, with net profit expected at 1.06093 billion yuan, a 29.08% increase [1] - The company's earnings per share (EPS) is forecasted to be 1.95 yuan in 2024, 2.52 yuan in 2025, and 3.35 yuan in 2026 [1]

Core Insights - The company reported a revenue of 1.53 billion yuan for Q1 2025, representing a year-on-year increase of 10.98%, and a net profit of 188 million yuan, up 47.53% year-on-year, with a gross margin of 36.23% [1] - The smart home and Wi-Fi 6 segments are expected to maintain high growth momentum in 2025, with smart home chip sales increasing over 50% year-on-year and Wi-Fi 6 chip shipments growing by 35% [2] - The company has made significant R&D investments, totaling 1.352 billion yuan in 2024 and 359 million yuan in Q1 2025, leading to a competitive advantage across multiple product lines [3] Financial Performance - Q1 2025 revenue reached 1.53 billion yuan, a 10.98% increase year-on-year [1] - Net profit for Q1 2025 was 188 million yuan, reflecting a 47.53% year-on-year growth [1] - Gross margin stood at 36.23% [1] Product Performance - Smart home chip sales surged over 50% year-on-year, with over 10 million units shipped in a single quarter [2] - Wi-Fi 6 chip shipments increased by 35%, with 25% of shipments being Wi-Fi 6 2*2 chips, a significant rise from 1.5% in Q1 2024 [2] - The S series chips captured the largest share in domestic operator tenders, while the T series saw a 30% increase in sales [3] R&D Investment - The company invested 1.352 billion yuan in R&D in 2024 and 359 million yuan in Q1 2025 [1][3] - The focus on R&D has led to advancements in various product lines, including the S905X5 series and 8K chips, with expectations of significant sales growth [3] Investment Outlook - The company is positioned to benefit from the AI industry trend, with projected revenues of 7.408 billion yuan, 9.26 billion yuan, and 10.741 billion yuan for 2025 to 2027, respectively [4] - Expected net profits for the same period are 1.019 billion yuan, 1.394 billion yuan, and 1.815 billion yuan [4] - A target price of 97.1 yuan is set, with a 40x PE ratio for 2025, maintaining a "Buy-A" investment rating [4]