Jingchen shares (688099): The company expects 2Q25 revenue to maintain year-on-year growth
DATE:  Apr 20 2025

In 1Q25, the company achieved revenue of 1.530 billion yuan (yoy: +10.98%, qoq: +18.93%), net profit attributable to the parent company of 188 million yuan (yoy: +47.53%, qoq: -17.52%), and net profit attributable to the parent company of 170 million yuan (yoy: +44.04%, qoq: -11.93%). Benefiting from the quarter-on-quarter growth of S/T/A series revenue, the company's revenue in 1Q25 bucked the trend to achieve a quarter-on-quarter increase, but due to factors such as equity payment expenses and exchange losses, the net profit attributable to the parent declined month-on-month, of which the impact of the company's share payment expenses on the net profit attributable to the parent was 19 million yuan in 1Q25 (14 million yuan in 4Q24). The company expects 2Q25 revenue to maintain year-on-year growth and maintain full-year revenue growth guidance. We are optimistic that the company's 6nm and 8K new products will achieve large-scale production in 25 years, and WiFi 6 will enter a period of rapid growth, driving the company's operating performance to continue to improve and maintain "buy".

1Q25 Review: A/W series revenue increased year-on-year, and domestic set-top box demand picked up1Q25 The company's revenue achieved year-on-year growth, mainly due to: 1) the rapid growth of smart home demand and the continuous improvement of the penetration rate of end-side smart technology, with the A series shipping volume exceeding 10 million units in a single quarter, and the revenue increasing by more than 50% year-on-year; 2) The rapid increase in WiFi chip volume, 1Q25 shipments increased by more than 35% year-on-year, of which WiFi 6 2*2 shipments continued to rise, accounting for 25% (2024: 11%), and the company expects that WiFi 6 sales and proportion are expected to maintain a growth trend in the subsequent quarters; 3) Domestic operators set-top boxes resumed pulling goods, and the revenue of the S series is expected to increase month-on-month, which is basically the same as that of the same period last year. In terms of gross profit margin, the gross profit margin of the company in 1Q25 was 36.23% (yoy: +2.01pct, qoq: -0.97pct), and the gross profit margin of the company's various product series remained stable, and the comprehensive gross profit margin decreased month-on-month, which is expected to be mainly due to changes in product structure.

25-year outlook: equity incentive demonstrates confidence in the rapid growth of new business, and maintains the guidance of annual revenue growthThe company released a restricted stock incentive plan in 2025, according to the equity incentive target, the company's wireless connection chip and vision system chip shipments in 2025/26/27/28 need to exceed 2392/3612/5410/81.1 million, maintaining an annual growth of about 50%, demonstrating the company's confidence in the rapid growth of the WiFi business. The company expects that the operating performance in 25 years is expected to achieve year-on-year growth: 1) S series: the domestic set-top box market has gradually recovered, and the company has achieved the largest share in the bidding of many domestic operators in 24 years, and the orders are expected to be gradually realized; In addition, the new 6nm products help expand overseas markets, and have obtained orders from a number of top international operators, and the company expects that the sales volume is expected to exceed 10 million in 25 years; 2) T series: The company has completed the full coverage of the international mainstream TV ecosystem, and the current overseas market share is still low, and it is expected to further increase in 25 years; 3) A series: The company's products can be equipped with self-developed intelligent device-side computing power units, and the cooperation with overseas leading enterprises is in-depth, and the implementation of device-side AI applications is expected to drive demand.

Investment suggestion: the target price is 88.9 yuan, maintain the "buy" rating considering the uncertainty of downstream demand growth rate, and it is expected that the net profit attributable to the parent company in 25-27 years will be 10.67/13.79/1.744 billion yuan (compared with the previous value: -10.71%/-10.69%/-11.24%), the company's WiFi business has entered a period of rapid growth, but considering the uncertainty faced by export demand, 35x 25PE (comparable company Wind consensus of 42.5x), target price of $88.9 (prior: $99.8, based on 35x 25PE), "BUY".

Risk warning: new product research and development is less than expected, market competition is intensifying, and market development is less than expected.

Follow Yicai Global on

star50stocks

Ticker Name

Percentage Change

Inclusion Date