A leading domestic IC product and IC solution provider. The layout focuses on long-term development of self-developed chips. The company has focused on the IC field since its inception, deeply involved in the distribution, application design and technological innovation of wireless communication ICs, RF ICs, and sensor devices. It is a leading domestic provider of IC products and IC solutions. The company maintains cooperation with leading IC design manufacturers at home and abroad, and its important customers are well-known domestic electronic product manufacturers. Runxin Technology has skilled wireless communication IC, RF IC and sensor device manufacturing technology and rich sales experience. On the basis of consolidating and perfecting the original business, Runxin Technology closely follows technology development trends and actively explores the implementation and application of new technologies. The company will expand the product supply chain and enrich product usage scenarios; at the same time, gradually penetrate upstream of the IC industry chain to enhance product added value and market competitiveness; lay out the automobile industry and smart home appliance industry in advance to prepare for future development and market development.

The layout of MEMS speakers and SRAM is getting better. Customized and self-developed chips are expected to sign a strategic cooperation agreement with the National Intelligent Sensor Innovation Center in February 23. The aim is to give full play to the technical advantages of the National Innovation Center in the fields of MEMS sensor characteristic technology and advanced packaging and testing, and carry out IC custom design and industrial cooperation in the fields of AI artificial intelligence, IOT smart homes, and bio-wearables. In June of the same year, Runxin Technology and Jiutian Ruixin reached a cooperation agreement to customize chips for markets such as smart homes, AI smart wearables, AI smart speakers, and new energy vehicles to help high-end customers achieve intelligent product upgrades. The SRAM-based in-memory computing technology designed by Jiutian Ruixin has many outstanding advantages. In '24, the company joined hands with CyweeMotion and Yuanjing Moore to continue to strengthen the layout of smart wearables and integrated sensory storage and computing applications.

In deep cooperation with Kiplet's connected products and AI computing power chips, the company indirectly held 2.88% of the shares in Strange Moore by transferring part of the property shares of Kiwimore's shareholders on November 23, 2023, and plans to carry out a follow-up investment plan after the agreed prerequisites are met, that is, it has the right to choose to increase its shareholding in Strange Moore to no more than 20%. In the future, the two sides will further explore the innovation of Chiplet's industrial development model and expand the space for cooperation on various Chiplet connected products and applications of connected cores. Globally, the combination of connected technology and Chiplet design has become the core driving force for breaking through Moore's Law challenges. As the world's leading connected product and solution company, Kiwi-Link unified interconnection architecture, Kiwi-Link provides full-link Chiplet connectivity and network acceleration core products and solutions to help customers create next-generation products more efficiently and at lower cost.

Investment advice: We expect the company to achieve net profit of $108/1.52/212 million in 2024/2025/2026. Considering the company's high growth and high barriers, the 2024 PE valuation was given to the company 43 times, and the corresponding share price was 9.2 yuan/share, which covered the “buy” rating for the first time.

Risk warning: risk of market changes, risk of loss of core business personnel, risk of new product iteration and R&D failure, risk of supplier changes, exchange rate risk