Intchains Group Ltd. ADR (ICG) AI Stock Analysis

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Intchains Group Ltd. ADR

(NASDAQ:ICG)

63Neutral

Intchains Group Ltd. exhibits strong revenue growth and a solid balance sheet, but faces liquidity challenges due to poor cash flow. While the earnings call was positive with strong income growth, technical indicators suggest potential downward pressure. The stock's high valuation and market pressures pose additional risks.

Intchains Group Ltd. ADR (ICG) vs. S&P 500 (SPY)

Market Cap

$114.50M

Dividend YieldN/A

Average Volume (3M)27.63K

Price to Earnings (P/E)15.4

Beta (1Y)0.84

Revenue Growth236.05%

EPS GrowthN/A

CountryUS

Employees133

SectorTechnology

Sector Strength51

IndustrySemiconductors

Share Statistics

EPS (TTM)0.12

Shares Outstanding28,375,372

10 Day Avg. Volume31,843

30 Day Avg. Volume27,627

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)22.18

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$9.50

Price Target Upside419.13% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Intchains Group Ltd. ADR Business Overview & Revenue Model

Company DescriptionIntchains Group Limited designs and sells application-specific integrated circuit chips and ancillary software and hardware for blockchain applications in the People's Republic of China. It serves distributors, companies, and individuals. Intchains Group Limited was founded in 2017 and is based in Pudong, China.

How the Company Makes MoneyIntchains Group Ltd. generates revenue through the sale of its integrated circuit products, which are predominantly used in the cryptocurrency industry and other data-intensive applications. The company designs and manufactures these high-performance chips to meet the increasing demand for efficient and powerful computing solutions. Key revenue streams include direct sales to businesses and partnerships with technology firms that require custom chip solutions. Additionally, the company benefits from strategic collaborations with industry-leading enterprises that enhance its market reach and technological capabilities. These partnerships and the company's continuous innovation play a significant role in sustaining and growing its revenue.

Intchains Group Ltd. ADR Financial Statement Overview

Summary

Intchains Group Ltd. shows strong revenue growth and a solid balance sheet with low leverage and high equity. However, cash flow challenges raise risks to liquidity and operational sustainability. Enhancing operational efficiency is crucial for better profitability and cash generation.

Income Statement

Positive

Intchains Group Ltd. has shown significant revenue growth from 2023 to 2024, with a notable increase from $82.2M to $281.8M. The gross profit margin improved substantially, reflecting efficient cost management. However, EBIT and EBITDA margins remain low, suggesting potential challenges in operational efficiency. The net profit margin saw a remarkable recovery from a negative position in 2023 to 18.3% in 2024.

Balance Sheet

Positive

The company maintains a strong financial position with a high equity ratio of 93.0% in 2024, indicating a robust capital structure. The debt-to-equity ratio remains exceptionally low, suggesting minimal leverage risks. The return on equity improved significantly, demonstrating effective utilization of shareholders' capital. The overall stability is supported by a substantial cash reserve relative to total liabilities.

Cash Flow

Negative

Cash flow performance is concerning, with zero operating and free cash flow reported in 2024. This indicates potential difficulties in generating cash from operations, despite positive net income. The absence of positive free cash flow growth raises concerns about the company's ability to sustain its operations and invest in growth without external financing.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
281.77M	82.22M	473.74M	631.84M	54.60M
	Gross Profit
151.31M	9.08M	386.72M	517.88M	31.27M
	EBIT
3.16M	-64.97M	360.88M	450.58M	8.07M
	EBITDA
6.99M	-31.66M	324.51M	447.87M	9.10M
	Net Income Common Stockholders
51.50M	-26.80M	355.20M	450.14M	8.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
520.81M	708.35M	712.23M	502.42M	19.63M
	Total Assets
1.09B	979.25M	953.13M	611.26M	43.90M
	Total Debt
272.00K	1.86M	1.27M	2.20M	239.00K
	Net Debt
-321.98M	-692.89M	-710.97M	-500.22M	-19.39M
	Total Liabilities
76.44M	28.93M	19.53M	32.86M	9.71M
	Stockholders Equity
1.01B	950.33M	933.60M	578.40M	34.19M
Cash Flow		Free Cash Flow
0.00	-56.28M	322.67M	393.65M	15.34M
	Operating Cash Flow
0.00	-4.71M	326.69M	395.42M	15.59M
	Investing Cash Flow
0.00	-64.99M	-116.87M	-1.77M	-251.00K
	Financing Cash Flow
0.00	51.22M	0.00	89.14M	251.00K

Intchains Group Ltd. ADR Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.83

Price Trends

50DMA

3.41

Negative

100DMA

4.10

Negative

200DMA

5.07

Negative

Market Momentum

MACD

-0.54

Positive

RSI

28.92

Positive

STOCH

26.19

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICG, the sentiment is Negative. The current price of 1.83 is below the 20-day moving average (MA) of 2.68, below the 50-day MA of 3.41, and below the 200-day MA of 5.07, indicating a bearish trend. The MACD of -0.54 indicates Positive momentum. The RSI at 28.92 is Positive, neither overbought nor oversold. The STOCH value of 26.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ICG.

Intchains Group Ltd. ADR Risk Analysis

Intchains Group Ltd. ADR disclosed 82 risk factors in its most recent earnings report. Intchains Group Ltd. ADR reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Intchains Group Ltd. ADR Peers Comparison

Overall Rating

UnderperformOutperform

Sector (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRAM	65 Neutral	$109.97M	150.91	1.34%	―	-20.96%	-92.24%
ICG	63 Neutral	$114.50M	15.43	5.21%	―	236.05%	―
Sector *	58 Neutral	$11.04B	9.83	-6.56%	3.16%	7.59%	-10.43%
QUIK	45 Neutral	$78.21M	―	-18.39%	―	-5.12%	-900.38%
ATOM	44 Neutral	$122.82M	―	-85.25%	―	-75.45%	15.25%
GSIT	41 Neutral	$70.92M	―	-36.62%	―	-10.03%	36.54%
MX	40 Underperform	$105.12M	―	-17.48%	―	1.88%	-64.63%

* Technology Sector Average

Performance Comparison

ICG

Intchains Group Ltd. ADR

1.83

-6.27

-77.41%

GSIT

GSI Technology

2.81

-0.80

-22.16%

MagnaChip

2.93

-2.00

-40.57%

QUIK

QuickLogic

4.94

-7.54

-60.42%

ATOM

Atomera

4.08

-1.56

-27.66%

MRAM

Everspin Technologies

4.95

-2.50

-33.56%

Intchains Group Ltd. ADR Earnings Call Summary

Earnings Call Date: Feb 27, 2025 | % Change Since: -52.22% | Next Earnings Date: May 21, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong revenue and income growth, driven by demand for new mining products and favorable cryptocurrency price movements. However, there were concerns about market pressure and a slight decline in gross margin.

Highlights

Revenue Growth

Achieved revenue of $10.2 million in Q4 2024, marking a 109% year-over-year increase.

Net Income Increase

Non-GAAP adjusted net income rose by 54% to $2 million in Q4 2024.

Ethereum Holdings Growth

Ethereum-based cryptocurrency holdings increased by 37% quarter-on-quarter to 5,702 units.

Aleo Series Mining Product Launch

Launched the Aleo series mining product in February 2025, expected to drive performance in the first half of the year.

Strong Demand for Dogecoin and Aleo Mining Machines

Significant demand for Dogecoin and Aleo mining machines, contributing to revenue and market leadership.

Cryptocurrency Price Gains

Gained $4 million in fair value of cryptocurrency in Q4 2024, aided by a 31.5% increase in Ethereum price.

Lowlights

Gross Margin Decline

Slight dip in gross margin in Q4 2024 due to a higher proportion of lower-margin Dogecoin miner sales.

Market Pressure and Economic Concerns

Overall crypto market under pressure due to economic recession concerns and other negative events, impacting risk appetite.

Company Guidance

During Intchains' fourth quarter 2024 earnings call, Chief Financial Officer Chaowei Yan provided a comprehensive overview of the company's financial performance and strategic initiatives. The company reported a remarkable 109% year-over-year increase in revenue, reaching $10.2 million, driven by a rejuvenated cryptocurrency market, particularly Ethereum and Dogecoin. The non-GAAP adjusted net income rose by 54% to $2 million, with Ethereum holdings increasing by 37% quarter-on-quarter to 5,702 units. Looking ahead, Intchains anticipates continued growth with the launch of new products like the Aleo series mining product and a hardware wallet. The company expects first-quarter 2025 revenue to be between RMB 100 million and RMB 120 million, with the first half of 2025 projected revenue ranging from RMB 200 million to RMB 250 million. Intchains remains optimistic about its strategic focus on Ethereum accumulation and the development of its mining products, despite the broader market pressures.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.