1. Introduction to SoC Chips

SoC (System on Chip) is a system-level chip that integrates modules such as CPU, GPU, RAM, NPU, and ISP, characterized by high performance, low power consumption, and high integration, widely used in smart devices. Compared to traditional MCUs, SoCs are more suitable for complex tasks (such as AI inference and multi-screen interaction).

2. Development History and Market Positioning of Rockchip

• Established: 2001, a leading IoT SoC design company in China.

• Technical Route:

• Early Stage: Focused on consumer electronics (tablets, set-top boxes, etc.).

• Post-2020 IPO: Extended to B-end, covering industrial, automotive, and AIoT fields.

• Process and Performance:

• Flagship Chip RK3588: 8nm process, 6 TOPS NPU computing power, supports 8K 60fps decoding, comparable to Qualcomm Snapdragon 8295.

• Mid-range Chips RK3576/RV1126: Used for industrial vision and security (1/3 of global security devices use these).

• Entry-level RV1109/RK3506: Suitable for smart home and consumer electronics.

3. Core Growth Drivers

1. Automotive Intelligence

• Smart Cockpit: RK3588M supports “one chip drives seven screens,” adopted by automakers such as BYD and NIO.

• Market Potential: Domestic automotive chip demand is expected to grow fivefold by 2025.

Explosion of Edge and On-device AI

• Scenarios: AIoT devices, industrial automation, security monitoring.

• Advantages: Low power consumption (e.g., RK3576 only 1.2W), high cost-performance ratio, customization capabilities.

Data Centers and Edge Computing

• RK3588 is adopted by Google Data Centers, with edge computing revenue expected to account for 15% by 2024.

4. Financial Performance and Valuation

• 2024 Performance:

• Revenue of 3.14 billion yuan (+47%), net profit of 600 million yuan (+341%), gross margin of 37.6%.

• Accelerated Growth in Q1 2025:

• Revenue of 885 million yuan (+62.95%), net profit of 209 million yuan (+209.65%), gross margin of 40.95%.

• Valuation:

• Current market value of 70 billion yuan, corresponding to a PE of about 70 times for 2025 (institutions predict net profit of 1 billion yuan).

• High Valuation Logic: The automotive and AIoT sectors have several times growth potential in the coming years.

5. Future Outlook and Investment Opportunities

• Core Highlights:

• Increased penetration of automotive intelligence (replacing Qualcomm solutions).

• Explosion of on-device AI demand (e.g., robotics, industrial inspection).

• Risk Warnings:

• Intensifying industry competition (e.g., Horizon, HiSilicon).

• Technology iteration risks (need to continuously follow advanced processes).

• Operational Suggestions:

• In a high-growth sector, if a valuation correction occurs, it may present a layout opportunity.

6. Key Data Overview

Indicator	2024	Q1 2025
Operating Revenue	3.14 billion yuan (+47%)	885 million yuan (+62.95%)
Net Profit	600 million yuan (+341%)	209 million yuan (+209.65%)
Gross Margin	37.6%	40.95%
Automotive/AIoT Proportion	Continuously increasing	Edge computing accounts for 15%

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ZGXIC Agency Distribution Brand

Company Profile:

The company was established in 2010 and underwent strategic integration and reorganization in 2022, renamed “Shenzhen Zhongji Chip Technology Co., Ltd.” Zhongji Chip mainly engages in semiconductor component agency distribution, leveraging over a decade of industry accumulation to innovate and integrate into a modern distribution structure and model, striving to build a five-star semiconductor supply chain platform for comprehensive services.

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