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Intchains Group Ltd. ADR (ICG)
NASDAQ:ICG
RESEARCH TOOLSreports
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Intchains Group Ltd. ADR
(NASDAQ:ICG)
Rating:59Neutral
Price Target:―
Positive Factors
Financial Performance
Revenue came in above the estimate and consensus, driven by a surge of interest in ICG's new mining machine for Aleo.
Market Position
Intchains Group is the leading designer and manufacturer of ASIC chips for Dogecoin, positioning it to benefit from the surge in interest in the token.
Product Launch
Revenue was boosted by strong demand for a new product launch targeting Aleo, a proof-of-work cryptocurrency.
Negative Factors
Guidance
ICG lowered 1H25 guidance to RMB180M-RMB200M, which results from increased competition and a slump in the price of some cryptocurrency assets.
Market Conditions
The price of Aleo is currently down, diminishing returns for equipment operators, which erodes demand and margin for equipment sales.
Intchains Group Ltd. ADR (ICG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$156.97M
Dividend YieldN/A
Average Volume (3M)213.91K
Price to Earnings (P/E)36.4
Beta (1Y)1.33
Revenue Growth236.05%
EPS GrowthN/A
CountryUS
Employees133
SectorTechnology
Sector Strength89
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.04
Shares Outstanding28,375,372
10 Day Avg. Volume340,190
30 Day Avg. Volume213,906
Financial Highlights & Ratios
PEG Ratio-0.13
Price to Book (P/B)0.36
Price to Sales (P/S)0.00
P/FCF Ratio-12.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.25Price Target Upside165.57% 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 Earnings Call Summary
Earnings Call Date:May 22, 2025
(Q1-2025)
| % Change Since: 1.49%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Neutral
The quarter showcased strong revenue growth and improved gross margins, driven by successful launches of new mining products. However, the challenging macroeconomic environment and significant losses due to cryptocurrency market volatility presented notable challenges.Q1-2025 Updates
Positive Updates
Record Revenue and Growth
Revenue reached $18.2 million, a 78.5% quarter-over-quarter increase, exceeding the upper end of the guidance range of $15 million to $16 million.
Significant Gross Margin Improvement
Gross margin improved to 56.9%, up from 26.2% last quarter, reflecting continued focus on product optimization and operational efficiency.
Positive Operating Income
Operating income turned positive at $5.1 million, a strong recovery from a loss in Q4 2024.
Aleo Mining Series Success
The Aleo mining miner series launched successfully, accounting for nearly 75% of total revenue and contributing to the highest quarterly revenue since 2023.
Strategic Product Launches
Launched five iterations of Aleo series miners and the Goldshell Byte, an innovative power mining machine supporting Aleo, Dogecoin, and Litecoin, showcasing technical strength.
Negative Updates
Cryptocurrency Market Challenges
The total market cap of cryptocurrency declined by 18% during the quarter, impacting overall market conditions.
Net Income Decline
Net income was negative $4.7 million, primarily due to a $9.8 million non-cash loss from revaluation of cryptocurrency holdings, mainly due to the 46% drop in Ethereum price.
High Inventory Levels
Inventories remained high, with a need to adjust prices based on market conditions to avoid write-offs.
Company Guidance
During the first quarter of 2025, Intchains Group Limited reported strong financial performance despite a challenging macroeconomic environment and a significant 18% decline in the total market cap of cryptocurrency. The company achieved a revenue of $18.2 million, marking a 78.5% quarter-over-quarter increase and exceeding their guidance range of $15 million to $16 million. Gross margin improved significantly to 56.9% from 26.2% in the previous quarter, reflecting a 286.9% growth. Operating income turned positive at $5.1 million, recovering from a loss in Q4 2024. However, net income was negative $4.7 million due to a $9.8 million non-cash revaluation loss of cryptocurrency holdings, primarily impacted by a 46% drop in Ethereum prices. Despite this, the company increased its Ether holdings by 23% to 7,023 units. The Aleo mining miner series, launched in February, contributed nearly 75% of the total revenue and played a significant role in driving the strong financial outcomes. Looking ahead, Intchains projects first-half 2025 revenue between RMB 180 million to RMB 200 million and remains focused on innovation and long-term value creation.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 pose significant risks to liquidity and operational sustainability. Improvements in operational efficiency are needed to enhance profitability and ensure robust cash generation.Income Statement
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 2024.65
Positive
Balance Sheet
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.78
Positive
Cash Flow
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.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 389.89M | 281.77M | 82.22M | 473.74M | 631.84M | 54.60M |
| Gross Profit | 217.65M | 151.31M | 9.08M | 386.72M | 517.88M | 31.27M |
| EBITDA | 75.59M | 6.99M | -31.66M | 324.51M | 447.87M | 9.10M |
| Net Income | 32.30M | 51.50M | -26.80M | 355.20M | 450.14M | 8.25M |
Balance Sheet | ||||||
| Total Assets | 1.04B | 1.09B | 979.25M | 953.13M | 611.26M | 43.90M |
| Cash, Cash Equivalents and Short-Term Investments | 543.85M | 520.81M | 708.35M | 712.23M | 502.42M | 19.63M |
| Total Debt | 0.00 | 272.00K | 1.86M | 1.27M | 2.20M | 239.00K |
| Total Liabilities | 52.91M | 76.44M | 28.93M | 19.53M | 32.86M | 9.71M |
| Stockholders Equity | 985.14M | 1.01B | 950.33M | 933.60M | 578.40M | 34.19M |
Cash Flow | ||||||
| Free Cash Flow | -27.77M | -148.33M | -56.28M | 322.67M | 393.65M | 15.34M |
| Operating Cash Flow | -22.48M | -138.25M | -4.71M | 326.69M | 395.42M | 15.59M |
| Investing Cash Flow | -61.94M | -125.94M | -64.99M | -116.87M | -1.77M | -251.00K |
| Financing Cash Flow | 0.00 | 0.00 | 51.22M | 0.00 | 89.14M | 251.00K |
Intchains Group Ltd. ADR Technical Analysis
Positive
2.73
Price Trends
2.14
Positive
2.56
Positive
3.62
Negative
Market Momentum
0.15
Negative
71.02
Negative
87.76
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICG, the sentiment is Positive. The current price of 2.73 is above the 20-day moving average (MA) of 1.93, above the 50-day MA of 2.14, and below the 200-day MA of 3.62, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 71.02 is Negative, neither overbought nor oversold. The STOCH value of 87.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 3 New Risks
1.
We have incurred net losses and negative cash flows from operating activities in the past, and we may not achieve or sustain profitability. Q4, 2023
2.
Adverse developments affecting the financial services industry could adversely affect our current and projected business operations and our financial condition and results of operations. Q4, 2023
3.
Increases in labor costs and employee benefits in China may adversely affect our business and our profitability. Q4, 2023
Intchains Group Ltd. ADR Peers Comparison
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $154.80M | 176.22 | -0.31% | ― | -22.48% | -102.37% | |
59 Neutral | $156.97M | 36.35 | 3.39% | ― | 236.05% | ― | |
58 Neutral | $111.64M | ― | -24.87% | ― | -20.12% | -660.05% | |
56 Neutral | $125.98M | ― | -33.15% | ― | -5.73% | 47.83% | |
54 Neutral | $147.14M | ― | -14.88% | ― | 3.59% | -64.21% | |
50 Neutral | AU$1.51B | 2.04 | -28.25% | 3.26% | 16.21% | -7.40% | |
48 Neutral | $159.35M | ― | -90.30% | ― | -78.70% | 13.98% |
* Technology Sector Average
Performance Comparison
ICG
Intchains Group Ltd. ADR
2.86
-4.64
-61.87%
GSIT
GSI Technology
4.62
1.65
55.56%
MX
MagnaChip
4.03
-1.05
-20.67%
QUIK
QuickLogic
6.41
-5.17
-44.65%
ATOM
Atomera
4.76
0.60
14.42%
MRAM
Everspin Technologies
6.74
0.23
3.53%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.