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Intchains Group Ltd. ADR (ICG)
NASDAQ:ICG
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Intchains Group Ltd. ADR
(NASDAQ:ICG)
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Rating:59Neutral
Price Target:―
Intchains Group Ltd. is experiencing strong financial growth and has a promising outlook due to product innovations and strategic focus. However, significant cash flow challenges and bearish technical indicators present notable risks. The stock is reasonably valued but lacks a dividend yield, which may deter income investors.
Positive Factors
Revenue Growth
The significant year-over-year revenue growth indicates strong demand for Intchains' products, showcasing its ability to capture market share and drive sales in a competitive industry.
Product Innovation
The introduction of new products like the Aleo series mining product demonstrates Intchains' commitment to innovation, potentially enhancing its competitive edge and supporting future revenue growth.
Strong Balance Sheet
A robust balance sheet with high equity and low leverage provides Intchains with financial stability, enabling it to invest in growth opportunities and weather economic uncertainties.
Negative Factors
Cash Flow Challenges
The lack of positive cash flow raises concerns about Intchains' ability to sustain operations and fund growth without relying on external financing, which could impact long-term viability.
Gross Margin Decline
A decline in gross margin suggests challenges in maintaining profitability, particularly if sales of lower-margin products continue to increase, potentially affecting overall financial performance.
Market Pressure
Market pressures from economic uncertainties can dampen demand for Intchains' products, impacting revenue and profitability, especially given the company's reliance on the volatile cryptocurrency sector.
Intchains Group Ltd. ADR (ICG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$95.39M
Dividend YieldN/A
Average Volume (3M)153.88K
Price to Earnings (P/E)33.9
Beta (1Y)1.24
Revenue Growth63.66%
EPS Growth-17.23%
CountryUS
Employees133
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.04
Shares Outstanding28,375,372
10 Day Avg. Volume134,436
30 Day Avg. Volume153,875
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)0.71
Price to Sales (P/S)2.56
P/FCF Ratio-4.87
Enterprise Value/Market Cap0.41
Enterprise Value/Revenue0.13
Enterprise Value/Gross Profit0.27
Enterprise Value/Ebitda10.09
Forecast
1Y Price Target
$5.00Price Target Upside254.61% 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:Aug 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted the company's strategic growth in ETH holdings and innovative product launches, while also addressing challenges such as decreased revenue and external market impacts. Despite the operational loss, the company's strong cash position and strategic focus on long-term growth through R&D and yield strategies provide a balanced outlook.Q2-2025 Updates
Positive Updates
Growth in ETH Holdings and Gains in Value
The company increased its holdings of ETH-based cryptocurrencies by 1,793 units since Q1 2025, with ETH prices rising by around 34% during the period, leading to a gain in fair value of cryptocurrencies of RMB 42.8 million or $6 million.
Strong Cash Position and Low Liabilities
As of June 30, 2025, the company had a strong cash position of $71.6 million, with current assets at $94.5 million and total liabilities of just $4.6 million.
Launch of New Products and Strategic Investments
The company launched new products, including six major Aleo mining series and the Goldshell Byte dual-mining machine, and invested $5.8 million in R&D to strengthen its technology leadership.
ETH Yield Generation Strategy
The company aims to optimize ETH acquisition and yield strategies, expecting an increased annualized yield on ETH holdings potentially as high as 10%.
Negative Updates
Decline in Revenue and Operating Loss
Revenue for Q2 2025 was RMB 43.2 million or $6 million, impacted by lower sales from mining machines compared to Q2 2024. The company recorded a loss from operations of RMB 16.2 million or $2.3 million for Q2 2025, compared to income from operations of $8 million for Q2 2024.
Impact of External Factors on Sales
Sales were negatively impacted by the decline in Aleo price, newly imposed short-term tariffs, and delayed machine exports. These factors led to lower revenue from mining machines.
Impairment Charge and Decreased Interest Income
The company recorded an impairment charge related to excess mining machine inventory, and interest income decreased to RMB 3.1 million or $0.4 million due to cash used in acquiring ETH-based cryptocurrencies.
Company Guidance
During the Intchains Group Limited Second Quarter 2025 Earnings Conference Call, the company provided guidance indicating a focus on long-term growth strategies despite facing revenue challenges in the short term. Revenue for Q2 2025 was reported at RMB 43.2 million ($6 million), a decrease from Q2 2024 due to lower sales in mining machines affected by external market conditions and newly imposed short-term tariffs. The company emphasized the importance of its ETH accumulation strategy, reporting a 1,793 ETH unit increase since Q1 2025, with ETH prices up by 34% in the period, resulting in a gain of RMB 42.8 million ($6 million) from cryptocurrency holdings. Intchains aims to enhance its ETH yield generation strategy, targeting an annualized yield of up to 10%. For the first half of 2025, revenues were RMB 175.6 million ($24.5 million), while net income stood at RMB 4.3 million ($0.6 million). The company's balance sheet remains robust, with a cash position of $71.6 million as of June 30, 2025. Looking forward, Intchains plans to continue investing in R&D to drive product innovation and is set to launch new mining products, including a state-of-the-art Dogecoin miner anticipated to enter mass production in early 2026.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 | 310.07M | 281.77M | 82.22M | 473.74M | 631.84M | 54.60M |
| Gross Profit | 145.86M | 151.31M | 9.08M | 386.72M | 517.88M | 31.27M |
| EBITDA | 3.84M | 55.22M | -31.66M | 324.51M | 447.87M | 9.10M |
| Net Income | 20.19M | 51.50M | -26.80M | 355.20M | 450.14M | 8.25M |
Balance Sheet | ||||||
| Total Assets | 1.06B | 1.09B | 979.25M | 953.13M | 611.26M | 43.90M |
| Cash, Cash Equivalents and Short-Term Investments | 491.73M | 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 | 32.92M | 76.44M | 28.93M | 19.53M | 32.86M | 9.71M |
| Stockholders Equity | 1.03B | 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
Negative
1.41
Price Trends
1.79
Negative
2.07
Negative
2.60
Negative
Market Momentum
-0.11
Positive
31.11
Neutral
7.71
Positive
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 1.41 is below the 20-day moving average (MA) of 1.67, below the 50-day MA of 1.79, and below the 200-day MA of 2.60, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 31.11 is Neutral, neither overbought nor oversold. The STOCH value of 7.71 is Positive, 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 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $108.43M | ― | -0.82% | ― | -0.81% | -117.62% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $95.39M | 33.91 | 2.03% | ― | 63.66% | -17.23% | |
55 Neutral | $282.43M | -17.05 | -36.97% | ― | 6.14% | 1.71% | |
50 Neutral | $115.32M | -14.75 | -28.91% | ― | -25.90% | -459.91% | |
49 Neutral | $110.29M | -3.30 | -7.81% | ― | 4.09% | 9.30% | |
42 Neutral | $82.11M | -2.20 | ― | ― | 28.31% | -239.16% |
* Technology Sector Average
ICG
Intchains Group Ltd. ADR
1.41
-2.81
-66.59%
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3.07
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-33.84%
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QuickLogic
7.02
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1.47
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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.