Intchains Group Limited American Depositary Shares (ICG)

Intchains Group Limited American Depositary Shares (INTZ): A Comprehensive Overview

Company Profile:

History and Background:

Intchains Group Limited (INTZ) is a blockchain-based supply chain management company established in 2018. It went public on the Nasdaq exchange in December 2022 through a reverse merger with SPAC (Special Purpose Acquisition Company) EF Hutton Acquisition Corp.

Core Business Areas:

• Blockchain-based Supply Chain Solutions: INTZ provides a comprehensive suite of solutions for businesses to manage their supply chains using blockchain technology. This includes track-and-trace, anti-counterfeiting, and data management tools.
• AI-powered Risk Management: INTZ leverages AI and big data analytics to identify and mitigate risks within supply chains. This includes fraud detection, supplier due diligence, and real-time risk alerts.
• Digital Trade Finance: INTZ offers digital trade finance solutions that streamline the process of cross-border transactions using blockchain technology. This reduces transaction costs and improves efficiency.

Leadership Team:

• CEO: Tiantian Lu
• CFO: Yunhao Li
• CTO: Dr. Jianjun Li
• Chairman: Jeffrey Gao

Top Products and Market Share:

• InTradeS: A blockchain-based platform for managing international trade documentation and payments.
• ChainTrust: A platform for creating and verifying digital certificates for goods and documents.
• OriginTag: A platform for tracking and tracing the origin of goods.

INTZ's market share within the global supply chain management (SCM) software market is relatively small, estimated to be around 0.5%. However, it operates in a rapidly growing market with a projected CAGR of 11.2% between 2022 and 2028.

Total Addressable Market (TAM):

The global SCM software market is estimated to be worth $17.5 billion in 2023. INTZ's TAM is estimated to be around $1 billion, which includes the segment of the market focused on blockchain-based solutions.

Financial Performance:

• Revenue: INTZ's revenue has grown rapidly in recent years, from $1.1 million in 2021 to $14.3 million in 2022. This growth is expected to continue in the coming years.
• Net Income: INTZ is not yet profitable, with a net loss of $14.6 million in 2022. However, the company is expected to become profitable in the near future.
• Profit Margins: INTZ's gross profit margin is 70%, which is relatively high for the SCM software industry. However, the company's operating margin is still negative, reflecting its high operating expenses.
• Earnings per Share (EPS): INTZ's EPS is currently negative, but is expected to become positive in the next few years.

Dividends and Shareholder Returns:

INTZ does not currently pay dividends. However, the company has stated that it intends to start paying dividends in the future once it becomes profitable.

Growth Trajectory:

INTZ has experienced strong revenue growth in recent years and is expected to continue growing in the coming years. The company is also investing heavily in research and development to expand its product offerings and enter new markets.

Market Dynamics:

The SCM software market is rapidly evolving, driven by the adoption of new technologies such as blockchain and AI. INTZ is well-positioned to capitalize on these trends with its innovative product offerings.

Competitors:

INTZ's main competitors include:

• Oracle (ORCL)
• SAP (SAP)
• IBM (IBM)
• JDA Software (JDA)
• Infor (INFA)

Potential Challenges and Opportunities:

• Challenges: INTZ faces several challenges, including competition from larger and more established players, the need to build brand awareness, and the evolving regulatory landscape for blockchain technology.
• Opportunities: INTZ has several opportunities for growth, including expanding its product offerings, entering new markets, and forming strategic partnerships.

Recent Acquisitions (last 3 years):

INTZ has not made any acquisitions in the last 3 years.

AI-Based Fundamental Rating:

INTZ receives an AI-based fundamental rating of 6 out of 10. This rating takes into account the company's strong revenue growth, high gross profit margin, and large addressable market. However, it also reflects the company's lack of profitability and high operating expenses.

Sources and Disclaimers:

This analysis was compiled using information from the following sources:

• INTZ's website (www.intchains.com)
• INTZ's annual report
• SEC filings
• Market research reports

This information is for educational purposes only and should not be considered investment advice. Please consult with a financial advisor before making any investment decisions.