--- title: "IPO Preview | The AB Side of Marvell Technology: The Glory of Entering the Supply Chains of NVIDIA, Qualcomm, and AMD, and the Reality of Ongoing Losses" type: "News" locale: "en" url: "https://longbridge.com/en/news/282791969.md" description: "Majic Electronics has initiated its listing in Hong Kong, becoming the top supplier of inductors for NVIDIA, Qualcomm, and AMD, but still faces ongoing losses. Revenue is expected to be 362 million, 436 million, and 471 million yuan for 2023 to 2025, with adjusted net profits of -23.265 million, -7.178 million, and -2.585 million yuan. The market has questions about its reasonable valuation" datetime: "2026-04-15T06:10:04.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/282791969.md) - [en](https://longbridge.com/en/news/282791969.md) - [zh-HK](https://longbridge.com/zh-HK/news/282791969.md) --- # IPO Preview | The AB Side of Marvell Technology: The Glory of Entering the Supply Chains of NVIDIA, Qualcomm, and AMD, and the Reality of Ongoing Losses Since the outbreak of generative AI in 2023, the AI computing power hardware sector has been experiencing a structural bull market that has lasted for three years in the capital market. Represented by key segments such as optical modules, liquid cooling, and PCBs, a number of leading companies have seen phenomenal price increases, with many benchmark stocks exhibiting astonishing growth. Currently, this industry trend remains strong, with market funds continuously digging deeper into the industrial chain, actively seeking new hardware branches emerging from technological iterations to capture the next round of potential excess return opportunities. In such a market environment, power inductors have gradually entered the investors' sight. As a core passive component that ensures stable power supply to chips, power inductors are expected to become another high-growth segment of market focus under the industrial logic of significantly increased value in AI server units and the resonance of demand from automotive and high-end consumer electronics. As a leading enterprise in the field of advanced process chip power inductors in China, Kunshan Majie Electronics Co., Ltd. (hereinafter referred to as "Majie Electronics") has attracted continuous attention from the market regarding its capitalization process. According to observations by Zhitong Finance APP, Majie Electronics has officially launched its new journey for listing in Hong Kong, having submitted its listing application to the Hong Kong Stock Exchange on March 31, with Ping An Securities (Hong Kong) as the sole sponsor. Data from ZhiShi Consulting indicates that based on the revenue from advanced process chip power inductor solutions in 2024, Majie Electronics ranks first among suppliers headquartered in mainland China and sixth globally. Moreover, Wang Bin, the vice president of automotive sales at Majie Electronics, previously stated that the company is already the number one supplier of inductors for NVIDIA, Qualcomm, and AMD. However, Majie Electronics is still in a state of continuous losses. According to the prospectus, the revenues for Majie Electronics from 2023 to 2025 are approximately RMB 362 million, RMB 436 million, and RMB 471 million, respectively, while the adjusted net profits during this period are approximately -23.265 million, -7.178 million, and -2.585 million. A question arises: how should a company that leads in a niche market, has entered the supply chains of NVIDIA, Qualcomm, and AMD, but has yet to achieve profitability, be reasonably valued? This is worth deep consideration by investors. ## As Gross Margin Continues to Rise, Average Selling Price of Core Business Declines The development history of Majie Electronics is a focused growth story closely tied to the evolution of high-end chips. Established in 2012 in Kunshan, Majie Electronics initially focused on the consumer electronics and IT equipment markets, and later anchored its research and design in high-end electronic components and magnetic materials, laying the foundation for the advancement of its technical capabilities. By 2016, Majie Electronics successfully expanded into the automotive electronics sector, and in 2018, the company made a key strategic decision—launching high-performance power inductors for GPUs, which allowed it to successfully enter the rapidly growing computing power track, paving the way to become a supplier for giants like NVIDIA and AMD. Since then, Majie Electronics has continued to evolve towards miniaturization and specialization, launching miniaturized inductors in 2020 and specifically introducing AI power inductors in 2024, consistently serving the needs of the most advanced chip processes. By this point, the three major application scenarios for Majie Electronics' power inductors have officially taken shape, marking a further opening of the company's growth space In mid-2025, the revenue share of power inductors from MaJi Electronics in consumer electronics, automotive electronics, and high-performance computing is 67.5%, 22.5%, and 9.8%, respectively. Clearly, consumer electronics remains the core area for MaJi Electronics, while the revenue share from high-performance computing scenarios is still low. From the performance perspective, the steady growth in revenue for MaJi Electronics from 2023 to 2025 is mainly attributed to the strong performance of its three major businesses, with revenue from different scenarios achieving continuous growth. In particular, consumer electronics serves as the "ballast" for the company's performance, consistently playing a key role in providing stable support and driving growth. ![fjdz1.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260415/1776221821367534.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) It is noteworthy that the revenue growth logic of MaJi Electronics' three major application scenarios shows significant differences. The consumer electronics and automotive electronics sectors exhibit a "volume increase and price decrease" characteristic, meaning that revenue growth is primarily driven by sales volume, while the average selling price of products continues to decline amid intensified market competition. In contrast, the high-performance computing scenario has achieved "simultaneous volume and price increase," with the average selling price of its products rising from 0.76 yuan in 2023 to 0.88 yuan in 2025, while sales volume also increased from 35.4826 million units to 52.5942 million units during the same period. ![fjdz2.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260415/1776221844775736.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) However, the more analytically valuable aspect is the trend of gross profit margins for each business, which presents an interesting contrast to the revenue growth logic. Despite facing the pressure of "volume increase and price decrease," both consumer electronics and automotive electronics have seen their gross profit margins continue to rise—consumer electronics' gross profit margin increased from 16.1% in 2023 to 22.8% in 2025, while automotive electronics rose from 15.1% to 17%. This is mainly due to the company outsourcing some standardized, labor-intensive processes, effectively improving cost efficiency. ![fjdz3.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260415/1776221870450054.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) In contrast, the high-performance computing business, which experienced "simultaneous volume and price increase," saw its gross profit margin trend move in the opposite direction, significantly declining from 37.6% in 2023 to 21.7% in 2025. This indicates that the price increase of products in this scenario is primarily driven by rising costs of raw materials, and the company has not been able to fully pass on the cost pressure downstream, leading to a squeeze on gross profit margin and a weakening of profitability. Amid this "one rising and one falling," MaJi Electronics has achieved a steady increase in overall gross profit margin—from 17.6% in 2023 to 21.5% in 2025—through structural adjustments in profitability between different businesses. This has also become one of the key reasons for the continuous narrowing of its adjusted net loss ## Multiple Potential Risks Indicate Ongoing Challenges for Company Operations From the performance analysis of Marjay Electronics, it is evident that the company is facing price pressures due to intensified market competition in the consumer electronics and automotive electronics sectors, while in the high-performance computing sector, there are challenges related to cost transmission. However, these are not the only tests on its growth path. In addition, the following potential risks are also worthy of investors' close attention. **First, the significant rise in storage prices has cast a shadow over the consumer electronics industry, and the market's expectations for subsequent shipment volumes are generally pessimistic. As the consumer electronics sector is an important source of revenue for Marjay Electronics, it may be adversely affected.** Taking smartphones as an example, IDC predicts that global shipments will be approximately 1.1 billion units in 2026, a year-on-year decline of 12.9%, marking the lowest record since 2013. At the same time, the agency believes that while the smartphone market will stabilize in 2027, shipments will only see a slight increase of 1.9%, with significant recovery not expected until 2028. The shipment trends in other segments such as personal computers, tablets, and gaming consoles are similar, all facing challenges of sluggish growth or continued decline. In a fiercely competitive market with a clearly shrinking demand side, the prices of power inductors used in consumer electronics may face significant pressure. **Second, Marjay Electronics has a high customer concentration, which may lead to significant fluctuations in the company's performance.** According to the prospectus, from 2023 to 2025, the revenue from the top five customers of Marjay Electronics accounted for 78.7%, 78.4%, and 70.2%, respectively; among them, the revenue from the single largest customer accounted for 34.1%, 34.7%, and 32.5%. In a highly competitive market, a high customer concentration can weaken the company's bargaining power to some extent. More critically, if demand from major customers weakens, it will have a significant impact on Marjay Electronics' performance. **Meanwhile, the level of competition in the global power inductor market may exceed most investors' expectations.** Although Marjay Electronics ranks first among suppliers headquartered in mainland China based on revenue from advanced process chip power inductor solutions in 2024, and sixth globally, specifically, Marjay Electronics does not hold a high market share worldwide. According to the prospectus, the global market for power inductors used in advanced process chips is highly concentrated, with the top six companies accounting for over 80% of the market share, while Marjay Electronics, ranked sixth, holds only 4.5% of the global market share, facing strong competition from leading companies in Japan and Taiwan. ![fjdz5.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260415/1776221890266299.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) **In addition, relatively insufficient R&D investment may constrain the company's long-term core competitiveness.** Despite being in a rapidly evolving and fiercely competitive power inductor industry, Marjay Electronics' R&D expenditure remains at a low level. The prospectus shows that from 2023 to 2025, its R&D investment will be 25.721 million yuan, 28.828 million yuan, and 28.337 million yuan, accounting for only 7.1% of revenue 6.6% and 6.0%, showing a downward trend year by year. In such a technology-driven market, continuous R&D is key to maintaining product leadership and responding to rapid iterations. If a company gradually falls behind its competitors in technological reserves due to insufficient R&D investment, its long-term competitiveness and value growth potential may be significantly constrained. Overall, Marvell Technology's strengths and weaknesses are quite prominent. As a leader among local manufacturers, its continuous revenue growth and becoming the top supplier of inductors for leading chip manufacturers like NVIDIA, Qualcomm, and AMD are important competitive highlights for the company. However, expectations of weakening demand from the consumer electronics market, high customer concentration, increasingly fierce industry competition, and relatively limited R&D investment all pose constraints on its valuation enhancement. 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