Sichuan Injet Electric Stock Co.,Ltd. (300820.SZ): BCG Matrix [Dec-2025 Updated]

Sichuan Injet's portfolio is a tale of smart capital choreography: booming stars-EV charging and semiconductor power supplies-are gulping capex and R&D to fuel rapid international growth, while robust cash cows in polysilicon power supplies and industrial controllers generate the liquidity that underwrites those investments; two high-upside but underweight bets in energy storage and hydrogen need heavy funding and focus to prove themselves, and legacy low-voltage and general-purpose regulator lines are being wound down or divested to free resources-a strategic mix that will determine whether Injet scales in new high-margin markets or gets stretched thin by diversification.

Sichuan Injet Electric Stock Co.,Ltd. (300820.SZ) - BCG Matrix Analysis: Stars

Stars

EV CHARGING INFRASTRUCTURE GLOBAL EXPANSION

The EV charging infrastructure business is a Star for Injet, contributing ~32% of total corporate revenue by late 2025 and exhibiting a compound annual growth rate (CAGR) of 48% driven by accelerated exports to Europe and North America. Injet holds a 12% share of the mid-to-high-end AC charger export segment from China. Gross margin for this product line is approximately 28%. Management has committed 150 million RMB in capex for automated production line expansion to increase capacity and reduce unit cost.

Key operating and market metrics for the EV charging unit:

Strategic priorities and operational actions for the EV charging Star:

• Scale manufacturing capacity via 150 million RMB automation investment to support projected unit volume growth of 60%+ in 2026.
• Maintain gross margin at ~28% through supply-chain optimization and localized sourcing in target export markets.
• Pursue certifications (CE, UL, etc.) and channel partnerships to protect premium pricing in Europe/North America.
• Allocate dedicated sales and after-sales teams in key markets to capture additional market share from incumbents.

SEMICONDUCTOR POWER SUPPLY IMPORT SUBSTITUTION

The semiconductor power supply division is a Star characterized by rapid revenue growth (55% year-over-year) and import-substitution dynamics. Injet has secured a 15% share of the domestic localized high-end RF power supply market. This segment yields a high gross margin of ~42% and benefits from elevated barriers to entry, including technical know-how, certification, and customer qualification cycles. R&D for this division represents 10% of total corporate R&D spend to sustain technology parity with international suppliers. The Chinese total addressable market (TAM) for specialized power units is estimated at 5 billion RMB by end-2025.

Key operating and market metrics for the semiconductor power supply unit:

Strategic priorities and operational actions for the semiconductor power supply Star:

• Increase targeted R&D spend to protect 42% gross margin and accelerate product qualification cycles with domestic foundries.
• Exploit import-substitution tailwinds by expanding direct OEM relationships and government procurement channels.
• Invest in quality assurance and long-term service contracts to raise switching costs for customers and defend the 15% market share.
• Monitor TAM expansion to capture incremental share as the market approaches 5 billion RMB, prioritizing high-margin customization projects.

Sichuan Injet Electric Stock Co.,Ltd. (300820.SZ) - BCG Matrix Analysis: Cash Cows

Cash Cows - Photovoltaic Polysilicon Power Supply Dominance: The industrial power supply segment for polysilicon production holds a dominant 70% domestic market share and contributes 45% of Sichuan Injet Electric's total annual revenue. Annual revenue from this segment is approximately CNY 1,080 million (based on consolidated revenue of CNY 2,400 million), with net profit margins stable at 22% (net profit ≈ CNY 237.6 million). Market growth for polysilicon equipment is mature at ~4% annually. Capital expenditure requirement for this division is minimal, representing under 8% of segment revenue (≈ CNY 86 million annually) due to heavily depreciated manufacturing assets. Return on investment (ROI) for the division exceeds 25%, driven by low incremental capital needs and steady replacement-cycle demand that generates predictable recurring sales (replacement cycle frequency estimated every 6-8 years for core equipment).

Cash Cows - Industrial Power Controller Stability: The traditional power controller and regulator business maintains a 20% share of the specialized industrial heating market and contributes roughly 15% of total company revenue (≈ CNY 360 million). Operating margins are sustained at 18% (operating profit ≈ CNY 64.8 million) supported by efficient supply chain management and long-term contracts with industrial customers. Market growth has plateaued at approximately 3% annually. This segment's required annual capital expenditure remains low - below 5% of segment revenue (≈ CNY 18 million) - enabling it to reliably supply working capital for higher-growth divisions such as semiconductor process equipment and EV charging systems.

Key cash-generation implications:

• Photovoltaic polysilicon power supply provides primary liquidity, funding R&D and expansion in semiconductor and charging businesses.
• Industrial power controller segment supplies stable working capital with minimal reinvestment needs.
• Low combined capex burden (weighted average <8% of revenues for cash-cow segments) supports dividend capacity and strategic investments without external financing.
• Moderate market growth (3-4%) implies these units are mature; focus should be on margin maintenance, cost control, and maximizing cash conversion.

Sichuan Injet Electric Stock Co.,Ltd. (300820.SZ) - BCG Matrix Analysis: Question Marks

Dogs quadrant assessment is focused on businesses with low market share in low-growth markets; however, Injet's current 'Question Marks' - energy storage system integration and hydrogen energy power solutions - sit at the intersection of potential high-growth markets but with low relative share, creating ambiguity in classification. This chapter treats these two segments as transitional 'Dogs/Question Marks' requiring strategic choice: invest to convert to Stars or divest to avoid resource drain.

ENERGY STORAGE SYSTEM INTEGRATION

The energy storage integration business contributes under 6% of total corporate revenue (RMB 120 million of RMB 2.0 billion FY latest). Global market CAGR ~35% implies large addressable market expansion; Injet's relative market share is <2% (estimated domestic revenue share RMB 40 million). Capex allocated: RMB 200 million in integrated battery management systems (BMS) and power conversion R&D and pilot manufacturing since 2022. ROI remains negative: cumulative segment operating margin (LTM) -8% and cumulative net present value (forecasted) negative at RMB -30 million at current investment pace.

Key constraints and strategic levers for energy storage:

• Core competency: power electronics and inverter technology - potential to leverage existing manufacturing to reduce unit cost by 12-18% over 24 months.
• Competition: incumbent battery-system integrators and cell manufacturers with vertical integration; price pressure could compress gross margins from current 22% to below 15% without scale.
• Channel: limited national EPC partnerships; conversion to large-scale supply requires 3-5 strategic alliances to reach >10% market share.
• Capital requirement: additional RMB 300-500 million projected to achieve >10% market share within 3 years.

Recommended near-term options (quantified):

HYDROGEN ENERGY POWER SOLUTIONS

Hydrogen production power supplies are in an early-stage, high-growth vertical forecasting ~40% CAGR through 2030. Injet's domestic market share in electrolysis power supplies is ~3% (estimated revenue RMB 60 million of addressable domestic segment ~RMB 2.0 billion). Current gross margin suppressed at 15% due to high customization and engineering overheads. R&D intensity for this segment exceeds 12% of segment revenue (RMB 7.2 million annually). Pilot projects secured: 8 commercial pilots and 3 government demonstration programs. EBITDA contribution remains marginal; segment-level EBITDA margin (LTM) ~-5% after R&D capitalization adjustments.

Strategic considerations for hydrogen segment:

• Technical challenge: bespoke power electronics for electrolysis require continued R&D to raise gross margin to >20%.
• Market timing: commercialization of green hydrogen depends on policy incentives; downside if subsidies retract.
• Partnership necessity: alliances with electrolyzer OEMs and hydrogen integrators accelerate volume uptake and reduce unit R&D burden.
• Funding burn: sustaining -5% EBITDA requires external financing or reallocation from higher-margin segments to avoid balance sheet strain.

Quantified strategic paths for hydrogen:

Decision triggers and KPIs to reclassify from Dog/Question Mark to Star or to divest:

• Achieve positive segment EBITDA within 24-36 months.
• Raise relative market share above 10% domestically for either segment.
• Reduce customer-specific engineering costs to below 8% of segment revenue.
• Secure long-term supply contracts totaling >RMB 500 million cumulative order book.
• Demonstrate unit cost reduction trajectory of 10-20% year-on-year via scale or technology.

Sichuan Injet Electric Stock Co.,Ltd. (300820.SZ) - BCG Matrix Analysis: Dogs

Dogs - LEGACY LOW VOLTAGE COMPONENTS

The legacy low voltage component business contributes 4% of consolidated revenue (FY2024 revenue base: RMB 3,200 million; segment revenue: RMB 128 million). Market CAGR is -2% (3-year trend). Gross margin compressed to 10% vs. corporate average 28%. Operating margin is approximately 1.5%; EBITDA margin ~4%. Annual capex allocated to the segment is 0.2% of total capex (RMB 0.6 million vs. group capex RMB 300 million). Inventory turnover is 3.2x; DSO ~68 days. Customer concentration low: top 5 customers account for 22% of segment sales. R&D spend on this unit has been reduced to <0.5% of total R&D (RMB 0.2 million per year).

Strategic posture for legacy LV components is managed withdrawal; options being executed or evaluated include:

• Phase-out program with inventory depletion target within 18-24 months.
• Selective divestment: market outreach to specialized buyers and distributors with transaction target EV/Revenue multiple range 0.1-0.3x.
• Harvest strategy: maintain minimal production for existing warranty/service obligations while eliminating new customer acquisition.
• Cost reduction: target gross margin improvement to 12% through SKU rationalization and supplier renegotiation within 12 months.

Dogs - GENERAL PURPOSE POWER REGULATORS

General purpose power regulators account for <1% market share in the industrial automation market; estimated segment revenue RMB 18 million (0.6% of group revenue). Segment revenue growth ~1% (FY2022-2024). Return on Assets (ROA) has declined to -1.2%, below weighted average cost of capital (WACC ~8.0%). Price competition from low-cost domestic OEMs has driven ASP compression of ~18% over 2 years. Gross margin stands at 8%; net margin negative at -2%. Working capital cycle elongated: inventory turnover 2.1x; DPO compressed to 22 days. The unit consumes ~0.8 full-time-equivalent (FTE) management overhead and ~3% of product management resources.

Management options under evaluation for general purpose regulators:

• No expansion: freeze product roadmap and redirect R&D and sales resources to semiconductor and EV charging divisions.
• Divestiture or asset sale: target offers from contract manufacturers and domestic consolidators; acceptable valuation floor set at 0.5-1.0x segment revenue given negative profitability.
• Outsource manufacturing: shift to toll-manufacturing or ODM to reduce fixed cost and convert cost base to variable, targeting gross margin improvement to 11%.
• Customer exit strategy: terminate low-margin contracts with 6-12 months notice to reduce working capital drag.