For many years, the domestic aerospace electronics and satellite big data leading enterprise company is Zhuhai Obit Aerospace Technology Co., Ltd., which is the first IC design company to land on China's gem. The company's main business is divided into aerospace electronics, satellite and satellite big data, artificial intelligence three plates. Products (embedded SOC chip, stereo package SIP module / system, artificial intelligence module / chip / system, etc.) serve many fields such as aerospace, satellite big data, geographic information and so on.
In 2020, the company turned its net profit from loss to profit and ushered in a performance inflection point. Under the influence of the epidemic in 2020, the company's performance still maintained a high growth trend, with an annual operating income of 870 million, + 2.13% compared with the same period last year, and a net profit of 108 million yuan, turning losses into profits. The performance of 2021H1 has improved steadily, and the boom cycle of the multi-index industry is coming. The company released the mid-2021 report, during which the company achieved operating income of 329 million yuan (year-on-year-3.70%), net profit of 33 million yuan (+ 3.33%), and net profit of 23 million yuan (+ 23.50%) after deducting non-return.
SoC/SiP core provider, fully benefiting from the new infrastructure construction of satellite Internet, there is a big gap in the level of global Internet access: by 2018, more than half of the population is below 3G or there is no Internet coverage.
We believe that Leo satellite Internet constellation is the core solution to achieve global interconnection, which can achieve high-bandwidth, high-performance global coverage, portable / embedded terminals, low-cost, marginal-cost global interconnection services. China has started the construction of launch capacity, carrying capacity and satellite manufacturing capacity to build the foundation of large-scale constellation network. According to our estimates, 1 or 2 world-class satellite Internet enterprises may be born in China, and 12000 of them may be put into orbit by the end of the 16th five-year Plan. It is estimated that the total output value of China's satellite Internet from 2021 to 2035 may reach 933.77 billion US dollars (6.116194 trillion RMB).
In the manufacturing side of constellation components, Obit has been ploughing for more than 20 years, and has become the flagpole enterprise of China's high-end aerospace SPARC V8 processor SoC and the pioneer of three-dimensional packaging SIP aerospace modules / systems. The two major products have reached the leading level of technology. To sum up, as the listing platform of Zhuhai State-owned assets Supervision and Administration Commission, taking into account its technical level and customer quality, we believe that the company's SOC, SIP, EMBC and other products will fully benefit from the new satellite Internet infrastructure construction, and the performance is expected to be greatly improved.
Artificial intelligence industry empowers, corresponding to the product or enter the fast release period AI chip refers to the processor chip used to run AI algorithm, it needs to have strong parallel processing ability to support AI programs based on deep learning algorithm. According to the China Industry Information Network, the global AI computer chip market grew rapidly from 2019 to 2025, and the global AI computer chip market in 2020 was 6.2 billion US dollars, an increase of 37.78 percent over the same period last year; the global AI computer chip market is expected to reach 8.5 billion US dollars in 2021, an increase of 37.10 percent over the same period last year; and the global AI computer chip market is expected to reach 30 billion US dollars in 2025.
The company AI industry depth layout, at present already has the profound technical background. In terms of intelligent chips, the company has developed the first generation of artificial intelligence image processing AI modules, face recognition intelligent terminals and other artificial intelligence products, which can provide safe and efficient core components for the majority of face recognition equipment providers and system integrators. In terms of artificial intelligence algorithms, the company is committed to the research of artificial intelligence algorithms to solve the current situation of traditional remote sensing data processing industries such as strong artificial dependence and low processing efficiency. To sum up, we believe that the company's deep layout of artificial intelligence business areas, corresponding to artificial intelligence chips, artificial intelligence algorithms already have a deep technical foundation, and it is expected that the corresponding products will achieve rapid volume with the high economic cycle of the industry.
Profit forecast and rating: to sum up, we believe that the company's SOC, SIP, EMBC and other products will fully benefit from the new satellite Internet infrastructure construction, and the performance is expected to be greatly improved. At the same time, the company continues to focus on surveying and mapping + remote sensing satellite big data + artificial intelligence deep integration, satellite big data business may achieve accelerated production scheduling. Under this assumption, it is estimated that the operating income of the company in 2021-23 will be 1.99 billion yuan, the corresponding return net profit is 1.12 million, the corresponding EPS is 0.16, 0.18, and the corresponding PS is 6.71, 5.89, 5.07x. For the 2021 forecast PS of Standard comparable Company 9-11x, the corresponding target price range is 11.89-14.54 yuan per share, giving a "buy" rating for the first time.
Risk tips: technical risk; management risk; market expansion risk; brain drain risk, goodwill impairment risk and so on.