It is planned to control Hefei Warp to enter the field of GPU, and on May 25, the company announced that it intends to change its foreign investment, changing the main body of investment from Warp Technology to Hefei Warp Chaowei Integrated Circuit Co., Ltd. (hereinafter referred to as "Hefei Warp"). Hefei Warp Technology is a newly established wholly-owned subsidiary of Warp Technology. Warp Technology injects all its business and intellectual property rights into the commercial market of video acceleration cards and VPU chips, GPU chips, ADAS chips and other related businesses, and transfers all the labor relations of its core areas and core business personnel to Hefei Warp. The company plans to acquire 50.05% equity of Hefei Warp through equity transfer and capital increase. Hefei Warp will become a holding subsidiary of the company, marking the company's official entry into the field of chip design.
The GPU industry is growing fast and has a large market space. Warp Technology is a new star in the GPU field. Warp Technology has been deeply cultivated in the GPU field for many years, adhering to the application-oriented chip micro-architecture innovation, and providing customers with one-stop service of "customized artificial intelligence core chips, customized dedicated servers, customized data centers". In terms of products, it is mainly the research and development and sales of GPU-like chips (VPU), GPGPU chips and vehicle vision processing chips, which are mainly used in the fields of network security monitoring, data center servers and automatic driving identification. The products have high cost performance advantages. In terms of R & D, Warp has set up R & D centers in Beijing, Shanghai, Hangzhou and Silicon Valley, and has built international advanced computing centers and test platforms. The core R & D team has deep understanding and attainments in the field of chip design and AI algorithms. Warp backbone members all graduated from the top universities at home and abroad, more than 80% of the employees have doctor's and master's degrees, have rich experience in chip design, artificial intelligence research and video processing acceleration, and have been engaged in R & D in related fields for an average of more than ten years. In terms of industry, the growth rate of GPU industry is fast and the market space is large enough. according to the forecast of Huajing Industrial Research Institute, the global GPU market size is 25.41 billion US dollars in 2020, 185.31 billion US dollars in 2027, and 32.82% CAGR in 2020-2027. At present, the global GPU field is in an oligopoly situation, and the domestic alternative space is considerable.
Fuse business into the fast lane in an all-round way, actively embrace emerging industries to promote business upgrading, science and technology deep ploughing circuit security protection for 30 years, fuse product line is rich, complete certification, high customer recognition. Under the background of "double carbon", the prosperity of downstream scenery storage and EV is high, and the company's power fuse products are growing rapidly. according to the company, as of February 2022, the company's power sector orders have increased nearly 7 times compared with the same period last year. In addition, the company introduced a new management team and formulated the XYZ axis development strategy, and jointly set up private equity funds with Hefei Industry guidance Fund in 2021 to invest in Shanghai Super Silicon. The acquisition of Hefei warp is in line with the company's existing business collaborative development direction, for the company's main business collaborative operation, two-way enabling to create value, lay the foundation, and help to improve the company's comprehensive competitiveness.
Profit forecast and rating
As a domestic invisible champion of electronic fuses, the company not only tamps the main business, but also actively arranges emerging industries to promote business upgrading, and the endogenous extension strategy continues to exceed expectations. We maintain the company's 2022-2024 homing net profit forecast of 0.95 million yuan, an increase of 107.5%, 81.4% and 35.0% over the same period last year. The target price remains at 52.31 yuan, and the "overweight" rating is maintained.
Risk tips: the sharp rise in raw material prices, the epidemic continues to exceed expectations, new customer development is less than expected, macroeconomic downturn, the progress of foreign investment and future returns are still uncertain.
