Domestic household appliances MCU leader, to lithium battery management, OLED display driver expansion. The company was founded in 1994, the management has United Microelectronics, Lianyong technology working background, the main products are MCU, lithium battery management and display driver chips, the company is in an industry-leading position in small household appliances MCU, and gradually expand to white MCU, while constantly expanding lithium battery management and OLED display driver business.
MCU: expand from small household appliances to white electricity. The company has been in the forefront of the industry in the field of small household appliances MCU, while there is a large space for domestic substitution in the field of white MCU. In 2021, Zhongying Electronics has made a mass production breakthrough in the field of frequency conversion large household appliances, and the company's market share in white MCU is expected to increase. In addition, the first gauge-grade MCU will be launched in the second half of 2022 and is planned for marketing in the fourth quarter.
Lithium battery management: cut into the preloading market. The company's lithium battery management chip has cut into the mobile phone, TWS headset and notebook pre-installation market, in mobile phone and TWS headset lithium battery management application has been mass production in a number of domestic brands, notebook has also been recognized and mass production, electric bicycle lithium battery management chip has gradually achieved a certain share, lithium battery management chip business is developing rapidly.
OLED display driver: expand to the mobile phone brand front market. According to CINNO Research, the domestic OLED driver chip market is about 900 million US dollars in 2021, and it is expected that the domestic OLED driver chip market CAGR will reach 38% from 2021 to 2025. In 2021, the company's AMOLED display driver chip sales grew several times compared with the same period last year. At the same time, the company's AMOLED display driver chip designed for brand mobile phones has been completed, and the follow-up verification will be given to customers. OLED display driver business is expected to maintain rapid growth.
Investment suggestion: it is estimated that the operating income of the company from 2022 to 2024 is 20.02,25.98 and 3.298 billion yuan respectively, and the net profit is 5.13,6.42 and 824 million yuan respectively. Considering that the company's market share in Baidian MCU has room to improve, lithium battery management and OLED display drivers have made steady progress, giving 2022 40 times PE, corresponding to the target price of 60.02 yuan, with a "buy" rating for the first time.
Risk tips: customer expansion falls short of expectations, industry competition intensifies, and semiconductor industry fluctuates periodically.