Investment summary
The company is a leading enterprise in the field of domestic security chips, and its products have been tested in the market for many years, and at the same time, with years of supporting experience with major customers, with the continuous introduction of new products, the company has made a breakthrough from ISP to IPC products. At the same time, after the acquisition of Mou core technology, it also has the supply capacity of back-end DVR/NVR chips to achieve complete coverage of the front and back product lines. With close cooperation with Haikang, Dahua and other major customers, the company's market share has increased rapidly. at the same time, the company has actively expanded from professional security to intelligent hardware and automotive electronics, and the market space has been gradually opened.
Intelligence and high definition have become a new trend in the field of professional security. As the leader in the field of professional security chips in China, the company quickly grabs market share in the post-Hayes era by virtue of multiple advantages. China is the world's major security and video surveillance market, the rapid development of the industry, providing a lot of demand for the upstream parts industry. In terms of supply side and industry trend, HD has become an obvious trend of video surveillance equipment, and the demand for intelligent products continues to improve, which puts forward new requirements for upstream chips and other core components. In terms of the company's competitive advantage, through years of research and development and mergers and acquisitions of Mou core technology, the company's security products have formed front-end and back-end collaboration, and all levels of product lines can fully meet the multi-level needs of customers. provide complete one-stop solution supply capacity, comprehensive competitiveness is significantly enhanced.
There is a broad space for the future development of intelligent hardware, and the company has successfully introduced related fields. With the popularity of the Internet of things and other technologies, smart home and other smart hardware market is developing rapidly, smart cameras and other devices as important components of smart hardware will also usher in new development prospects. At present, the company has created a relatively complete smart family overall solution, and established a deep cooperative relationship with downstream customers, and is expected to fully enjoy the development dividend of the industry.
Driven by self-driving and car networking, automotive electronics has a bright future and is expected to become a new growth point for the company in the future. Automotive electronics plays a more and more important role in vehicle manufacturing in recent years, especially in the context of self-driving and vehicle networking, automotive electronics is an indispensable part.
With the development of self-driving technology and the popularity of vehicle networking, the automotive electronics market will expand rapidly. At present, the company has been the first to expand the original products to the field of automotive electronics, and will be able to fully grasp the opportunities brought about by the development of the industry in the future.
Investment suggestion
For the first time, coverage gives a "buy" rating. We estimate that the company's homing net profit for 2022-24 will be 5.31max 7.21 / 944 million, an increase of 45.9%, 35.9% and 30.9% over the same period last year, corresponding to an EPS of 2.32pm, 3.15pm, 4.12pm, 22-24, and PE valuation of 26.6max 19.6max 15.0. As the leading enterprise of domestic security chip, the company has continuously improved its industrial line, launched new products and rapidly increased its market share, giving it a "buy" rating.
Risk hint
The company's R & D is not as expected, the wafer production capacity is not as expected, and the company's customer concentration is high.