This report is read as follows:
Automotive MCU chips meet the explosive growth, Power architecture replaces overseas mainstream automobile MCU manufacturers, and there is a huge space for localization. Automotive intelligence will bring a huge incremental market for automotive MCU chips, and the company is expected to continue to grow at a high level.
Main points of investment:
Maintain the "overweight" rating with a target price of 86.00 yuan. The company car regulation MCU accelerates the volume, the new product unceasingly breaks through, the domestic substitution space is huge, maintains its estimated EPS for 2022-2024 is 0.85 Universe 1.72 Universe 2.69 yuan. Considering the blank of localization in the field of automobile MCU, it will be given 50 times PE in 2023 to maintain the target price of 86.00 yuan and maintain the "overweight" rating.
Customized chips and IP authorization and other major national demand business confirmed at the end of the year, the full project in hand is expected to continue high growth throughout the year. The company announced 3Q22 performance forecast that 3Q22 is expected to achieve revenue of 108 million to 118 million yuan in a single quarter, down 12.9% to 4.8% over the same period last year, and net profit from 0.33 to 39 million yuan, an increase of 18.2% over the same period last year. In the company's business structure, "chip customization service" and "IP authorization" account for a relatively high proportion. 1H22 revenue accounts for 40.4% and 19.5% respectively, accounting for a total of 60%. This business is mainly in the area of national major demand, which is G-side or large B-end customers, and the receiving pace is usually confirmed for half a year or one year. It is expected that orders in this area will be confirmed in Q4 at the end of the year. As of 1H22, the company has accounts receivable of 294 million yuan, of which 261 million yuan is one-year account. there are sufficient development projects, and the annual performance is expected to continue to grow at a high level.
The car MCU shipped smoothly, and the MCU of five categories and ten different positioning vehicles is expected to be fully launched in 2023. The company's automotive MCU chips are all based on Power architecture, open source architecture, no licensing and other risks, with an independent and controllable underlying security foundation. 3Q22 has shipped more than one million body control chips, some of which are used in high safety requirements such as airbag ASIL-D. The competitive advantage of automotive MCU business is clear and the business inflection point is prominent.
Catalyst. National major demand projects are full; automobile major customer breakthrough; new product development.
Risk hint. The customization project is delayed; the demand for automobile MCU fluctuates; Sino-American friction.