China's leading provider of IC products and IC solutions. The company was founded in 2000 and successfully issued A shares in 2015 and listed on the Shenzhen Stock Exchange. The company's main business includes wireless communication chips, radio frequency components, sensor chips, digital-analog mixed signal chips and so on. The company has a high-quality customer base in its key business areas, customized design capabilities and self-research and design capabilities for special chips for market segments.
Automotive electronic distribution business will meet the volume. Industrial control, automotive electronic distribution business continues to grow. Under the guidance of urban digitization and new energy industry policy, the demand for chips in the domestic market will maintain strong growth. According to the data of China Semiconductor Industry Association, the market size of China's integrated circuit industry is expected to reach 1.2331 trillion yuan in 2022. The company maintains a good cooperative relationship with the international leading IC designers and manufacturers, has a wide range of customer resources accumulation and strong stickiness, stable business and profits. Benefiting from the promotion of industrial policy and the rapid development of new energy automotive electronics, the company began to expand in the field of automotive electronics in its traditional distribution business.
Self-research + customized IC business is expected to break out. The business of self-research and customization of chips is expected to break out. The company has always maintained high R & D and capital investment in the field of semiconductor design, and its (Shanghai Lingang) Chuangxin microelectronics business has entered mass production. In the first half of 2022, the company's "custom and self-developed chip" business achieved a total sales of 32.7414 million yuan, indicating that the company took a solid step towards semiconductor chip design and domestic substitution. The company's cooperation with Midea, BABA and other customers such as intelligent appliance control, ultra-low power BLE chips and vehicle specification-level ADC chips, ADB adaptive headlight control chips may become the company's new profit growth point.
Investment suggestion: from 2022 to 2024, the company is expected to achieve 2.920 million yuan in revenue of 2.095 billion yuan and 0.68 billion yuan in net profit corresponding to the return to the mother, 50.75x/47.54x/44.72xPE. With reference to the valuation of comparable companies, consider that the company's customized business volume is just around the corner, and give the company an "overweight" rating.
Risk tips: core business staff turnover risk, supplier change risk, inventory and price decline risk and so on.
