Yachuang Electronics: the automotive semiconductor distribution giant ploughs the self-research market of automotive chips. Actronic is a well-known authorized distributor and self-developed IC designer of electronic components in China, mainly engaged in the distribution of electronic components in the automotive field and the design business of power management IC. In 2021, the income was 1.42 billion yuan and the net profit was 90 million yuan. In the first three quarters of 2022, the company realized income of 1.63 billion yuan and net profit of 120 million yuan.
Automotive analog chip business: endogenous epitaxy into a rapid growth channel. (1) Endogenesis: the company's power management chip products are used in the field of automotive electronics. The existing products cover motor drive IC, LED drive IC, LDO, DC-DC. The related products that the company has mass-produced have passed the AEC-Q100 vehicle specification certification and successfully introduced into the supply chain system of automobile brands. And to Hyundai, Kia, Chrysler, Volkswagen, SAIC, FAW, Geely, Great Wall, BYD, XPeng Inc., ideal and other well-known manufacturers at home and abroad to achieve mass shipments. (2) denotation: in 2022, the company acquired 60% of the shares of Ouchuangxin with 240 million yuan in cash. Ouchuangxin is an analog chip developer, whose main products are LED-driven IC, DC-DC and MCU, which are mainly used in automotive lamp afterloading market, electric car market, furniture lighting market and other fields. Ouchuangxin promises to make a net profit of not less than 2700, 3000 and 33 million yuan in 2022-2024.
Semiconductor distribution business: automotive electronics accounts for 70% and profitability is significantly higher than the industry average. (1) Endogenous:
Actronic mainly distributes products from Toshiba, Seoul Semiconductor, Murata, Panasonic, LG and other enterprises. The company is a domestic distributor focusing on the field of automotive electronics, and nearly 70% of its sales revenue comes from automotive electronics. The distribution products include optoelectronic devices, memory chips, passive components and discrete semiconductors, which are mainly used in automotive lighting and automotive cockpit fields. the main customers include Yanfeng Visteon, Yigatong, Jinlao, Valeo, Hyundai Mobis and other domestic and foreign automotive electronic parts manufacturers. The company's distribution business is characterized by "supply chain service + technical service", which can provide customers with electronic components selection and matching services, product application solutions and other technical support services. it can charge customers a technical service fee of more than 10 million yuan a year.
Therefore, the gross profit margin of the company's business is about 13-15%, which is significantly higher than the gross profit margin of 7-8% for enterprises such as Huaqiang in Shenzhen. (2) extension: the company bought 55% of Yihaineng for 117 million yuan to expand the passive components market. Yihaineng promised to achieve net profits of not less than 2000 yuan, 2150 yuan and 22.5 million yuan respectively in 2022-2024.
Profit forecast, valuation and rating: we expect the company's return net profit from 2022 to 2024 to be 1.76,2.66 and 371 million yuan, with the current market capitalization corresponding to PE 29x/19x/14x. Under the background of the continuous improvement of the prosperity of the automotive electronics market, the company simulates the two major IC design and distribution businesses to achieve rapid growth through endogenesis and epitaxy, with huge room for growth in the future, giving a "buy" rating for the first time.
Risk tips: the risk of a decline in the automobile market; the risk of impairment of goodwill.
