This report is read as follows:
The company is deeply engaged in automotive simulation IC, and has developed a number of products such as DCDC, LDO, LED-driven IC and so on. With the continuous expansion of product categories, it is expected to fully benefit from the wave of automobile intelligence in the future.
Main points of investment:
Maintain the "overweight" rating and lower the target price to 88 yuan. Taking into account the downward cycle of the industry, the annual EPS in 22-23-24 was lowered to 2.20 / 3.11 / 3.98 (the previous value 3.72 yuan). Taking into account the average valuation level of the industry, the company was given 40 times PE in 22 years, lowering the target price to 88 yuan and "increasing" the rating.
The company is the leading designer of IC in China, and its products are recognized by customers. The company is the leading domestic power management IC designer, and has developed DCDC, LDO, LED-driven IC and other products, and successfully entered Geely, Great Wall, Changan, BYD, Hyundai, FAW, Kia, Chrysler, Volkswagen, XPeng Inc., ideal and other domestic and foreign well-known automobile manufacturers, through Tire1 or Tire2 to achieve batch shipment.
The domestic substitution rate of IC is low, and the company is highly competitive. According to Frost&Sullivan statistics, the global automotive chip market as a whole is monopolized by international giants such as Europe and the United States. The domestic power management IC market is similar to the global situation, the main participants in the market are still mainly European and American manufacturers, accounting for more than 80% of the market share. The company's products have stronger application, can directly meet the needs of customers, and have the ability to compete directly with international manufacturers.
The company's distribution business focuses on automotive electronics and is expected to grow for a long time in the future. The company distributes products including optoelectronic devices, memory chips, passive components and discrete semiconductors, which are used in the field of automotive lighting and cockpit. The main customers include Yanfeng Visteon, Yijiatong, Jinlao, Valeo, Hyundai Mobis and other domestic and foreign automotive electronic parts manufacturers. After years of development, the company has accumulated a large number of high-quality customers, with the development of automobile intelligence, the company is expected to grow for a long time.
Risk hint. The progress of the new product launch is not as expected, and the downstream demand fluctuates periodically.
