Key points of investment

The front-end and back-end collaborative product layout provides complete video-centered chips and solutions. The company comprehensively lays out downstream application fields, covering application markets such as smart professional video processing, smart IoT, smart car driving, etc., and achieved a major breakthrough in IPC SoC market share. Major customers contribute to an increase in the company's overall revenue.

The penetration rate of intelligence continues to rise, and smart computing power has become standard. In the field of AIoT smart IoT, the company is a video IoT chip strategic partner for the three major operators, providing them with competitive video chip solutions. Inclusive Intelligence broadens the scope of the professional video processing market, and video analysis will bring about market growth.

It has professional vehicle ISP+ analog video link chip+car DVR chip, and a series of vehicle video products and solutions. The company has formed a range of competitive products, from vehicle rear loading to vehicle front loading, and from inside to outside the cabin. A number of chips have passed AEC-Q100 vehicle regulations certification.

At present, the company's automotive chip products have entered mainstream domestic car brands, joint venture car manufacturers, and related Tier 1.

Profit forecast: We expect the company's revenue for 2022-2024 to be 21.0/2,41/30 billion yuan respectively, and the net profit of the mother is 39/46/ 580 million yuan respectively, maintaining the “recommended” rating.

Risk warning: (1) High customer concentration;

(2) New product development and promotion fell short of expectations;

(3) Downstream demand fluctuated greatly.