We have been deeply involved in simulation for more than ten years, focusing on high-end categories. Dior Micro was founded in 2010 and is an IC design company focusing on high-performance analog chips. The company adheres to the “full-product business line” coordinated development strategy. The products cover the two categories of signal chain and power management, and are widely used downstream. Currently, the company has more than 1,400 product models, covering simulated major segments. Many of these products are industry-leading in technology.
The company has established cooperation with many well-known end customers, such as OPPO, Xiaomi, Vivo, BYD, Qualcomm, Google, Samsung, Kongli, etc.
Boost automotive applications, and new growth can be expected. The company's layout in the automobile market is mainly divided into three segments. The field of signal chain products includes analog switches and operational amplifiers. Among them, analog switches will expand to high-speed switches, and operational amplifiers will expand to high-voltage, high-precision and high-precision ADC products. Power supply products will be dominated by specialty power supplies, including products such as motor drives, high voltage and low power LDO, and ultra-high PSRR LDO. The lighting field mainly consists of headlights, taillights, and penetrating taillights. The company will follow the direction of products such as automotive socket type LED lamps, high-voltage multi-topology LED automotive intelligent lighting drivers, and highly integrated linear steady current lighting controllers applied to automobile taillights, and strive to become a leading enterprise in automotive lighting chips in China.
A high-quality circuit with analog chips, domestic alternatives welcome a golden opportunity. According to WSTS data, the global analog chip market reached 74.1 billion US dollars in 2021, leading the growth rate of other categories over the next five years. The analog chip industry emphasizes high signal-to-noise ratio, low distortion, low power consumption, high reliability and stability. It does not strictly abide by Moore's Law, but instead focuses on iterative updates of the BCD process. The industry is relatively scattered, with overseas leaders dominating the competitive pattern. Each of the international leaders focuses on segmented fields and provides system solutions aimed at expanding the internal and external aspects of the product matrix, with high technical barriers and high levels of profitability.
Profit forecast and investment advice: We expect the company's 2023E/2024E/2025E revenue of $731/11.01/15.75 billion, YOY +46%/51%/43%; return to mother's net profit of 2.03/332/463 million, YOY +17%/64%/39%, corresponding to PE 47/29/21x. The company has a valuation advantage. First coverage, giving a “buy” rating.
Risk warning: Competition in the downstream market increases risks, and the semiconductor industry's boom falls short of expected risks.