20H1 revenue reversed the market and grew. In the first half of 2020, the company leveraged its many years of experience and advantages in wireless transmission-related products, combined with market application requirements, and continued to upgrade and iterate the company's various series of products to achieve product sales revenue of 329 million yuan. Under the adverse effects of the outbreak of the epidemic on domestic and foreign markets in the first half of the year, 20Q2 achieved 11.24% revenue growth. We infer that the company's WiFi, TWS chips and other products contributed. The automotive-grade chip has been tested by an international third party, and it is expected that subsequent companies will benefit from the explosion of the front-mounted ETC market. In the field of ETC front assembly, the company has accumulated many years of technology and product advantages that have quickly penetrated. The relevant automotive-grade chip products have obtained vehicle standard testing certification from an international third-party laboratory, making it the first ETC SoC chip in China to pass this certification. We judge that subsequent ETC front equipment will become an industry trend, and the company is expected to benefit. The progress of ongoing research projects is worth watching. In the first half of 2020, the company continued to maintain a high level of R&D investment. The company's R&D expenses amounted to 41.285 million yuan, accounting for 12.50% of sales revenue during the same period. Judging from the government subsidy projects disclosed in the company's 20H1 semi-annual report, active noise cancellation (ANC) headphone audio chip development and industrialization projects, and low-power WiFi SOC projects are worth paying attention to. We expect subsequent active noise cancellation headphone chips, WiFi, etc. to become important growth drivers for the company. Profit forecast. We estimate that the company's EPS will be 1.80, 2.57, and 3.50 yuan/share from 2020 to 2022, respectively. Considering that the company already had a significant profit volume in 2019, we used the range obtained by the PE (2020) valuation method as a reasonable value range for the company and verified it in conjunction with the PS (2020) valuation. We predict that the reasonable value of the company is 108.00 to 126.00 yuan/share, maintaining the “superior to the market” rating. Risk factors. Increased competition in the market may put price pressure on the company's products.