Note: The company's Q3 revenue and profit declined sharply year over year, and the stock price experienced significant adjustments. However, the company's quarterly revenue has continued to grow month-on-month since this year, and if the impact of last year's large ETC orders is removed, this year's Q3 revenue has also increased sharply year over year. Considering that the company's traditional business has declined to a low point and the new business is gradually growing in volume, we believe that the company's business situation may be at an inflection point. The company recently announced that the four shareholders of Dongjiande Investment, Yihou Limited, Taifeng Hong Kong, and Yaohua Limited (holding a total of 21.41% of shares) have expired and the implementation of the holdings reduction plan has been completed. During the six-month reduction process, they only reduced their holdings by about 1%, and they are still confident in the company's subsequent development. Guoxin Communications's view: We believe that the company's accumulation in the field of radio frequency technology and the design capabilities of wireless communication chips are leading in the domestic market and can fully benefit from the rapid development of the IOT market in the long term. At present, the company's WiFi chips have successfully entered major customers such as Graffiti, benefiting from the integration of home appliance networks for a long time; new TWS chips will soon be put on the market, which will fully enjoy the increase in TWS headphone penetration rate and the wave of chip localization; ETC chips are also expected to usher in a “second spring” along with ETC rear-mounted and front-mounted ETC. After experiencing fluctuations in performance in 2019, it has now reached an inflection point in performance, and subsequent high growth can be expected. We expect the company's revenue for 2020-2022 to be 9.0/13.1/1.85 billion yuan, and net profit to mother will be 1.3/27/420 million yuan, corresponding to the current PE 81/38/25 times, covering the first time, and giving it a “buy” rating. Comment: The company is a high-quality wireless communication chip designer. The leading domestic radio frequency technology company is mainly engaged in the development and sale of wireless communication chips, and is the earliest company in the industry to design and launch chips in this field. The founders of the company are Pengfei Zhang and Dawei Guo. They both previously worked for RFMD, a world-renowned RF chip company, then returned to China in 2005 to establish Broadcom Integration and went public in 2019. RF Micro Devices was founded in 1991, headquartered in North Carolina, and listed on NASDAQ in 1997. The company was founded by a group of R&D teams specializing in RF design. The design engineers have an average of more than 25 years of experience in wireless communication chip design. They are proficient in various process technologies, such as AlGaAs, HBT SiGe, BiCMOS, GaN, GaAs pHEMT, InGaP HBT, etc., making it a world-class RF integrated circuit design company. In this context, Broadcom has integrated and formed a leading domestic RF technology team. Most of the company's core team comes from top foreign universities and research institutions such as Yale University, UCLA, Kyoto University, AT&T Bell Labs, etc., all of which have studied abroad in the microelectronics industry and are experts in the field of integrated circuit design. The company's CEO, Pengfeizhang, is a UCLA microelectronics postdoctorate. He is a person who has experienced RF-CMOS technology from initial college research to industrialization of industrial applications. He has accumulated rich experience in design and management while studying and working in the US. Risk warning 1. Industry competition is intensifying and price wars are fierce; 2. Risk of the company's new products not being successfully introduced to customers; 3. Risk of policy changes.