The company is the leader of Internet of things communication chips and one of the main chip suppliers of State Grid. The company is a leading designer of Internet of things communication chips in China, and its main products are smart grid communication chips and modules, terminals and systems based on the company's self-developed chips, and has become one of the main chip suppliers in the State Grid market. and closely follow the development needs of the power grid market, continue to launch high-performance products to achieve stable development. The company is developing a new generation of Beidou multi-mode and multi-standard navigation core chips that can be used for orderly and intelligent management of power assets, which is expected to help the company to further expand its market share in the field of power Internet of things.
The penetration rate of PLC technology has increased, and downstream applications have blossomed at multiple points. Based on its PLC technology advantages, the company actively expands its product line, seizes the development opportunities of Internet of things in various fields, makes continuous efforts for new energy, smart home, intelligent power digital management and other key application fields such as photovoltaic, high-speed rail energy efficiency management, lighting, electric vehicle charging management, etc. At the same time, the company plans to raise funds by issuing convertible bonds to further promote product research and development and market development in the areas of the Internet of things such as photovoltaic couplets, high-speed rail smart energy efficiency and smart homes.
[investment advice]
It is estimated that the company's revenue from 2022 to 2024 will be RMB 8150.91 billion respectively. It is estimated that the net profit from 2022 to 2024 will be RMB 1.99m, the corresponding EPS will be RMB 1.37pm, and the PE before the corresponding period will be as much as that of 43-26-18. We believe that the company is deeply engaged in the field of PLC technology and continues to expand new products to provide customers with intelligent chip and module solutions, which is expected to maintain a continuous increase in the market share in the field of power Internet of things, and at the same time promote the continuous penetration of PLC technology in the field of non-power Internet of things. We comprehensively refer to the relevant comparable companies in the IC design industry, give the company 35 times PE in 2023, give a 12-month target price of 48.10 yuan, and upgrade to the "buy" rating.
[risk Tip]
The progress of new product research and development is lower than expected
Downstream market demand is lower than expected
The prices of raw materials and contract manufacturers fluctuate sharply.
Market competition intensifies
