Main points of investment

This Friday (August 11), there is a Science and Technology Innovation Board listed company "Tai Lingwei" inquiry.

Tailingwei (688591): Tailingwei is a professional integrated circuit design company, mainly engaged in the research, development, design and sales of wireless Internet of things system-level chips, focusing on the cutting-edge technology development and breakthrough in the field of wireless Internet of things chips. From 2020 to 2022, the company achieved operating income of 454 million yuan / 650 million yuan / 609 million yuan, YOY of 41.76%, 43.15% and 6.19%, respectively, with a three-year compound annual growth rate of 23.93%. The net profit of the company was-92 million yuan / 95 million yuan / 50 million yuan, and the YOY was-271.17%, 203.05%, 47.60%, respectively, to turn losses into profits in 2021. During the latest reporting period, the company's operating income from January to June 2023 was 319 million yuan, down 2.49% from the same period last year, and the net profit from its mother was 29 million yuan, down 4.77% from the same period last year. According to the preliminary forecast, the net profit of the company belonging to the company's common shareholders from January to September 2023 is expected to be 36 million yuan to 44 million yuan, changing from 65.57% to 102.36% compared with the same period last year.

Investment highlights: 1. Focusing on low-power Bluetooth SoC, the company has a comprehensive layout around the field of low-power wireless Internet of things connection, making it a global leader in this segment. The company has complete low-power Bluetooth technology, which is one of the world leaders in this field. According to the data quoted by Omdia and Nordic in the 21Q4 public report, the company's global market share of low-power Bluetooth chips reached 12% in 2020, ranking third in the world. In 2021, the number of low-power Bluetooth terminal product certification climbed to the second place in the world, second only to Nordic. In addition, based on the outstanding technical strength and market position in the Bluetooth field, the company was selected as a member of the Board of Directors of the International Bluetooth Technology Alliance (SIG) together with Apple Inc, Ericsson and Intel Corp in July 2019. Focusing on low-power Bluetooth SoC products, the company has expanded multi-mode SoC products compatible with a variety of Internet of things application protocols, and laid out ZigBee protocol SoC, 2.4G SoC, audio SoC, etc., leading the world in product richness and market share, according to Omdia, Bluetooth Alliance and other data Since 2019, Tai Ling Micro has steadily ranked among the top three in the global market share in the field of low-power Bluetooth chips, represented by low-power Internet of things wireless connection chips, and its share has shown a steady increase trend. 2. The company's core technical personnel and management team are from industry leaders; large funds hold more than 10% of the shares. There are three core technical personnel in the company, among which Sheng Wenjun, the current director and general manager of the company, has served as Qualcomm Inc senior engineer, head of core technology project, head of Texas R & D center of Spreadtrum Communications, director of design, and vice president of Zhimai Microelectronics; current director, deputy general manager and chief technology officer MINGJIAN ZHENG (Zheng Mingjian) has served as director of digital and architecture design of Howell Technology. Jin Haipeng, deputy general manager and chief operating officer of the company, was the senior director and engineer of Qualcomm Inc. In terms of management team, Wang Weihang, chairman and controller of the company, has worked as an engineer of the sixth Research Institute of China Electronic Information Industry Group Co., Ltd.; Director SHUO ZHANG (Zhang Shuo) has served as LSI Logic process R & D engineer, QuesterTechnology/Canon Technical technology market engineer, senior vice president of Cypress semiconductor strategy, vice president of global sales, etc., management and R & D team have rich experience in industry leading companies. In addition, the big fund holds 11.94% of the company. 3. Benefiting from the gradual improvement of the application penetration of the Internet of things, the market for multimode chips with multi-protocol communication capabilities is expected to gradually open, as one of the top five enterprises in the world for multimode chips, the company is expected to continue to benefit from the performance growth driven by the volume of multimode chip products. In 2016, the company developed the first domestic and the world's second multi-mode low-power Internet of things wireless connection system-level chip TLSR8269 after TI, which can support a number of protocol standards, including ZigBee, Bluetooth LE, 2.4G and Thread. As there is no multimode chip market data that can completely cover all the company's protocol standards, according to the statistics of Omdia for the multimode chip market that supports both Bluetooth LE and IEEE 802.15.4 technical standards, the company's market share in the above segments remains among the top five in the world in 2019 and 2020. With the continuous expansion of the industry penetration of the Internet of things, the application space of multimode SoC chips that can support multiple connection modes and standards and achieve interconnection between different protocol devices is expected to grow rapidly, and the company is expected to continue to benefit. According to the company's prospectus, it is expected that the market share and shipping scale of the new generation of TLSR8 series and TLSR9 series mid-and high-end products are expected to continue to expand in 2023, which will significantly increase the scale and proportion of the company's medium-and high-margin products. The company expects the homing net profit from January to September 2023 to be 36 million yuan to 44 million yuan, an increase of 65.57% to 102.36% over the same period last year.

Comparison of listed companies in the same industry: according to the similarity of the main business, Hengxuan Technology, Broadcom Ltd Integration, Torch Core Technology and China Science and Technology Lanxun are selected as Tai Ling Wei's comparable listed companies. From the above comparable companies, the average income scale of comparable companies in 2022 is 923 million yuan, comparable PE-TTM (excluding maximum, negative / arithmetic average) is 65.42X, and sales gross profit margin is 31.33%. Comparatively speaking, the company's revenue scale is lower than the average level of the same industry, and the sales gross profit margin is higher than the average level of the same industry.

Risk hint: companies that have started the inquiry process still have the possibility of not being listed due to special reasons, the company content is mainly based on prospectuses and other public materials, and the selection of listed companies in the same industry is not accurate. Risk, content data interception may have interpretation deviation and so on. The specific risks of listed companies are shown in the text.