Core UNOCI is a domestic leader in high-performance MEMS inertial sensors, with strong technical strength of core personnel and product performance comparable to that of international leaders. Founded in 2012, the company adopts Fabless business model and has focused on the research, development, testing and sales of high-performance silicon-based MEMS inertial sensors for many years. It is one of the few companies in China that can achieve stable scale production of high-performance MEMS gyroscopes. The company's core products are MEMS gyroscope and MEMS accelerometer, which are mainly used in high-end industry, unmanned systems and high reliability fields. The company pays attention to R & D investment, and the core technical personnel are strong. The R & D expenditure rate in 2020-2022 is higher than that of comparable companies every year. The fourth generation gyroscope products are expected to reach mass production this year, which is expected to further promote the company's long-term growth.

The performance is growing rapidly, and the profitability is maintained at a high level. In recent years, the amount of products imported by customers has increased, and the revenue has increased rapidly. From 2020 to 2022, the revenue was respectively 109000,000,000, with a compound annual growth rate of 44.54%. The net profit returned to the home was respectively 0.52 hectare, with an annual compound growth rate of 49.89%. In terms of gross profit margin, the gross profit margin of the company in 2020-2022 was 87.96pm 85.39max 85.92% respectively, which was maintained at a high level. In terms of products, the gross profit margins of all parts of the main business are high, and the company's main products tactical and navigation inertial sensors contribute the main income, and the product bargaining power is strong.

The MEMS market is still dominated by overseas leaders, and the opportunities for domestic manufacturers are highlighted. According to Yole Intelligence, the MEMS market will reach US $13.6 billion in 2021 and is expected to grow to US $22.3 billion in 2027. At present, the market of MEMS inertial sensor is dominated by overseas leading companies such as Honeywell, ADI, Sensonor and so on, while the localization rate of high-performance MEMS inertial sensor is even lower. According to the company's prospectus, the company accounts for about 3.67% of the global market share of high-performance MEMS sensors in 2021. And the company's products have advantages in technology and price, with continuous breakthroughs in follow-up revenue scale, brand effect and customer expansion, the company is expected to fully benefit from the domestic substitution trend and achieve considerable growth.

Actively layout IMU, autopilot + robot to open a larger growth ceiling. In the field of self-driving, IMU has strong independence, helps autopilot with high-precision positioning and safe driving, and has become standard for self-driving above L2, and the value of the bike is expected to reach 50-1000 yuan. In the field of humanoid robot, IMU can monitor the real-time status, position information and motion trajectory of humanoid robot, and help humanoid robot maintain posture balance. Single robot uses one or more IMU, which has a broad market space. The company actively arranges autopilot IMU, has reached cooperation with a number of mainframe factories, and is expected to gradually fixed-point mass production. At the same time, the company's functional safety 6-axis IMU is expected to be in production in 2026, and the company is expected to expand into the robot market in the future.

Investment suggestion: we are optimistic about the company's leading position in the field of high-performance MEMS inertial sensors, and the company's homing net profit from 2023 to 2025 is expected to be 1.6 million yuan, 2.4 billion yuan, and the corresponding PE is 95-66-48 times. Consider the company's competitiveness and scarcity in the field of high-performance MEMS inertial sensors, and continue to open up growth space in emerging markets such as automobiles, covering it for the first time and giving it a "recommended" rating.

Risk hints: the risk that downstream demand is lower than expected; the risk that R & D progress is not as expected; the risk of technical personnel change; the risk of competition pattern change.