Core ideas:
Local wireless Internet of things SOC rapid development. Since its establishment in 2010, Tai Ling Wei has focused on the R & D, design and sales of wireless system-level chips in the Internet of things. The company's shipments of low-power Bluetooth chips remained the third in the world in 2019-2021, the fifth in the world in 2020, and the seventh in the world in 2019-2021 for IEEE 802.15.4 related chips.
The company continues to invest in R & D to build core competitiveness, laying a solid foundation for the company's long-term development.
The market space is broad, and the technology is developing in the direction of low power consumption, low delay and so on. Global Bluetooth equipment shipments are growing steadily, especially low-power Bluetooth devices. According to the International Bluetooth Technology Alliance cited in the prospectus, global Bluetooth device shipments have grown steadily from 3.6 billion in 2017 to 4.9 billion in 2022, with a compound annual growth rate of 9 per cent over the next five years. Low-power Bluetooth wireless connection technology has outstanding advantages such as long transmission distance, low power consumption and low delay. Multi-mode SoC chip solves the compatibility problems of a variety of wireless transmission protocols and has a broad application prospect.
Focus on the wireless Internet of things chip field, the domestic leading level of technology. The company has a wide range of product applications, and the product matrix is constantly improving. The company's main business income is mainly composed of IoT chips and audio chips, of which IoT chips also include BluetoothLE chip products, 2.4G chip products, multimode chip products and ZigBee chip products. The company is a leader in Bluetooth technology and deeply involved in standard-setting, and is a member of the board of directors of the International Bluetooth Technology Alliance (SIG). Foreign manufacturers have an early layout in the field of Internet of things wireless connection chips, occupying a major share of the world, while domestic manufacturers are represented by Tai Ling Wei. According to the Omdia data cited in the prospectus, among the top companies in the global ranking of Internet of things chip shipments in many areas, the company is the only domestic company.
Profit forecast and investment advice. It is estimated that the company will achieve operating income of 7.06,8.59 and 1.028 billion yuan respectively from 2023 to 2025, and realize net profit of 0.88,1.13 and 148 million yuan respectively. With reference to the comparable company and taking into account the product competitiveness and higher gross profit characteristics of the company, it is suitable to give a certain valuation premium, giving the company a valuation of 65-75 times PE in 2023, with a corresponding reasonable value of 23.76-27.42 yuan per share.
Risk hint. The progress of new product research and development is not as expected; the downstream demand is not as expected; and the intensification of competition brings gross margin risk.