High performance MEMS inertia sensor leader

Founded in 2012, the company specializes in the research, development, testing and sales of high-performance MEMS inertial sensors, and has accumulated profound experience in semiconductors and micromachines. it has become one of the few companies in China to stabilize mass production of high-performance MEMS inertial sensors. At present, the products can be widely used in high-end industries, unmanned systems, high reliability and other fields. The company's performance has maintained rapid and steady growth in recent years, with a compound annual growth rate of 44.54% in operating income and 49.89% in net profit. In the first half of 2023, the operating income was 97 million yuan, an increase of 42.24% over the same period last year, and the net profit of returning home was 41 million yuan, an increase of 31.62% over the same period last year.

MEMS inertial sensor has a high barrier to build a moat, and the domestic alternative to MEMS inertial sensor is an important branch of MEMS sensor, including gyroscope, accelerometer, inertial measurement unit IMU and so on. Driven by the demand of downstream UAV, automobile, industry, consumer electronics and so on, according to Yole forecast, the global inertial sensor market will reach about 5 billion US dollars by 2027. As a leading high-performance inertial sensor manufacturer in China, the company has the advantages of miniaturization, high integration and low cost. Based on the company's 21-year revenue, we estimate that the company's global MEMS inertial sensor market share is about 0.7%, and the domestic market share is about 1.2%. The domestic alternative space is abundant.

The advantages of product technology and technology are outstanding, and the new field leads the new direction in the future. unmanned system is a new field of inertial sensor application. In the field of autopilot, IMU and GNSS are combined to form "integrated navigation", which can calculate the latest position when the satellite signal is weak or even lost. In the field of humanoid robot, IMU can help it realize the functions of positioning, measurement, balance, fall detection and so on. The company's current customers in unmanned systems cooperation include smart electric vehicle manufacturers and Smart City Construction. The project is expected to be completed in 23 years, and the company's share in emerging areas will continue to increase.

Investment suggestion

We estimate that the company's revenue from 2023 to 2025 will be 332 Universe 475 Universe 658 million, the net profit from its parent will be 1.66 Universe 222,322 million, and the EPS will be 0.41 Universe 0.58. The closing price on September 21, 2023 will be 36.71 yuan, corresponding to PE's 89-63-46 times, giving the company an "overweight" rating for the first time.

Risk hint

Product research and development is not as expected, downstream demand is not as expected, and the risk of deterioration of the competition pattern