Company profile

The company is a leading manufacturer of high-performance MEMS inertial devices in China. According to the company prospectus, the company is the only company in China that can cover navigation-grade precision MEMS inertial devices. The company's revenue in the first half of 23 years was 97 million yuan, an increase of 42.24%, a net profit of 41 million yuan, an increase of 31.62%, a gross profit margin of 85.1% and a net profit rate of 42.3%. The company's IPO issue price is 26.74 yuan per share, the number of shares issued is 55.21 million shares, and the raised capital of 1.476 billion yuan will be used for iterative product development, closed test base construction and supplementary working capital.

Investment logic

High-performance MEMS inertial sensor domestic leading enterprises, unmanned systems, intelligent driving is expected to lead the growth. According to Yole,2021, the global market for high-performance MEMS inertial devices is more than 700 million US dollars, and the top three foreign companies account for more than 50% of the world, so there is huge room for replacement in the future. According to Yole,24, the global automotive IMU market is expected to reach 230 million US dollars. In the future, L3 autopilot penetration will increase, humanoid robots will be commercialized and mass-produced, and the market is expected to grow rapidly. The company actively develops IMU products for self-driving, unmanned systems and other fields, has made breakthroughs in the client, and is expected to fully benefit in the future. The company's MEMS inertial module is expected to form mass production in 24 years, and the company expects the annual consumption of its two main customers to exceed 100000 sets. The functional security 6-axis IMU has been delivered in small quantities and the company expects to generate millions of dollars in revenue this year.

With high reliability and high customer stickiness in the high-end industrial market, MEMS gyroscope is expected to gradually replace the two-light gyroscope. Currently, 75% of the company's revenue comes from highly reliable industrial applications, with a gross profit margin of more than 80%. Highly reliable industry end-customer test cycle of 3-5 years, customized equipment will not easily change suppliers. A large number of test projects in the early stage of the company gradually turned to the stage of mass production and trial production. at the same time, the demand of miniaturization, intelligence and low cost prompted the MEMS gyroscope to replace the two-light gyroscope, opening up space for the company's highly reliable applications. The company has expanded its high-performance MEMS pressure gauge products and has tested and evaluated four customers and is expected to generate revenue in 24 years.

Earnings forecasts, valuations and ratings

We predict that in 2025, the company's operating income will be 3.05Universe 4.54 / 687 million yuan, year-on-year + 34.5%, 48.9%, 51.3%, net profit 1.51, 2.14 / 278 million, + 29.3%, 42.1%, 29.7%, corresponding to EPS 0.38, 0.54, 0.70 and PE, respectively. Refer to comparable company, give 2024 95XPE, target price 50.87 yuan, cover for the first time, give "buy" rating.

Risk hint

Product research and development schedule is not as expected risk; gross profit margin decline risk; product production control is not as expected risk; downstream customer emerging application research and development progress is not as expected risk; highly reliable industry demand is lower than expected risk; inventory price decline risk; accounts receivable payback risk.