The company is the domestic power management IC subdivision track leader, the platform layout opens the long-term growth space. Since its establishment in 2014, the company has continuously improved the layout of PMIC products, taking LED lighting driver and AC/DC as a starting point, gradually expanding motor drive, DC/DC, BMS and other new products: ① drive IC, the company LED driver IC has fully covered the general lighting / high power / intelligent lighting market, and is currently expanding the motor drive IC market by means of endogenous epitaxy In terms of ② switching converters, the company started in the small home appliance market, and gradually expanded its business to white / black electricity and standard power fields. At present, the company has successfully cut into the supply chain of Haier, Midea and other home appliance customers, and continued to break through the high-power fast-charging market; in terms of ③ battery management chips, the company's analog front-end chips (AFE) have been used in power tools, drones and other fields. The company has remarkable advantages in PMIC subdivision track products, and has grown rapidly in the wave of domestic substitution in recent years, and its operating income has increased from 257 million yuan in 2018 to 526 million yuan in 2022. Terminal demand is about to pick up, superimposed company motor-driven IC, BMS and other new products continue to break through, the future is expected to usher in a period of rapid growth.
The bottom of the industry cycle has been superimposed domestic substitution acceleration, domestic PMIC manufacturers are expected to benefit deeply.
At present, the de-inventory phase of domestic chip companies in LED drivers, DDIC and other industries is coming to an end, and the release of new products such as mobile phones is expected to lead to a gradual rebound in demand for related pan-consumer chips. With reference to the current situation of the industry cycle, we believe that the business cycle of the semiconductor industry has gradually begun to pick up. In terms of competition pattern, at present, the localization rate of power management chips in China is still low, and European and American enterprises such as TI and PI still occupy the main market share. Under the background of the last round of lack of core and superimposed domestic substitution, local companies are gradually rising, and domestic manufacturers such as Biyi Micro have broken overseas monopolies in some subdivided tracks. At present, the company has become a dominant supplier in driving IC and AC/DC market, with well-known manufacturers such as Haier, Midea, Jiuyang, TCL and Voice Holdings. At the same time, the company is actively expanding new products such as DC/DC, motor drive control, grid drive, battery management and other new products, layout research and development of signal chain business, and is expected to continue to benefit from the recovery of demand and the promotion of domestic substitution in the future.
The development of the new energy industry has led to a rise in the volume and price of battery management chips, and the company is actively laying out and reshaping the performance ceiling.
The rapid development of terminals such as photovoltaic energy storage and electric vehicles has led to the increasing importance of battery management chips. According to Mordor Intelligence, the global BMIC market is expected to grow from US $6.8 billion in 2018 to US $9.3 billion in 2024. Due to the high technical barrier of BMIC chips, the main players in the market are global leading manufacturers such as TI and MAXIM. As one of the few domestic enterprises that have achieved breakthroughs in high-string AFE chip technology, Biewei already has the core technology that can support up to 18 strings of "high-precision lithium battery monitoring and protection". The products can cover 110V internal energy storage and battery system applications. It can be used in portable, wearable electronic products, power tools, UAV, power battery pack, household storage and many other fields. At present, the company is actively promoting the marketization process of AFE chips, and speeding up the research and development of new products such as battery protection and electricity meters. The company's BMIC chips have achieved customer breakthroughs in 2023 and are expected to increase rapidly in the future.
Investment advice: downstream demand gradually pick up, domestic replacement continues to promote, the company as the PMIC subdivision track leader, continue to broaden the product layout to open up long-term growth space. We expect the company's 2023-2025 net profit to be 0.31 hundred and **** million yuan, corresponding to an EPS of 0.44 million, 1.46 and 2.38 yuan, giving a "recommended" rating for the first time.
Risk tips: increased competition in the industry; the progress of new product development is not as expected; downstream demand is not as expected.