Nanxin Technology: The founder of charging management solutions, Nanxin Technology is a high-quality domestic analog chip company. On the product side, the company continues to expand product categories based on providing end-to-end complete solutions to achieve coverage of a series of products such as general charging management chips, DC-DC, charging protocol chips, wireless charging management chips, AC-DC chips, charge pump charge management chips, and lithium battery management chips. Client, based on mobile phone brand customers, the company continues to make efforts in other consumer electronics, industrial and automotive fields while customers of well-known mobile phone brands such as HOVM contribute core revenue sources. The culmination of charging management solutions, product matrices & customer coverage create the core competitiveness of Nanxin Technology.
Mobile phones and other consumer electronics fields: End-to-end solution provider. Charge pumps lead the fast charging era Charge pumps: In the fast charging era, mobile phones continue to upgrade their high power. From 18W, 33W, and 66W to 80W and 100W, there is a clear trend of increasing penetration rate in fast charging high-power terminals, and mobile phone charge pump ASP continues to increase. Nanxin's charge pump chips have grown together with customers' fast charging and high-power upgrade needs, gradually completing the transformation from latecomer to industry leader. Currently, the company's charge pumps are in one position for mobile phone manufacturers such as HOVM. As the penetration rate in the high-power segment of mobile phone fast charging increases, charge pumps are expected to continue to redeem revenue.
As for charge pumps, more new products can be expected from end to end. AC-DC chip: The company's AC-DC product line already has PFC controllers, SSR, SR, PD protocol OC, etc., which can provide a complete set of solutions for fast charging, adapters, and wireless charging solutions; currently, the company's AC-DC is being introduced into e-commerce platforms and mobile phone inboxes. Wireless charging management chips: More and more high-end models of mobile phones are equipped with wireless charging functions. The increase in the maximum power range of wireless charging from 50W to 80W helps promote the improvement of mobile phone wireless charging management chips ASP; the company's wireless charging chips include transmitter and receiver chips, and the product line is in the process of continuous improvement and continuous introduction of clients. As a supplier of end-to-end solutions, the company's products range from point to point in the field of consumer electronics such as mobile phones, and can be expected to release products such as AC-DC, wireless charging, AMOLED drivers, and PMIC.
Platform-based layout for automotive industrial control, etc., opens up room for long-term growth
The consumer electronics sector, such as mobile phones, forms the basis of the company's revenue, but the company's medium- to long-term growth is far more than consumer electronics. Empowered by technology+R&D, the company's products have successively completed industrial regulations and vehicle level verification, thus achieving extensions to automotive electronics, industrial control and other fields.
In the field of automotive electronics: The company launched a series of automotive-grade products in the fields of automotive instruments, smart cockpits, ADAS and BMS, and relied on wireless/wired charging to leading car manufacturers to achieve large-scale mass production of USB and wireless charging solution clients. Series chips such as DCDC and high-side switches have also been sampled on a large scale for clients. Industrial control field: The company launched a series of power management chips such as DC-DC, high-power density & integrated AC-DC, and actively expanded the market for products in the field of industrial control, which are beginning to bear fruit in the fields of energy storage, drones, power tools, and communications.
Profit forecasts and investment advice
As a simulation company with end-to-end solutions, in the short to medium term, it has benefited from increased penetration rate in the high power segment of mobile phone charging+product line volume, and high performance certainty; in the medium to long term, growth can be expected with product line expansion and client volume in the automotive and industrial control fields. The company's net profit for 2024-2026 is estimated to be $347, 4.66, and 611 million yuan, respectively, covered for the first time, giving it a “buy” rating.
Risk warning
1. Progress in product development and technological innovation falls short of expectations;
2. Market competition increases risk;
3. Risk that profit forecasting assumptions are untrue or fall short of expectations.