Key points of investment
AC/DC power management chips are developing rapidly, and the synergy effects of Lingou Chuangxin are showing. The Lingou Chuangxin MCU product line acquired by the company formed a combination plan with its own AC/DC power chip products, making substantial breakthroughs in the small and large home appliance business. Among them, in the field of small household appliances, the sales share of the company's products among brand customers such as Jiuyang, Little Bear, and Leifen continued to be introduced; in the field of major appliances, the company's products have been shipped in batches to board card manufacturers such as Megmeet. At the same time, many products have entered the product verification stage for first-tier white power brand manufacturers.
In the field of external power supplies, the company's 20W fast charging products have been mass-produced by a domestic mobile phone brand manufacturer, and 33W products have been shipped in small batches. At the same time, with zero standby power consumption technology, the company has successfully obtained cooperation opportunities with internationally renowned brands, and is expected to start growing next year.
High-current DCDC products have been developed, and product quantities can be expected. In 2023, the company's DC/DC power chip products completed the development of 21 products. Among them, many multi-phase controllers used in PCs, servers, data centers, base stations, etc. had been mass-produced. As of the first quarter of 2024, a 16-phase digital controller had entered the recommended supplier list of internationally renowned companies and also entered the ranks of authorized suppliers of another internationally renowned enterprise; the full range of Drmos products entered the customer sample delivery stage; POL chips entered the customer introduction stage, and some products were mass-produced; EFUSE entered the customer introduction stage . In addition, in terms of the DCDC product process, the company's self-developed low-voltage 0.18μm/40V low-voltage BCD process platform has reached a normal level of output yield, completed a 168-hour aging test, and is currently advancing the 1000-hour aging test and reliability assessment. It is expected that mass production of the product will be achieved in 2024.
Investment advice:
We expect the company's 2024-2026 net profit to be -0.4/1.0/270 million yuan, maintaining a “buy” rating.
Risk warning:
Market recovery falls short of expectations; competitive landscape increases risk; product development and technological innovation fall short of expectations; customer introduction falls short of expectations.