Fundamental analysis: High-performance motor driver control chip provider, full growth momentum in multiple scenarios. Since its establishment in 2010, the company has focused on designing special chips for motor drive control, extending to the application side and developing into a system-level service provider: 1) The products cover all key chips for motor drive control, providing specialized chip products, suitable architectural algorithms and motor structure design solutions. With its technical performance advantages, the product has been widely used in various scenarios, and has a high brand awareness, market recognition and industry position in the BLDC motor field; 2) the financial situation is healthy, performance is steadily improving, and high-performance products build a high level of profit; 3) the equity structure is relatively stable, with emphasis on technology, and equity incentives for shared growth.

Domestic products continue to penetrate independently under large capacity, and emerging applications have opened up room for growth: overall, the BLDC driver control chip market is growing steadily, terminal applications continue to expand, and products continue to be iterated under high downstream requirements, and high-performance chips have ushered in important development opportunities. Looking at the scenario: 1) Currently, the main application areas include small household appliances, white electronics, sports mobility, and electric tools, etc., which will continue to benefit from increased penetration rates, product renewal requirements, and domestic substitution processes in the future; 2) Emerging development application fields, including automotive electronics, humanoid robots, etc., will become a long-term growth pole for motor drive chips under the trend of electrification and intelligence.

The company's core focus: Technology-based, with a broad market capacity to welcome opportunities for increased penetration rate+domestic substitutation+emerging terminals. Based on the following three-point logic, we are optimistic about the future development of the company: 1) the company has technical accumulation in the field of BLDC motor drive control, and has the triple core advantages of chip technology, motor drive architecture, and motor technology; 2) Under the trend of increased BLDC penetration and domestic substitution, it will continue to increase its market share in traditional application fields such as home appliances and power tools; 3) expand emerging application fields such as industry, service robots, and automotive electronics, which will inject new momentum into the company's medium- to long-term development.

Investment advice: Based on the company's core views above, we are optimistic about the company's future development. We expect the company's revenue for 2024-2026 to be 0.58/0.73/0.91 billion yuan, respectively, and net profit of 0.24/0.29/0.36 billion yuan, corresponding to 2024-2026 PE of 39.3/32.6/26.0X. This is the first coverage, giving Fengyi Technology a “buy” rating.

Risk warning: risk of downstream BLDC motor demand falling short of expectations; risk of increased industry competition; risk of motor control chip technology routes; risk of supplier concentration; R&D falling short of expectations.