A new ASN was released to further enrich the vehicle specification product line. As a leader in analog chips in China, Sirup provides a broad portfolio of product solutions for automotive applications, including six major automotive product categories and 30+ segments, including linear products, converter products, interface products, power management products, drive products, and switch products, to meet the diverse needs of the automotive industry for high-performance analog chips. The new ASN (Automotive Sensor Network) automotive sensor network transceiver released by the company is a high-reliability long-range automotive lossless audio bus chip. It is used in smart cockpit audio systems to solve many challenges with peer-to-peer analog connection characteristics, including cable weight, cable cost, wiring problems, and reliability of multiple connections, and can achieve advanced audio and acoustic applications in the automotive field. At the same time, ASN is also suitable for conferencing and teaching systems, providing flexible and efficient audio solutions.

It is currently on the eve of mass production and is expected to gradually contribute revenue next year. The ASN product is currently in the mass production release phase and has been validated as a client product. The good performance and reliability of ASN helps achieve POC power supply to remote nodes, and helps customers implement road noise reduction and active noise reduction solutions. The release of new ASN products has enriched the company's digital-analog hybrid chip product line, perfected the company's layout in the field of automotive audio products, enhanced the company's competitiveness in this field, and is conducive to domestic replacement of products in this field. We believe that, benefiting from increased support for domestic chip procurement by automakers and the outstanding competitiveness of the company's products, ASN products will gradually increase in volume next year to open up market space.

Profit forecasting and valuation. We expect the company's 2024E-2026E revenue to be 1.266/1.833/2.533 billion yuan, net profit to mother of -0.096/0.11/0.34 billion yuan, and corresponding EPS of -0.72/0.83/2.56 yuan. We used the PS valuation method to give the company 9.0X-10.0X PS in 2025 (higher than the industry average). We believe that the reasonable market value of the company is 16.499-18.332 billion yuan, and the corresponding reasonable value range is 124.42-138.25 yuan/share, maintaining a “superior to market” rating.

Risk warning. Industry recovery falls short of expectations, product development falls short of expectations, and delays in mergers and acquisitions.