Focusing on IoT smart hardware SoC chips for more than 20 years: The company was founded on April 10, 2001. It is a chip design company focusing on IoT smart hardware SoC chips. The company's main products include IoT camera chips and IoT application processor chips. The products have been widely used in various fields such as smart homes, smart security, smart offices, and the industrial Internet of Things. Specifically, Ankaiwei's IoT camera chip series has been used in terminal devices such as home cameras, security cameras, baby monitors, etc., and the application processor HMI chip series has been used in building video intercom, smart access/attendance, HMI network management, industrial equipment display control terminals, etc.; BLE application processor chip series has been used in terminal products such as smart locks, Bluetooth audio devices, and reading pens. One of the main application scenarios of the company's IoT camera chips is home cameras. According to relevant data compiled by iResearch and Huajing Industrial Research Institute, global home camera shipments in 2020 were 88.89 million units, and domestic market shipments were 40.4 million units. It is estimated that in 2025, global and Chinese market shipments will reach 214.91/81.75 million units respectively, with a compound growth rate of 19.3%. According to Ankawei's 2022 and 2023 IoT camera chip sales statistics, the market share of its IoT camera chips in the global home camera market exceeded 20% in 2022 and 2023. The development of IoT smart hardware SoC chip technology is accompanied by the rapid development of smart hardware for animal networking. At the same time, chips also require higher computing power, lower power consumption, better wireless connectivity, and stronger artificial intelligence processing capabilities. Ankaiwei's SoC chips currently include chips with no computing power and lightweight computing power. The company has self-developed NPU, which will continue to meet intelligent development needs through continuous optimization and innovation. In terms of low power consumption and wireless connection technology, after years of development, the company has also accumulated relevant IP and technical infrastructure, which is conducive to more efficient empowerment and intelligent interconnection of everything.

The technical layout is comprehensive. In the context of the era of end-side AI, market space continues to open up: the company focuses on technological innovation and continues to invest in R&D. After years of technology accumulation, the company has formed seven core technologies, including SoC technology, ISP technology, and machine learning technology. It has 60 types of circuit design IP cores, including digital logic circuits, analog circuits, RF circuits, power supply circuits, and digital-analog hybrid circuits, as well as multiple system platform IPs. These core technologies and IPs enable the company to rapidly design and develop products according to the differentiated needs of downstream customers and application fields to meet the diverse needs of the AIoT market. The company has achieved self-developed IP accounts for more than 75% of the main chip products, and the degree of IP autonomy and control is high, which has also laid the technical foundation for the company's continuous innovation and product iteration. The company's product development is market-oriented. Relying on the company's strong chip research and development capabilities, it has developed two main types of chip products: IoT camera chips and IoT application processor chips. IoT camera chips have covered products from 1 million pixel resolution to 8K resolution. Among them, 4K resolution chips have been released and are being tested, and 8K chips are planned and under development. In terms of intelligence, the company already has a lightweight computing power chip, and a chip with high computing power has been successfully developed in system development, and another chip with higher computing power is already being developed. IoT application processor chips include HMI chips and BLE chips. The product series is continuously iterated and performance is continuously upgraded according to market demand to meet the requirements of various market segments in the fields of smart office, smart home, and industrial IoT. The company's chips have excellent performance and have achieved a good balance in terms of performance, grain area, and power consumption (“PPA” for short). Compared with competitors of the same specification, the overall performance of the company's chips is comparable to mainstream products in the industry. Among them, IoT camera chips have advantages in ISP processing capacity, intelligent computing power, and typical working power consumption; IoT application processor chips have advantages in product specifications such as video resolution, codec format, and CIS interface. In the future, the company will promote the continued development of IoT camera chips to become high-definition, intelligent, and XR.

Actively promote the development and marketization of fifth-generation IoT camera chips that have already been verified by streaming, and advance the development of next-generation (8K pixel resolution) chip products in line with its own project planning and market development; in terms of computing power, strengthen the development and innovation of machine learning technology, actively promote the development of large language models and large visual model end side implementation technology, and promote the development and marketization of IoT camera chips with high computing power to achieve full coverage of the product line (including research) from 1 million pixels to 8K pixels, and is both computationally inefficient and lightweight , small computing power type, expanding the scope of application of small to medium computing power chips on the end side to meet the diverse needs of the market.

Investment advice: The company is expected to achieve revenue of 0.729 billion yuan, 0.932 billion yuan, and 1.179 billion yuan respectively from 2024 to 2026, and net profit to mother - -0.029 billion yuan, 0.075 billion yuan, and 0.147 billion yuan respectively. Considering that the company is still in the product upgrade R&D investment period and revenue volume continues to rise, we use PS for valuation. The company's PS from 2024 to 2026 is 6.31 times, 4.93 times, 3.90 times, below the comparable company average. It was covered for the first time, and an increase in holdings rating was given.

Risk warning: risk of R&D falling short of expectations; risk of losing core technical personnel; risk of overseas operations; risk of falling inventory prices; risk of declining gross margin due to increased industry competition; macro-environmental risk