Overview of events
The offering price is 65.00 yuan per share, the number of shares issued is 11.7114 million shares, the total amount of funds raised by non-public offerings is 761 million yuan, and the net amount raised after deducting the issuance expenses is 744 million yuan. And the shares subscribed by the issuing object of this non-public offering shall not be transferred within six months from the date of the end of the issue. Among them, the company's existing shareholder Shanghai Wuyuefeng Integrated Circuit Equity Investment Partnership (limited partnership) holds 3.74 million shares of the issuer, accounting for 2.70% of the total share capital before this issue. According to the simplified equity change report disclosed by Shanghai Zhineng Industrial Electronics Co., Ltd., Shanghai Wuyuefeng Integrated Circuit Equity Investment Partnership is a concerted actor of Shanghai Zhineng Industrial Electronics Co., Ltd. Therefore, after Shanghai Zhineng Industrial Electronics Co., Ltd. has completed the registration of this issue and the previously agreed transfer of shares, those acting in concert with it will hold a total of 18.23 million shares of the issuer, accounting for 12.12% of the total share capital after the issue.
Speed up the layout of vehicle gauge-level chips, "ETC+" is the future
This fund-raising is used to invest in intelligent transportation and intelligent driving R & D and industrialization projects, which is an important strategic measure for the company to distribute intelligent transportation field. Stimulated by the cancellation of provincial toll stations and the selection of ETC for new cars, the installation mode of ETC has gradually shifted from rear loading to forward loading, and more and more vehicle factories and related suppliers have accelerated the layout of ETC front loading market. According to the company's official information, based on more than ten years of research and development in the field of ETC chips, the company successfully launched the new car specification ETC chips BK5870T and BK3435T in 2020, and entered the field of ETC preloading and became the supplier of the whole vehicle factory. In the field of ETC pre-installed chips, the company has become a leader among many "wave riders". In addition, the company will also carry out the research and development of the overall solution of vehicle gauge-level high-precision global positioning chip and millimeter wave radar chip, in order to realize the localization of vehicle gauge-level chip and further enhance the company's comprehensive strength.
Internet of things / Bluetooth audio business is coming together, product iteration is accelerated.
According to the forecast of Gartner, by 2020, the number of global networking devices will reach 20.412 billion, and the market size of the Internet of things will reach 2.93 trillion US dollars, with an average annual growth rate of 25% to 30%. Wireless occupies a large market, intelligent hardware such as intelligent speakers and floor-sweeping robots emerge in endlessly, and the field of WiFi MCU chips is the key device to realize the Internet of things. At present, the global mainstream companies in the field of WiFi MCU include Qualcomm Inc, Texas Instruments Inc, Mei Man, etc., while domestic related chip supply chain enterprises are expected to usher in a golden period of development driven by graffiti, XIAOMI and other intelligent hardware solutions. According to the company's announcement on November 7, 2020, the company's Wi-Fi, Bluetooth audio and other more competitive new generation products have completed the research and development iteration and started mass production and sales, and the related new products are expected to bring continuous performance contribution to the company.
Investment suggestion
We maintain our previous profit forecast that the company's revenue in 2020-2022 is 883 million yuan, 1.267 billion yuan and 1.825 billion yuan respectively, and the net profit attributed to the shareholders of the parent company is expected to be 104 million yuan, 247 million yuan and 402 million yuan respectively. From the valuation point of view, we compared with the domestic IC design companies, excluding the higher valuation of Starr Semiconductor, Threp, Sheng Bang shares and new Jieneng, relative to the 2021 PE valuation in the range of 40-70 times, in view of the company ETC afterloading chip shipments reduced and the Internet of things related products more fierce competition, we maintain the previous "increase" rating.