Events:

The company issued the 2021 stock option and restricted stock incentive plan (draft) on July 14. It is proposed to grant a total of 3.7375 million shares to the company's middle and senior managers and core technical (business) backbone personnel through the stock option incentive plan and the restricted stock incentive plan, accounting for 2.48% of the company's share capital, of which 2.99 million shares are granted for the first time (restricted stock and stock options). The total number of reserved grant rights (restricted stock and stock options) is 747500 shares.

Main points of investment:

The equity incentive is bound to the core middle and senior management and technical personnel, which is conducive to the long-term development of the company's middle and senior managers and core technical (business) backbone personnel. through equity incentives to effectively combine the interests of shareholders, the interests of the company and the personal interests of the core team, it is conducive to the long-term development of the company. The exercise price of the stock option incentive plan is 72.46 yuan per share, and the restricted stock grant price is 36.23 yuan per share.

The tuyere of the Internet of things has arrived, and the company's iterative new products have been sublimated to launch the Hongmeng system to comprehensively break through the boundaries of various intelligent devices, realizing resource sharing and flexible transfer among different devices, further releasing the application space of Internet of things devices, Internet of things interconnection Wi-Fi to meet the growth period of the industry. In 2020, the company opened up new high-quality customers, graffiti intelligence and Midea, while new Wi-Fi chip products began mass production, the first Wi-Fi 6 Internet of things chip in the industry. We believe that, with the improvement of customer demand, the company's Internet of things Wi-Fi chip business will rise in volume and price.

Profit forecast

To maintain the company's profit forecast, the company is expected to return to its parent net profit of 2.25,3.65 and 482 million yuan in 2021-2023, corresponding to PE of 48,30,22 times. It is optimistic about the volume growth of the company's Internet of things Wi-Fi chip, TWS Bluetooth chip and ETC pre-installed chip, and maintains the buy rating.

Risk hint

The shortage of wafer foundry leads to lower-than-expected shipments and a sharp rise in costs; the introduction of TWS brand customers is not as expected; the demand of Wi-Fi chip customers is not as expected; and the entry of new players leads to a sharp decline in product prices.