1. The company simulates the scarcity of the whole product of IC and provides the overall solution to the customer.
The company is a rare chip design enterprise with balanced development in the field of signal chain analog chip and power management analog chip. Signal chain analog chip positioning is high-speed and high-precision. Power management chip has the characteristics of high power density and low power consumption. The company has designed a number of cutting-edge products, including USB2.0/3.1 components, ultra-low power consumption and high-precision operational amplifier components, high-efficiency power management components and so on. The company provides one-stop analog chip solutions, downstream applications include consumer electronics, intelligent LED lighting, industrial control and security, communication equipment and medical devices and other fields, automotive electronics active layout, is expected to become a new performance growth point.
2. A full range of categories will help the company to increase its performance, optimize its product structure and improve its profitability.
The company has continuously broadened and improved its product line, continued to enrich its categories, and its operating income has increased rapidly. The company's revenue in 2021 was 508 million yuan, with an average compound growth rate of 92.74% from 2019 to 2021.
The gross profit margin continues to rise, with the company's gross profit margin of 53.64% in 2021, mainly due to the introduction of a number of high-performance products and the improvement of overall profitability. The company's 2022H1 is in good condition, maintaining the momentum of rapid growth, with operating income of 293 million yuan, an increase of 31.40% over the same period last year; net profit of 120 million yuan, an increase of 100.26% over the same period last year; and non-net profit of 111 million yuan, an increase of 82.34% over the same period last year.
3. To simulate the long slope and thick snow in the IC industry, domestic manufacturers have huge room for development.
According to IC Insights data, the global analog IC market is expected to be US $83.2 billion in 2022, and China's analog IC market is expected to reach US $42.9 billion by 2026, with a compound growth rate of 7.85% from 2021 to 2026. Chinese mainland Top10 Analog IC manufacturers account for 7.78% of China's analog IC market share in 2021, with a low localization rate, and strong industry demand superimposed with domestic alternatives will drive the rapid development of domestic analog chip manufacturers.
4. We recommend keeping an eye on the company, covering it for the first time and giving it a "buy" rating.
The company is one of the few domestic chip design enterprises with balanced development in the field of signal chain analog chip and power management analog chip, continuously increasing R & D investment, horizontally expanding product categories, vertically expanding application scenarios, and looking forward to the future. We estimate that the company's revenue from 2022 to 2024 will be 609 million yuan, 935 million yuan and 1.317 billion yuan respectively, and its net profit will be 209 million yuan, 291 million yuan and 411 million yuan respectively, corresponding to 41 times, 30 times and 21 times of PE respectively. We are optimistic about the long-term development of the company, covering it for the first time and giving it a "buy" rating.
5. Risk hint
The risk of industry demand fluctuation and international trade friction; the risk of high customer concentration; the risk of reduction of share and gross profit margin brought about by competition; the risk of iterative technological upgrading and declining business performance; the risk that the profit forecast hypothesis is not established.