Incident: On April 15, 2023, the company released its 2022 annual report. It achieved revenue of 2.11 billion yuan in 2022, an increase of 22.92% over the previous year; net profit attributable to shareholders of listed companies was 400 million yuan, a decrease of 9.42% over the previous year.
Image processing and intelligent algorithms continue to be upgraded. Revenue in the professional video processing field increased 23.43% year-on-year in 2022; self-developed professional image processing engine ISPs have evolved to the 7th generation, incorporating AINR noise reduction to achieve a full range of functions; and launched a 3rd generation self-developed video codec to further improve coding efficiency and actual video experience. At the same time, a series of high-performance algorithms were developed based on self-developed NPU, which supports intelligent functions such as professional-grade figure/vehicle detection, and has a one-stop supply capacity for professional smart video chips and solutions. Currently, the company's IPC products are the main products with the industry's leading channel shipping volume.
Focus on new AI applications and develop solutions to achieve mass production. In the field of smart IoT, the company continues to focus on emerging application scenarios, expanding cooperation with leading brands. High-performance low-power cameras are mass-produced by customers; mass production is achieved by customers using Turnkey solutions, RTOS solutions, etc.; and has launched a variety of smart camera chip products for consumer scenarios to achieve full implementation of inclusive intelligence; it is currently actively promoting research and development of edge node network camera (smart IPC) master control chips and edge domain network video recorder (smart NVR) master chip products for high-performance AI edge computing chips to complement the company's smart performance Product line for the video edge domain.
Accelerate certification and drive innovation in vehicle camera technology. The annual revenue of the smart car dealership sector increased 21.1% year-on-year in 2022; it has professional vehicle regulation ISP+ analog video link chips+vehicle DVR chips, and a series of in-vehicle video products and solutions, covering vehicle rear to front, cabin to exterior, and competing with Sony and NEXTCHIP. Front-loaded vehicle regulation chips have achieved large-scale front-loading product shipments, completely replacing foreign chip solutions; introducing new-generation in-vehicle ISP algorithms and adopting advanced process technology products for the first time, which can be applied to products such as M/AVDOMS/DVR, etc., with high performance and high performance Low power consumption characteristics; in addition, the company will accelerate the promotion of AEC-Q100 vehicle regulation certification and ISO-26262 functional safety system certification, provide complete solutions for vehicle cameras, and promote technological transformation and promotion of in-vehicle transmission.
Adhere to market-oriented and effective research and development. The company will continue to invest in research and development of advanced technologies such as intelligent ISP technology, intelligent noise reduction technology, H.266 video coding technology, high-performance multi-core heterogeneous SoC architecture design, and advanced process platforms. In the new round of intelligent upgrades, the IPC SoC market will continue to grow rapidly in the future along with technological development and application scenario innovation. The company will gradually change from the original ISP to IPC SoC as the main product force, and its share will increase year by year; XVR SoC and automotive product lines will become new growth points.
Profit forecast: The company's revenue for 2023-2025 is expected to be 24.1/30.0/3.9 billion yuan, and the net profit of the mother is 4.6/58/780 million yuan, maintaining the “recommended” rating.
Risk warning: (1) market demand falls short of expectations; (2) the pace of customer introduction is slowing down; (3) the unattainability of profit forecasting and the inapplicability of valuation methods.