BATELAB(2149.HK):KEY DOMESTIC ANALOG PATTERNED WAFER PLAYER WELL POSITIONED TO HAVE MULTIPLE YEARS OF GROWTH AHEAD
BATELAB(2149.HK):KEY DOMESTIC ANALOG PATTERNED WAFER PLAYER WELL POSITIONED TO HAVE MULTIPLE YEARS OF GROWTH AHEAD
BaTeLab operates a full-stack analog IC design platform, empowered by proprietary EDA software tools and reusable IP library (over 400 IP modules). This helps it 1) ensure efficiency in IC design and wafer delivery, 2) mitigate the impacts from geopolitical challenges, and 3) achieve cost advantage.BaTeLab is one of the leading analog IC patterned wafer providers in China, focusing on the industrial-grade market. The company has developed the only full-stack design platform in China, integrating EDA, IP and design. We favor BaTeLab on 1) its unique position in the market (three differentiations from peers), 2) robust growth in revenue (38.0% 2023-26E CAGR, CMBIGM estimate) and the ability to maintain its margins (GPM/NPM at ~54%/23% in 2024/25E), 3) attractive valuation (the company currently trades at 10.3x 2024E P/E and 7.2x 2025E P/E, compared to 30.8x 2024E P/E of its HK-listed peers). Initiate with BUY and TP at HK$49.8.
BaTeLab是中國領先的模擬IC芯片晶圓供應商之一，專注於工業級市場。該公司已經開發了中國唯一的全棧設計平台，將EDA、IP和設計集成在一起。我們認爲BaTeLab有三個與衆不同之處：1）在市場上獨特的地位，2）收入增長穩健（2023-26E CAGR爲38.0%，CMBIGm估計），並有能力保持其利潤率（2024/25E GPM/NPm約爲54%/23%）；3）估值有吸引力（與其香港上市同行的2024E市盈率相比，目前該公司的市盈率爲10.3倍，2025E市盈率爲7.2倍，而其黃金股同行的2024E市盈率爲30.8倍）。我們建議買入，並將目標價定爲49.8港元。
BaTeLab is one of the leading analog IC patterned wafer providers in China. According to Frost & Sullivan (F&S), the company was the largest provider of analog IC patterned wafers in China by revenue in 2022, accounting for 1.7% of the total market. In terms of revenue, BaTeLab is only 0.4%/0.5% the size of the market's global leaders (suppliers of finished analog ICs), Texas Instruments (TXN US, NR) and Analog Devices (ADI US, NR) in 2023. BaTeLab mainly leverages resources from its partners to grow in the patterned wafer market at the current stage. The benefits are apparent: 1) it has achieved high revenue growth (73.6% 2020-2023 CAGR), 2) lowered operating cost (SG&A expenses only accounted for 7% of total revenue in 2023 vs. avg. 14% for its domestic and overseas peers), and 3) maintained a high margin (GPM was stable at 55%-57% during 2020-23).
BaTeLab是中國領先的模擬IC芯片晶圓供應商之一。根據Frost & Sullivan（F&S）的報道，該公司在2022年以收入計算是中國模擬IC芯片晶圓最大的供應商，佔據總市場的1.7%。就收入而言，BaTeLab在2023年僅相當於在全球主要的模擬IC芯片供應商Texas Instruments（TXN US，NR）和Analog Devices（ADI US，NR）的0.4%/0.5%。BaTeLab目前主要利用其合作伙伴的資源，在目前的模擬芯片晶圓市場上實現增長。帶來的好處明顯：1）實現高收入增長（2020年至2023年複合年增長率爲73.6%），2）降低運營成本（2023年SG&A費用僅佔總收入的7%，低於其國內外同行業平均14%），以及3）保持高利潤率（2020-23年間GPm穩定在55%-57%）。
BaTeLab focuses on the industrial-grade market, a long-tail market with high growth potential, diversified demands and relatively less intensified competition than consumer-grade market. According to F&S, the TAM of industrial-grade analog IC market in China is expected to grow at a 9.5% 2024E-27E CAGR, reaching RMB242bn by 2027E, benefiting from the trends of intelligent automation and digital transformation in industrial applications. BaTeLab ranked No.5 in China with 0.4% market share in 2022, with the industry leader commanding a mere 0.8% market share in a highly fragmented market. We believe the market share will be consolidated towards the leaders.
BaTeLab專注於工業級市場，這是一個具有高增長潛力、需求多元化且相對較少競爭的長尾市場。據F&S估計，中國工業級模擬IC市場的TAm預計將以9.5%的2024E-27E年複合增長率增長，到2027E時將達到2420億元人民幣，受益於工業應用的智能自動化和數字化轉型趨勢。BaTeLab在2022年以0.4%的市場份額排名第五，而行業領先者在高度分散的市場中僅佔0.8%的市場份額。我們認爲市場份額將向領先者集中。
BaTeLab operates a full-stack analog IC design platform, empowered by proprietary EDA software tools and reusable IP library (over 400 IP modules). This helps it 1) ensure efficiency in IC design and wafer delivery, 2) mitigate the impacts from geopolitical challenges, and 3) achieve cost advantage.
BaTeLab運營着一個全棧模擬IC設計平台，擁有專有的EDA軟件工具和可重複使用的IP庫（超過400個IP模塊）。這有助於確保IC設計和晶圓交付的效率，減輕地緣政治挑戰的影響，並實現成本優勢。
We initiate coverage on BaTeLab (2149 HK) with BUY and TP at HK$49.8, based on 19x 2024E P/E (1-year historical avg. forward P/E of its HK-listed semi peers). Its share currently trades at 10.3x 2024E P/E, which is attractive in our view, for investors investing in H-share China semi names. We expect BaTeLab's revenue to grow 40% YoY in 2024E, while its peers' avg. revenue is estimated to grow only 1.6%, per Bloomberg consensus. Potential risks: 1) volatile economic conditions; 2) change in relationship with its core customers or suppliers; and 3) slower-than-expected introduction of new product categories.
我們建議以買入價購買BaTeLab（2149 HK），並將目標價定在49.8港元，基於19倍2024E市盈率（其香港上市同行的1年曆史平均前/後市盈率）。目前，其股票交易價格爲10.3倍2024E市盈率，在我們看來非常有吸引力，適合投資於H股中國半導體股票的投資者。我們預計BaTeLab的收入在2024E年同比增長40%，而同行的平均收入增長率僅估計爲1.6%，根據Bloomberg的共識。可能的風險包括：1）不穩定的經濟狀況；2）與核心客戶或供應商關係的變化；以及3）新產品類別的推出低於預期。
譯文內容由第三人軟體翻譯。