Main points of investment
Focus on high-performance analog IC design, benefit from the domestic replacement of analog chips. The company has a complete product line, covering two series of signal chain and power management, with more than 1400 product models, widely used in consumer electronics, automotive electronics, intelligent LED lighting, communication equipment, industrial control and security, as well as medical devices and other markets. The core team of the company comes from Xiantong Semiconductor and has strong technical accumulation in the field of signal chain analog switches, and has become one of the top ten suppliers of analog switch chips in the world.
Continue to optimize product structure and expand new customers and new markets. The company continued to promote product upgrading and optimization, and profitability rose against the trend, with gross profit margin rising from 39.81% in 2019 to 56.67% in the first three quarters of this year. In addition, it has also achieved important results in customer expansion, entering the supply chain system of well-known terminal brands such as Samsung and Alphabet Inc-CL C, and opening up new incremental markets.
Automotive chips are about to enter the stage of mass production, driving future performance growth. The automotive market is the second largest downstream application market for analog chips, and the company actively arranges car-scale analog chips, including switches, operational amplifiers, LDO, motor drivers and LED Driver products, some of which have begun to be verified on board and will gradually enter the stage of mass production, which is expected to drive the company's performance growth in the next few years.
Investment suggestion
It is estimated that the company's revenue from 2022 to 2024 will be RMB 883.258 million, the net profit from home will be RMB452 million, and the EPS will be RMB1.79, respectively. The current share price will be times higher than that of PE in 49-31-22, and the company will be given a "buy" rating for the first time.
Risk Tips:
The progress of market expansion is not as expected, downstream demand continues to be weak, and the development of new products such as automotive chips is not as expected.