\u3000\u3000 Will Semiconductor Co.Ltd.Shanghai(603501) (603501)
Review the history of mobile phone business and look forward to the layout of automobile business. Howell has formed the layout of three business systems in mobile phone business: image sensor solution, touch and display solution and simulation solution. Based on the diversified layout and successful experience in mobile phone business, Weill also has many product layouts and great development potential under the general trend of intelligent electric vehicle development. We summarize Weir's product layout and development direction in the automotive business from three aspects: 1. Deep layout of the core components of the automatic driving perception layer: CIS and serdeslvds; 2. Important participants of intelligent cockpit: ar-hud based on LCOS scheme, on-board screen touch display driver chip and on-board acoustic MEMS chip; 3. Omnidirectional layout of automotive semiconductors: Based on the accumulation of original technology, it is extended to vehicle MCU, simulation, power semiconductors, etc. at the same time, the omnidirectional layout of automotive semiconductors is carried out with the help of industrial fund Weihao Chuangxin.
Eye of autopilot: deep layout around on-board CIS. As a core part of the intelligent automobile wave, automatic driving has been increasing rapidly in recent years. Visual perception plays a major role in the perception layer of the automatic driving system. With the continuous improvement of the number of cameras and pixels carried by a single car, the scale of the on-board CIS market continues to increase. It is expected that the scale of the global automotive CIS market will reach about US $5 billion in 2025 and more than US $10 billion in 2030. The number of cameras carried by a single car is also expected to increase from the current 2 + to more than 10. Howell has been deeply engaged in the automotive CIS field for more than 15 years. In addition to the perfect CIS product and technical layout, it also has the ability to provide supporting ISP / ASIC chips. At the same time, the company's lvdsserdes on-board video transmission chip is also actively developing. At present, it has completed the product sample delivery and is expected to contribute to the increment in 22-23 years.
Important participants in smart cockpit: from ar-hud to on-board display drive. From the hardware level, the intelligent cockpit can be mainly divided into three systems: cockpit system, Infotainment System and other systems. Based on its technical accumulation in LCOS, tddi and other fields, Howell is expected to deeply participate in various systems of intelligent cockpit: the trend of cockpit system ar-hud is determined, and LCOS is expected to continuously increase its share as one of the mainstream technical solutions; The information and entertainment system takes the screen as the core, and the trend of multi screen is obvious. Howell tddi and other touch display chip solutions are expected to extend from mobile phones to vehicle display.
Other automotive chip layouts: MCU, PMIC and power. In addition to focusing on the in-depth layout of Howell's CIS business and LCOS, tddi and other technologies, weir also has a lot of technology and product accumulation in the field of general chips such as MCU, PMIC and power, which is expected to open a market space of more than 10 billion US dollars. At present, the company's LDO products have passed the vehicle regulation certification, and MCU products are expected to complete the sample delivery in H1 2022.
Investment suggestion: it is estimated that the net profit attributable to the parent company in 21, 22 and 23 years will be 4.693/61.53/8.013 billion yuan respectively, the corresponding EPS will be 5.36/7.03/9.15 yuan respectively, and the corresponding PE will be 49 / 37 / 29 times respectively. In terms of valuation, considering the business layout and growth space of the company in the field of automotive semiconductors and referring to comparable companies, the company is given 50 times PE in 2022, corresponding to the target price of 351.5 yuan, maintaining the "recommended" rating.
Risk warning: the company's new product research and development is less than the expected risk; Downstream industry boom decline risk; Market competition intensifies risks.
