\u3000\u3000 Zhuhai Orbita Aerospace Science & Technology Co.Ltd(300053) (300053)
After years of deep cultivation, it is a leading enterprise in China Aerospace Electronics and satellite big data
The full name of the company is Zhuhai Orbita Aerospace Science & Technology Co.Ltd(300053) . It is the first IC design company in China to land on China’s gem. The company’s main business is divided into three parts: aerospace electronics, satellite and satellite big data, and artificial intelligence. Products (embedded SOC chip, three-dimensional packaging SIP module / system, artificial intelligence module / chip / system, etc.) serve aerospace, satellite big data, geographic information and other fields. In 2020, the net profit attributable to the parent company will turn losses into profits and usher in a performance inflection point. Under the influence of the epidemic in 2020, the company’s performance still maintained a high growth trend, with an annual operating revenue of 870 million, a year-on-year increase of + 2.13%; The net profit attributable to the parent company was 108 million yuan, turning losses into profits year-on-year. In 2021h1, the performance has improved steadily, and the multi index industry is improving. The business cycle is approaching. The company released the 2021 interim report. During the period, the company achieved an operating revenue of 329 million yuan (year-on-year – 3.70%), a net profit attributable to the parent company of 33 million yuan (year-on-year + 3.33%), and a net profit attributable to the parent company of 23 million yuan (year-on-year + 23.50%), with a steady increase in performance.
SoC / SIP core supplier, fully benefiting from the new infrastructure construction of Satellite Internet
There is a big gap in the level of global Internet access: by 2018, more than half of the population is below 3G or there is no Internet coverage. We believe that LEO Satellite Internet constellation is the core solution to realize global interconnection, which can realize global interconnection services with high bandwidth, high-performance global coverage, portable \\ embedded terminals, low cost and marginal cost. China has started the construction of launch capacity, carrying capacity and satellite manufacturing capacity, and built a foundation for large-scale constellation networking. According to our calculation, China may have 1-2 world-class Satellite Internet enterprises, benchmarking with the US SpaceX (Starlink) construction plan, and 12000 will be put into orbit by the end of the 16th five year plan; It is estimated that the total output value of China Spacesat Co.Ltd(600118) Internet from 2021 to 2035 may reach 933.77 billion US dollars (6116.194 billion yuan). At the constellation component manufacturing end, Zhuhai Orbita Aerospace Science & Technology Co.Ltd(300053) has been deeply cultivated for more than 20 years. At present, it has become the flagpole enterprise of China’s high-end aerospace sparcv8 processor SOC and the pioneer of three-dimensional packaging SIP Aerospace module / system. The two products have reached the leading technical level. To sum up, as a listed platform under the state owned assets supervision and Administration Commission of Zhuhai, taking into account its technical level, customer quality and other factors, we believe that the company’s SOC, sip, embC and other products will fully benefit from the construction of new infrastructure of Satellite Internet, and its performance is expected to be greatly improved.
The AI industry is empowered, and the corresponding products may enter a rapid volume period
AI chip refers to the processor chip used to run AI algorithm. It needs strong parallel processing ability to support AI program based on deep learning algorithm. According to China industry information network, the scale of global AI computer chip market showed rapid growth from 2019 to 2025. In 2020, the scale of global AI computer chip market was US $6.2 billion, a year-on-year increase of 37.78%; It is estimated that the global AI computer chip market will reach US $8.5 billion in 2021, with a year-on-year increase of 37.10%; It is estimated that the global AI computer chip market will reach US $30 billion in 2025. The company has a deep layout of AI industry, and now has a deep technical heritage. In terms of intelligent chips, the company has developed the first generation of artificial intelligence image processing AI module, face recognition intelligent terminal and other artificial intelligence products, which can provide safe and efficient core components for face recognition equipment providers and system integrators. In terms of artificial intelligence algorithm, the company is committed to the research of artificial intelligence algorithm to solve the current situation of traditional remote sensing data processing industry with strong artificial dependence and low processing efficiency. To sum up, we believe that the company’s in-depth layout of the artificial intelligence business field, the corresponding artificial intelligence chip and artificial intelligence algorithm have a deep technical foundation, and it is expected that the corresponding products will achieve rapid volume with the high business cycle of the industry.
Profit forecast and rating: To sum up, we believe that the company’s SOC, sip, embC and other products will fully benefit from the construction of new infrastructure of Satellite Internet, and the performance is expected to improve significantly. At the same time, the company continues to focus on the deep integration of Surveying and mapping + Remote Sensing Satellite big data + artificial intelligence, and the satellite big data business may accelerate production scheduling. Under this assumption, the company is expected to realize an operating revenue of 906 / 1032 / 1199 million yuan in 2021-23, the corresponding net profit attributable to the parent company is 112 / 130 / 152 million yuan, the corresponding EPS is 0.16/0.18/0.22 yuan, and the corresponding PS is 6.71/5.89/5.07x. Compared with the predicted PS of 9-11x of comparable companies in 2021, the corresponding target price range is 11.89-14.54 yuan / share, and the “buy” rating is given for the first time.
Risk tips: technical risks; Managing risks; Market expansion risk; Brain drain risk, goodwill impairment risk, etc.
