Changsha Jingjia Microelectronics Co.Ltd(300474) (300474)
Event: on December 10, Changsha Jingjia Microelectronics Co.Ltd(300474) held a new product launch of its flagship new product jh920 in Changsha. With the theme of “creating a ‘core’ vision and boundless application”, the launch showed the industry the performance and application scenarios of the new product jh920 in an all-round way.
Key investment points
The 9-series GPU has complete ecology and user applications can be directly transplanted and operated: in terms of graphic display interface, jh920 supports 4-channel independent display output, multi screen simultaneous output, 4-channel video decoding, 1-channel video coding and opengl4 0、Vulkan1. 1 and other graphic programming interfaces, supporting opengl3 0 computing programming interface, supporting 4 channels 4K@60fps HDMI2. 0 external video input. In terms of software and hardware equipment, jh920 fully supports domestic CPU, domestic operating system and domestic firmware. It can be widely used in PC, server, graphics workstation and other equipment to meet the display and calculation requirements of geographic information system, image matching, signal processing, onboard display and control, etc. In terms of game applications, jh920 can also support a variety of game engines, such as ogre, UE4, unity3d, etc., and can smoothly run a variety of different large-scale stand-alone games and online games. All frameworks and interfaces of jh920 comply with international industry standards and specifications. User applications do not need to be modified. They can be directly transplanted to jh920 and run directly.
The conference vividly demonstrated the 9-series GPU multi scene application, and the product performance was confirmed: at the conference site, Changsha Jingjia Microelectronics Co.Ltd(300474) set up a booth to show the participants, customers and leading experts jh920’s functions in online office, 4K high-definition film, digital instrument, general computing Games (Grand Theft Auto, red alert, King glory, etc.) and other typical applications. The company’s 9-series products run smoothly in various scenarios, with stable performance and proven product power. The release of the third-generation flagship new product jh920 indicates that Changsha Jingjia Microelectronics Co.Ltd(300474) has entered a new level in the field of domestic high-performance GPU.
Changsha Jingjia Microelectronics Co.Ltd(300474) has sufficient supply capacity and strong downstream demand. It is expected that orders will be formed in Q1 in 2022: Changsha Jingjia Microelectronics Co.Ltd(300474) is making product introduction and application adaptation with customers, and is also ready for batch supply. The supply capacity is guaranteed. Downstream customers recognize the company’s products and have strong demand. 9 series products have superior performance and are expected to enter the industrial information innovation and civil market. We expect Q1 to form orders in 2022. Compared with 7 series products, 9 series products will have higher market space and unit price. The shipment and pricing are expected to exceed market expectations. While significantly increasing the company’s revenue scale, it is expected to significantly improve the company’s profit quality.
Profit forecast and investment rating: we maintain Changsha Jingjia Microelectronics Co.Ltd(300474) the revenue forecast for 2021-2023 of RMB 1.332/21.16/31.50 billion, and the net profit attributable to the parent company of RMB 355 / 576 / 932 million, corresponding to EPS of RMB 1.18/1.91/3.10 in 2021-2023 and current PE of 144.80/89.18/55.10 times. At the product launch, the performance of the company’s new generation 9-series GPU has been greatly improved and the application scenario has been further expanded. The company’s valuation is switched from 2022 to 2022, giving the company 70 times PE and 40 times PS valuation multiples for military industry and chip business in 2022 respectively. The target market value is 70 billion yuan, corresponding to the target price of 233 yuan, maintaining the “buy” rating.
Risk tip: the promotion of localization policy is not as expected; China’s military spending and military industry informatization are less than expected; The company’s product R & D process was less than expected.
