Yachuang Electronics (301099)
The company has focused on the distribution business of automotive electronic components for 22 years. The company has acquired relevant business assets of power management IC through tamul, and carried out continuous technology R & D, product development and business development, gradually realizing the import substitution of automotive power management IC. At present, it has been recognized by Chinese Geely, Chang’an and other manufacturers.
Key investment points
Electronic component distribution + power management IC design, two wheel drive, the company has entered the fast lane of development
The company is a famous authorized distributor of electronic components in China. It has been engaged in the distribution of electronic components for 22 years. Its suppliers include international well-known electronic component manufacturers such as Toshiba, Panasonic, Seoul semiconductor and South Asia. The company has gradually accumulated relevant technologies in the distribution business of electronic components and expanded the Power Analog IC design business. The company’s equity is concentrated, and due to the expansion of Power Analog IC design business, the company pays more and more attention to R & D capability. In Q3 of 2021, the company’s revenue was 981 million, with a year-on-year increase of 34.83%; The net profit attributable to the parent company was 55 million yuan, with a year-on-year increase of 165.64%. The profitability of the company increased greatly and began to enter the fast lane of development.
Distribution business: the “basic plate” for the company to maintain steady development
The company has stable distribution business suppliers, including Toshiba, Panasonic, Seoul semiconductor, South Asia and other well-known international semiconductor manufacturers; Downstream customers of the business are also of high quality, including Tier1 auto enterprises in the automotive electronics sector and well-known Internet manufacturers such as Alibaba and Baidu. The products distributed by the company are mainly supplied to the automotive electronics field, and have advantages in some automotive electronics sub fields, such as automotive lighting field, automotive storage field and automotive LED field. In addition, the company’s distribution system is quite unique, “supply chain service + technical service” makes the competitiveness of the company’s electronic component distribution business to a higher level.
Self developed products: the “sharp blade” for the company to achieve rapid development in the future
After having a lot of distribution experience in the field of automotive electronics, the company gradually accumulated its own technology, acquired tamul power management IC business in 2018, and officially expanded its own power management IC design business. The company’s power management IC business has developed rapidly, and has established a mature automotive power management IC product matrix in only three years; In addition, many products have passed the qualification certification of vehicle specification level electronic products for downstream high-quality vehicle enterprises such as Chrysler, Volkswagen, FAW Group, SAIC GM Wuling and so on; In addition, with the first mover advantage brought by the Korean team, the company will continue to increase investment in automotive chip projects and continuously expand its product line.
Profit forecast and valuation
We expect the company to achieve a revenue of RMB 1.299/16.92/2.150 billion and a net profit attributable to the parent company of RMB 97/1.51/218 million from 2021 to 2023. Considering that the company has mature distribution business and self-developed business with high growth, we adopt PE valuation method for distribution business and give 25xpe with reference to comparable companies. PS valuation method is adopted for self-developed business, and 32xps is given by reference to comparable companies. Corresponding to the company’s market value of 10.3 billion in 2022, it is rated as “buy”.
Risk statement
Suppliers are too centralized; The development of technical level is less than expected; The expansion speed of automobile market is lower than expected; The business expansion speed of power management IC is lower than expected.
