Shanghai Awinic Technology Co.Ltd(688798) (688798)
Investment summary
Epidemic disturbance and vehicle regulation products occupy 8-inch production capacity, and domestic demands of analog chips are increased
The manufacturing process of analog chip is generally below 50nm, and the corresponding wafer is mainly 8 inches. Due to the disturbance of the epidemic situation in the past two years, the production capacity of power management chips of overseas companies is tight, the rapid and large-scale production of new energy vehicles is superimposed, and the increase in the demand for on-board chips further occupies the production capacity of 8-inch chips. The tight supply of analog chips in the field of consumer electronics has brought structural opportunities to domestic enterprises.
Shanghai Awinic Technology Co.Ltd(688798) is a domestic analog chip in the field of consumer electronics, and the volume and price of core assets rise together to boost the performance
Shanghai Awinic Technology Co.Ltd(688798) business focuses on digital analog hybrid, analog, RF and other IC design, and its applications cover mobile phones, wearable devices, automotive electronics, other intelligent terminals and other directions. The company’s product lines are mainly power management, RF devices, audio chips and motor drives. Combined with the continuous development of the company’s product lines, the company’s performance is expected to continue to usher in the simultaneous rise of volume and price. The company’s future key growth businesses include: (1) From the perspective of power management chips, the company’s products include backlight drive, flash drive, LDO, Buck / boost chips, etc. the average price of power management chips in 2020 is 0.38 yuan. From the perspective of the company’s technical reserves, AMOLED drive chips, fast charging chips, etc. are in large quantities, and the unit price of products is expected to increase significantly. The breakthrough in the value of single mobile phone opens space for the growth of the company; (2) From the perspective of RF devices, the company is based on low-noise amplifier and RF switch, and gradually upgrades to lnabank, nrlfem and RF modules including filters. Combined with the large global sales base of smart phones, RF modules are expected to provide pulse growth for the company’s performance; (3) From the perspective of audio chips, 5g mobile phones and smart terminals have higher requirements for audio chips. According to the data disclosed by the company, the unit price of digital smart K-series chips is nearly doubled compared with traditional products. At present, the products have ushered in the performance cashing period; (4) The company’s motor-driven performance is growing rapidly. The performance growth is mainly due to the large volume of linear motor for touch and voice coil motor product lines, and the market share of related products still has great room for improvement.
Profit forecast
We expect the company to achieve operating revenue of 2.332 billion yuan, 3.75 billion yuan and 5.300 billion yuan from 2021 to 2023, with a year-on-year increase of 62.2%, 60.8% and 41.3% respectively; The net profit attributable to shareholders of the parent company was 234 million yuan, 419 million yuan and 633 million yuan, with a year-on-year increase of 130.6%, 78.6% and 51.1% respectively; EPS is 1.41 yuan, 2.52 yuan and 3.81 yuan respectively, and the corresponding PE is 150x, 84x and 55x. The “buy” rating will be given for the first time in the next six months.
Risk statement
(1) Analog chip price fluctuations affect the company’s performance; (2) product line development and market-oriented application are less than expected.
