\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 74 Changsha Jingjia Microelectronics Co.Ltd(300474) )
Domestic graphics display and control and GPU chip faucet
Changsha Jingjia Microelectronics Co.Ltd(300474) started from graphic display module. At present, its main business includes graphic display and control, small specialized radar and chip. Among them, graphic display and radar products are mainly used in military fields such as military aircraft, ships and armored vehicles. GPU is the main chip product. JM5 and jm7 series GPUs have achieved mass production and large-scale application. Jm9 series GPUs were also successfully streamed in September 2021 and completed performance test in November, which is expected to expand to the civil general market. Driven by the Xinchuang market, the GPU volume in 2021 drives the high growth of the company's performance. We expect the company's performance to maintain a high growth trend in 2022.
GPU: the core of computer graphic display, with high growth in the global market
GPU is a microprocessor that does image and graphics related operations on the computer. It adopts the stream parallel computing mode and is good at large-scale concurrent computing. It can be used for the calculation and processing of 2D and 3D graphics, as well as the fields of data mining and AI training that need a lot of repeated computing. GPU can be divided into integrated GPU and independent GPU, which are widely used in PC, server, game console, automobile, mobile and other fields. According to VMR data, the global GPU market in 2020 reached US $25 billion 410 million, and it was expected to reach US $246 billion 510 million in 2028 and CAGR at 32.82%. We estimate that the Chinese mainland market will be about 5 billion 920 million US dollars in 2020.
The company's GPU Xinchuang market is implemented in batches, and the new chip targets the civil market
The company has independently developed GPU and successfully commercialized it on a large scale. It has completed the mass production and application of two series of JM5 and jm7 and three GPU chips. The third generation jm9 series chips have been successfully streamed and completed the performance test. Jm7200 benchmarked NVIDIA gt640, participated in the construction of domestic ecology, and has completed the mass implementation of civil information and innovation market. The preliminary test of jm9 series can support the demand for high-performance display such as games and GIS, as well as the demand for AI computing. The performance is greatly improved. It is benchmarked with NVIDIA gtx1050, and the technical indicators are excellent. It is expected to help the company develop a wider GPU civil market and have broad domestic substitution space in the fields of PC, server and so on.
Profit forecast and investment suggestions: we believe that during the 14th Five Year Plan period, the revenue of military products of the company increased steadily, Xinchuang promoted the high revenue of GPU chip products, and jm9 series chips are expected to be in large quantities in the civil market. We expect the company's revenue to be RMB 1.149/18.01/2.599 billion and net profit to be RMB 281/4.50/659 million from 2021 to 2023 respectively. The target market value of the segment valuation in 2022 is 40.1 billion yuan and the target price is 133 yuan. It is rated as "overweight" for the first time.
Risk tip: the revenue growth of the company's products in military fields such as pattern / radar is lower than expected; The promotion speed of Xinchuang is lower than expected; The civil expansion speed of GPU chip is lower than expected; Industry competition intensifies.
