\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 74 Changsha Jingjia Microelectronics Co.Ltd(300474) )
Event: on March 17, Changsha Jingjia Microelectronics Co.Ltd(300474) announced that it had reached a strategic cooperation with a public security industry information company, and the two sides jointly carried out the market promotion of public security dedicated PC, server and public security overall application system solutions. On the same day, Changsha Jingjia Microelectronics Co.Ltd(300474) announced that it had obtained an order for 1 China Baoan Group Co.Ltd(000009) -series chips from a company.
Key investment points
Changsha Jingjia Microelectronics Co.Ltd(300474) break through the party and government e-government market. On March 17, Changsha Jingjia Microelectronics Co.Ltd(300474) announced that it had signed a strategic cooperation agreement with a company involved in public security industry informatization. The company has long-term business cooperation with public security departments in many provinces and cities across the country, and is responsible for product registration and application license application of public security dedicated PCs and servers. This strategic cooperation marks the opening of the party and government e-government market. Among them, the public security e-government market is large and has high requirements for product confidentiality. This strategic cooperation proves that Changsha Jingjia Microelectronics Co.Ltd(300474) products have been recognized by relevant industries.
9 series chips broke through the industry Xinchuang and obtained 100000 large orders. The company announced that a company plans to purchase 100000 chips of 9 series from Changsha Jingjia Microelectronics Co.Ltd(300474) and this series of products can meet the needs of high-performance display such as geographic information system, media processing, CAD aided design, games, virtualization and Artificial Intelligence Computing. The 100000 orders not only prove that Changsha Jingjia Microelectronics Co.Ltd(300474) has entered a broader industry information innovation market, but also prove that Changsha Jingjia Microelectronics Co.Ltd(300474) 9 series chip products have excellent performance and can meet high-end demand.
Compared with 7 series products, 9 series products get orders faster The test of the Changsha Jingjia Microelectronics Co.Ltd(300474) 7 series product jm7200 was completed in September 2018 and the first order with a contract amount of 145000 yuan was obtained in March 2019. The basic test of 9 series products was completed in November 2021 and 100000 orders were obtained in March 2022. We expect the single chip price to be more than 500 yuan. Whether in terms of time rhythm or order scale, 9 series products are better, which shows the significant improvement of the company’s product power and market recognition. The follow-up market development progress is expected to exceed that of 7 series products in that year.
New market opens up new space for domestic GPU leaders: the company’s 7-series chip revenue in 2021 mainly comes from the party and government electronic document market. The company’s newly entered party and government e-government and industry information creation market space is much larger than the party and government electronic document market. The shortage of chips continues, the global GPU giants further focus on the high-end market, and it is difficult to meet the demand of the medium and low-end market. As the leader of domestic GPU, Changsha Jingjia Microelectronics Co.Ltd(300474) has satisfied the demand for product performance, guaranteed production capacity and strong performance certainty.
Profit forecast and investment rating: Changsha Jingjia Microelectronics Co.Ltd(300474) cut into the party and government e-government market through strategic cooperation. The performance of 9 series products was recognized by customers, and 100000 orders were won, opening a new market space. We are optimistic about the development potential of the company as the leader of domestic GPU, but due to the large R & D investment of the company, we lowered the net profit attributable to the parent company from Changsha Jingjia Microelectronics Co.Ltd(300474) 2021 to 2023 to 294 (- 0.61) / 4.09 (- 1.67) / 528 (- 404) million yuan, corresponding to 109 / 78 / 61 times of the current PE, maintaining the “buy” rating.
Risk warning: the promotion of localization policy is not as expected; China’s military expenditure and military industry informatization are less than expected; The company’s product R & D process is less than expected.
