Yachuang Electronics (301099)
The company is a well-known authorized distributor of electronic components in China. After 22 years of deep development, the company has the agency qualification of many international famous electronic component design manufacturers. It mainly distributes the products of original manufacturers such as Toshiba, Seoul semiconductor, Murata, Panasonic and LG, gradually accumulates technical experience in the distribution process, and has carried out power management IC design business since 2019, Realize the extension from the distribution market of electronic components to the upstream chip design market. At present, a number of self-developed products have passed aec-q100 certification and mass production. With the development of the company’s distribution business and the gradual increase of self-developed IC, the company’s performance has increased steadily and its profitability has improved significantly.
Focusing on the field of automotive electronics for a long time and creating an advantageous distribution mode of “supply chain + technology”, the company’s distribution products include optoelectronic devices, memory chips, passive components, etc., which are mainly used in the field of automotive electronics. After years of accumulation, the company has high-quality supplier and downstream customer resources, and continuously enhances technical support services. The company has accumulated a lot of information about the performance of electronic components and other key parameters in the process of promoting electronic components and parts; By participating in the development of different customers and projects, we have mastered a large number of application schemes of electronic components in different working environments, and gradually formed our own core technology. With the upgrading of electric vehicles and intelligence, the company’s distribution business is expected to usher in rapid growth, with a revenue of 1.3 billion yuan in 2021. At the beginning of 2022, the company acquired Yi Hytera Communications Corporation Limited(002583) , in order to rapidly expand the layout of passive components market in the field of automotive electronics business and enhance the influence of subdivided industries.
Anchoring automotive power management IC, self-developed products open up future growth space. The company acquired the power management IC business of tamul in South Korea in 2019 and obtained the core technology and personnel team to carry out the business. Since the formation of revenue in 2019, the company has developed rapidly. The self-developed vehicle specification chip has been supplied to well-known vehicle manufacturers such as Hyundai Motor, Chrysler and Volkswagen and has been used in mass production, which has a certain first mover advantage. China’s power management chip market has a huge space, the market share of local enterprises is low, and there is a huge space for domestic substitution in the future. At present, the company’s IC products are mainly motor drive chips, LED drive ICs, DC-DC, LDO and other categories. In the future, it plans to give full play to the first mover advantage, increase R & D and market investment, continue to add the reserve of technicians, establish Taiwan and mainland design teams, and continue to expand the existing product line. Benefiting from the wave of automobile electrification and intellectualization, lack of core and domestic substitution, we are optimistic that the company’s self-developed automobile IC business will continue to maintain rapid growth. We expect the company’s IC design business to achieve a revenue of 79 million yuan in 2021 and 200 million yuan in 2022, with huge growth space in the future.
It is suggested that the company will deeply benefit from the upsurge of the automotive electronics market driven by the continuous upgrading of automotive electronics, intelligence and networking. With the promotion of the acceleration of domestic substitution in the electronics industry, the company’s electronic component distribution business and power management IC business will usher in rapid development. Regardless of the impact of the Hytera Communications Corporation Limited(002583) consolidated financial statements, we expect the company to achieve operating revenue of 1.378 billion yuan, 1.948 billion yuan and 2.638 billion yuan from 2021 to 2023, with a year-on-year increase of 25.56%, 41.34% and 35.41% respectively; The net profit attributable to the parent company was 93 million yuan, 160 million yuan and 250 million yuan, with a year-on-year increase of 55.57%, 72.61% and 56.53% respectively; The current share price corresponds to 45, 26 and 17 times of PE from 2021 to 2023 respectively, which is recommended for the first time.
The risk indicates that the downstream demand is less than the expected risk, and the company’s self-developed IC expansion is less than the expected risk.
