\u3000\u3 Guocheng Mining Co.Ltd(000688) 798 Shanghai Awinic Technology Co.Ltd(688798) )
Core conclusion
Summary content
Analog chip leader in the field of consumer electronics, with four product lines. Founded in 2008, the company is a chip design company focusing on Simulation in China. Its main products include audio power amplifier chip, power management chip, RF front-end chip, motor drive chip, etc. the product model is about 800. The downstream takes the smart phone market as the application core, and its customers cover well-known mobile phone manufacturers and ODM manufacturers.
From 2017 to 2021, the company’s operating revenue CAGR was 45.2%, and the net profit attributable to the parent company CAGR was 79.4%.
Audio power amplifier: the company’s flagship product, forming a product line with full coverage of high, medium and low. The company has been deeply engaged in the field of audio power amplifier for more than ten years and has formed a complete product system. It is the main supplier of audio power amplifier chips in smart phones all over the world. As the market presents the application trend from analog audio chip to digital audio chip, the company continues to launch a variety of digital audio chips, and the shipment of high-end products further increases.
Power management: continuously enrich the variety of products and pay attention to the large amount of new products of the company. The driver chip and overvoltage protection in the company’s power management chip have a high market share in the global smartphone field. In terms of new products, the company focuses on the layout of LED driver, screen module and charging charger. The layout and volume of new products with high unit price are expected to become a major focus in the future.
RF front-end and motor drive: grasp the market cutting-edge trend and continue to invest in R & D. The company focuses on the high-frequency switch and low-noise amplifier of 5g RF front-end, and gradually expands the whole series of 5g RF front-end chips. The products have been verified and used by customers one after another. In terms of motor drive, the company invested in R & D earlier, took the lead in seizing market opportunities, and successfully entered the downstream mobile phone customer market, with rapid product volume.
Investment suggestion: it is estimated that the operating revenue of the company from 2022 to 2024 will be RMB 3.694 billion, RMB 5.727 billion and RMB 8.601 billion respectively, and the net profit attributable to the parent company will be RMB 438 million, RMB 688 million and RMB 1.085 billion respectively. Considering that the company is in a period of rapid growth, with the expansion of item number and product iteration, it is given 70 times PE in 2022, corresponding to the target price of 184.56 yuan. It is covered for the first time and given a “buy” rating.
Risk warning: the company’s new product development is not as expected; Fluctuations in downstream demand of the industry; Risk of declining market risk appetite
