Nano core micro (688052)
Isolation chip products have made breakthroughs, and strong technical barriers help rapid development
Guided by the market demand and starting from the sensor signal conditioning ASIC chip, the company has expanded to the front and back end and launched integrated sensor chip, isolation and interface chip, drive and sampling chip, forming the product layout of signal sensing, system interconnection and power drive. The overall development of the company has experienced three stages: start-up period → expansion period → rapid business rise period, corresponding to the expansion of the company's product categories and the expansion of downstream application fields. Based on its independent intellectual property rights and rich IP accumulation in MEMS, isolation, mixed signal chain processing and other fields, the company has strong technical barriers and talent accumulation to help the company achieve rapid development. The management team of the company has rich professional background. The controlling shareholders and actual controllers of the company are Wang Shengyang, Sheng Yun and Wang Yifeng. Among them, Wang Sheng, Yang Sheng and Sheng Yun both worked as design engineers in ADI (yanoder semiconductor technology Shanghai Co., Ltd.) and as R & D director and R & D Manager in Wuxi Naxun micro. In addition, the director of the company's IC Design Center, the director of signal conditioning product line and the director of isolation and interface product line have all served as engineers in ADI. Since 2018, the company has entered a period of rapid development. Since 2020, the company has made great breakthroughs in the fields of information communication, industrial control and new energy vehicles, and is expected to drive the company to maintain rapid growth in the future. According to the first quarterly report of the company, Q1 company achieved a revenue of 339 million yuan in 2022, with a year-on-year increase of 146.17%, and the net profit attributable to the shareholders of the parent company was 84.3 million yuan, with a year-on-year increase of 148.22%, mainly due to the steady growth of the sales revenue of signal sensing chips, isolation and interface chips and the substantial growth of the sales revenue of driving and sampling chips.
Make breakthroughs in many fields and strive to become a leading automotive chip supplier in China
The company's products cover analog and mixed signal chips in the technical field. In 2021, the company shipped more than 1.3 billion chips, which are widely used in the fields of information communication, industrial control, automotive electronics and consumer electronics. The downstream applications of the company's products include information and communication, industrial control, automotive electronics and consumer electronics. The revenue accounts for 34.09%, 22.24%, 13.23% and 30.44% respectively in 2020. Relying on its excellent vehicle specification level chip development ability and rich experience in mass production and quality control, the company has actively arranged chip products applied in the field of automotive electronics, and has successfully entered China's mainstream automotive supply chain and realized batch loading. With the product coverage from consumer level, industrial level to vehicle specification level and the ability to accurately grasp the customer's application scenarios, the company has been recognized by many industry leading benchmark customers, including customer a, Zte Corporation(000063) , Shenzhen Inovance Technology Co.Ltd(300124) , Honeywell, zhixinwei, Sungrow Power Supply Co.Ltd(300274) , Hangzhou Hikvision Digital Technology Co.Ltd(002415) , Wuxi Weigan, etc., and has been supplied in batches. According to the company's prospectus, the vehicle specification chip has been mass loaded in Byd Company Limited(002594) , Dongfeng Automobile Co.Ltd(600006) , Wuling Automobile, Great Wall Motor Company Limited(601633) , SAIC Maxus, FAW Group, Contemporary Amperex Technology Co.Limited(300750) , Kunming Yunnei Power Co.Ltd(000903) and other terminal manufacturers, and has entered the supply system of SAIC Volkswagen, United Automotive Electronics, Sensata and other terminal manufacturers.
Upgrade the application field of domestic analog IC to find sufficient market and profit space
According to Frost & Sullivan statistics, the scale of China's analog chip market accounts for more than 50% worldwide. It is the world's main analog chip consumer market, and the growth rate is higher than the overall growth rate of the global analog chip market. In 2020, the market scale of China's analog chip industry was about 250.35 billion yuan, with an annual compound growth rate of about 5.8% from 2016 to 2020. With the two wheel drive of new technologies and industrial policies, China's analog chip market will usher in development opportunities in the future. It is expected that China's analog chip market will grow to 333.95 billion yuan by 2025, with a compound annual growth rate of about 5.9%. According to different levels of demand for product stability, analog chip downstream industries can be divided into traditional consumer electronics industries and industries with high requirements, communications and automotive electronics industries. Due to the relatively low stability requirements of consumer electronics products, compared with high-end markets such as automobiles, the access threshold of consumer electronics suppliers is relatively low and the verification cycle is relatively short, resulting in a large number of market participants and small profit space. Analog chip manufacturers are seeking greater market space and profit space through high-end and diversification of their products. In the environment of trade friction, analog chip manufacturers that can meet the needs of high-end applications will enter the qualified supplier system of leading manufacturers in automobile, industry, communication and other industries, realize the upgrading of application fields and obtain market space and profit space dividends.
Profit forecast
We estimate that the company's revenue from 2022 to 2024 will be 1.507 billion yuan, 2.244 billion yuan and 3.056 billion yuan respectively, with a year-on-year increase of 74.8%, 48.9% and 36.2%; It is estimated that the net profit attributable to the shareholders of the parent company will be 439 million yuan, 728 million yuan and 911 million yuan, with a year-on-year increase of 96.3%, 65.7% and 25.2%. The EPS will be 4.34 yuan, 7.20 yuan and 9.01 yuan respectively, and the PE corresponding to the closing price of 263.96 yuan on April 27, 2022 will be 60.75 times, 36.66 times and 29.28 times respectively. From the perspective of valuation, compared with China's comparable leading IC design companies, the average PE in 2023 is about 54 times. In view of the company's leading position in the field of vehicle specification analog chips and sufficient growth space in the future, we give a "buy" rating for the first time.
Risk tips
The sales of automotive electronics are uncertain, the downstream demand is less than expected, the business performance cannot grow continuously and rapidly, and the wafer production capacity is tight.
