Steway (688213)
Focus on CMOS image sensors, with comprehensive product layout and stable and rapid performance growth. Since its inception, the company has focused on the R & D and sales of CMOS image sensors, forming fsi-rs series, bsi-rs series and GS series product matrix, which covers high, medium and low-end applications in various fields. Benefiting from the substantial increase in downstream application demand and the company’s development path from security monitoring to application expansion and product serialization in non security fields such as machine vision, intelligent automobile and consumer electronics, the company’s performance increased rapidly. The company’s operating revenue from 2018 to 2021 was 325 million yuan, 679 million yuan, 1527 million yuan and 2689 million yuan respectively, with a year-on-year increase of 109.21%, 124.86% and 76.1% from 2019 to 2021; The net profit attributable to the shareholders of the parent company was RMB -166 million, – 242 million, 121 million and 398 million respectively, with a year-on-year increase of – 45.38%, 150.04% and 228.93% from 2019 to 2021.
The company is a leading supplier in the global market in the field of security monitoring, with the first shipment in 2020. The field of security monitoring is the largest source of the company’s revenue, accounting for 98.44%, 92.62%, 82.13% and 72.82% respectively from January to September 2018 to 2021. With the extension of security from developed countries to developing countries, from first tier cities to second and third tier and rural areas, and the development trend of high-definition and intelligent cameras, the security CIS market is expected to continue to grow. The company has sufficient technical accumulation in the field of security monitoring. With the increasing enrichment of the company’s product line and the promotion of domestic substitution demand for high-end CIS, the company’s share in the high-end product market is expected to increase.
The company is one of the few suppliers in the field of machine vision, driven by technology and growing rapidly. The field of machine vision is the company’s second largest source of product revenue, with the revenue scale growing rapidly from 5.0668 million yuan in 2018 to 319585 million yuan (January September 2021). The company innovatively launched the global shutter CMOS image sensor with BSI structure and continued to iterate, breaking the monopoly pattern of Sony. At present, only three manufacturers worldwide, Stevie, Sony and howay, have the capacity of mass production of large-scale global shutter CMOS image sensors.
New entrants in the field of smart cars and smart phones have sufficient growth momentum. The company has actively laid out the field of on-board CIS and developed a series of on-board products with intelligent video image solutions covering ADAS system, DMS system and SAE automatic driving level. The application scenarios cover the application of intelligent on-board front loading and rear loading. A large number of goods have been delivered in the rear loading on-board Market, and the front loading is still in the introduction period, which is expected to be large in the future. As one of the few Chinese manufacturers with independent intellectual property rights that can provide in-chip vehicle specification, the company’s market share in automotive CIS is expected to be further improved. Smartphone is the largest segment of CIS in the world. In recent years, based on the trend of transition from dual camera phone to multi camera phone, the scale of smartphone CIS market still maintains a growth trend. The company’s technical advantages in the security application field have been recognized by some mainstream mobile phone brands. With the progress of product verification and market introduction, the sales scale and market recognition of the company’s products in the mobile phone field are expected to increase.
Investment advice
It is estimated that the company will realize operating revenue of 4.082 billion yuan, 5.941 billion yuan and 8.663 billion yuan respectively from 2022 to 2024, with a year-on-year increase of 51.8%, 45.6% and 45.8%; The net profit was RMB 611 million, RMB 869 million and RMB 1.252 billion respectively, with a year-on-year increase of 53.3%, 42.2% and 44.1%; The corresponding EPS is 1.53 yuan, 2.17 yuan and 3.13 yuan respectively. Based on the closing price of 56.66 yuan on May 20, the PE of the corresponding company from 2022 to 2024 are 37.1 times, 26.1 times and 18.1 times respectively. There is no rating for the first coverage.
Risk tips
Industry cycle risk, technology iteration risk, product R & D failure and application expansion less than expected risk, high concentration of suppliers and customers, etc.
