1. Key points of investment this week
This week’s investment theme: intellectualization is the second half of the century’s automotive industry reform, which is in the development stage from 0 to 1. At present, automotive intelligent hardware and software products are in full bloom to accumulate energy for the breakthrough of automotive intellectualization. The development focus of automotive semiconductors is gradually shifting from electrification to intellectualization, and the core companies of the intelligent automotive industry chain are expected to benefit fully, Give a “recommended” rating.
The change of the focus of automotive semiconductors: from electrification to intelligence. The automotive industry in the past century is experiencing an era of great changes, and the trend is to make cars electric and intelligent. Modorintelligence data predicts that the compound growth rate of automotive applications will reach 10.3% in the semiconductor downstream applications in the next five years, ranking first in all industries. Separately, in terms of electrification, power devices, especially IGBT, benefit most from automobile electrification. According to omdia data, the market scale of automobile power devices will be US $4.5 billion in 2020, and it is expected that the market scale of automobile power devices will reach US $9.2 billion (cagr15%) by 2025; In terms of intellectualization, at present, automobile intellectualization is in the stage of 0-1. On the basis of electrification, automobile intellectualization ushers in a window of rapid development. The demand for automobile sensing devices, computing power and data volume such as automatic driving and intelligent cockpit is increasing day by day. There is a broad growth space for automobile control chips, storage chips, analog chips and sensors. At the current time node, the lack of automobile core promotes the localization of automobile chips, and automobile semiconductor is at the intersection of automobile and semiconductor. It is expected to stand on the historical process and usher in historic development opportunities. We believe that the focus of automotive semiconductors in the previous market is more on electrification, and the focus of automotive semiconductors will gradually shift from electrification to intelligence in the future.
With the help of automobile intelligence, SOC chip, sensor and memory chip enterprises enjoy preferential dividends. We believe that the realization of automotive intelligence on the hardware side mainly comes from the improvement of automotive electrical architecture, perception, computing power and data storage capacity. Automobile sensors determine the ability of automobile to perceive the environment. Under the general trend of intellectualization, hardware such as on-board camera, laser radar and millimeter wave radar are increasingly becoming the standardized configuration of automobile, and the value, penetration and market space of single vehicle are increasing rapidly. Asahi big data predicts that by 2026, the market scale of lidar applied in automotive and industrial fields is expected to reach US $5.7 billion (cagr21%), of which the market share of advanced driving assistance system (ADAS) is expected to reach 41% in 2026, becoming the main sub market of lidar. The main enterprises of automotive sensors in China include CIS leader Will Semiconductor Co.Ltd.Shanghai(603501) , vehicle lens / module enterprise Shunyu optics, Lianchuang Electronic Technology Co.Ltd(002036) , laser radar industry chain enterprise torch technology (light source and module), Zhejiang Lante Optics Co.Ltd(688127) (lens), Ningbo Yong Xin Optics Co.Ltd(603297) (lens), Optowide Technologies Co.Ltd(688195) (optical components), etc; The SoC chip mainly affects the core safety and driving aspects, such as image information processing, automatic driving system control, display and operation of the central control system, engine, chassis and body control, etc. IHS data show that the global automobile SoC chip market in 2020 is about 3 billion 800 million US dollars, and it is expected to grow to 8 billion 200 million US dollars by 2025, CAGR16. 6%, logic chip leaders NVIDIA, Qualcomm, Intel and AMD are leading in this field, and the main enterprises in China are Allwinnertech Technology Co.Ltd(300458) (smart cockpit SOC), Rockchip Electronics Co.Ltd(603893) ; Storage chips are used in many automotive modules. In order to achieve the interconnected storage basic code, data and parameters of the automatic driving vehicle, intellectualization makes the volume of vehicle data grow rapidly, and drives the demand for mainstream storage chips such as DRAM and NAND to grow rapidly. According to the root IHS data, the global vehicle storage market space in 2020 is about 4 billion US dollars, and it is expected to reach 8 billion 300 million US dollars by 2025, CAGR15. 7%, China’s major enterprises include Ingenic Semiconductor Co.Ltd(300223) (on-board storage), Gigadevice Semiconductor (Beijing) Inc(603986) .
Key recommended targets: (1) automotive semiconductors: in terms of automotive sensors, we mainly recommend: Will Semiconductor Co.Ltd.Shanghai(603501) , and benefit targets: Ju Guang technology, Ningbo Yong Xin Optics Co.Ltd(603297) , Zhejiang Lante Optics Co.Ltd(688127) ; In terms of power devices, we mainly recommend: Starpower Semiconductor Ltd(603290) , Zhuzhou Crrc Times Electric Co.Ltd(688187) , Jiangsu Jiejie Microelectronics Co.Ltd(300623) , Wuxi Nce Power Co.Ltd(605111) , and benefit target: Hangzhou Silan Microelectronics Co.Ltd(600460) ; For automobile simulator parts, we mainly recommend: Sg Micro Corp(300661) , 3Peak Incorporated(688536) , the beneficiary object, Yachuang electronics; In terms of car storage, we recommend: Ingenic Semiconductor Co.Ltd(300223) , Gigadevice Semiconductor (Beijing) Inc(603986) . (2) Semiconductor equipment and materials, the core equipment and materials in the upper reaches of the semiconductor industry chain are the basis of capacity expansion. At the same time, the industry barriers are high, the pattern is good, and the certainty of performance growth is high. Key companies: Naura Technology Group Co.Ltd(002371) , Beijing Huafeng Test & Control Technology Co.Ltd(688200) , Jiangsu Yoke Technology Co.Ltd(002409) , Hangzhou Lion Electronics Co.Ltd(605358) , and the beneficiary objects: Wuhan Jingce Electronic Group Co.Ltd(300567) , shengmei Shanghai, Gl Tech Co.Ltd(300480) , Hubei Dinglong Co.Ltd(300054) , Hmt(Xiamen)New Technical Materials Co.Ltd(603306) ; (3) Wafer foundry or IDM, the production capacity is king under the background of shortage, and key companies: Semiconductor Manufacturing International Corporation(688981) , Huahong semiconductor, etc; (4) In the field of non semiconductors, we mainly recommend: Shenzhen Transsion Holdings Co.Ltd(688036) , and benefit targets: Goertek Inc(002241) , Wuhu Token Sciences Co.Ltd(300088) ; In the panel industry, we recommend: Boe Technology Group Co.Ltd(000725) and Tcl Technology Group Corporation(000100) .
Risk tips: (1) the deterioration of the epidemic leads to the weakening of terminal demand, which affects the demand for semiconductors, which is less than expected; (2) The capacity expansion progress of China’s major wafer factories is less than expected; (3) The research and development progress of key semiconductor technology is less than expected; (4) The deterioration of Sino US relations and the risk of interruption of supply of key equipment, components and raw materials; (5) The performance of key recommended enterprises is less than expected
