Juchen (688123) new stock analysis： domestic EEPROM chip leader 5G and multi-camera drive long-term growth
Juchen (688123) new stock analysis: domestic EEPROM chip leader 5G and multi-camera drive long-term growth
Juchen is the leader in domestic EEPROM chips, and the market share of smartphone cameras is the largest in the world.The products have entered mainstream mobile phone manufacturers at home and abroad such as Huawei, Samsung.Driven by factors such as the replacement of smartphone stocks by 5G commercial use, dual- and multi-camera penetration enhancements, and camera module upgrades, smartphone demand for EEPROM will continue to grow.As a leader in domestic market segments, the company’s performance is expected to grow further.In addition, the company has expanded its voice coil motor drive and smart card chip business around EEPROM technology. Juchen shares focus on EEPROM chip design: the company’s main products include EEPROM, voice coil motor driver chip and smart card chip.In terms of EEPROM, the company is the third-ranked global product supplier in 2018, accounting for about 8 worldwide.With a market share of 17%, it ranks first in China.The operating income of 1H companies in 2019 were 2.390,000 yuan, an increase of 6 in ten years.32%, the ratio has improved in previous years, mainly due to the downstream customer switching solution.As of 1H 2019, the company has a total of 64 R & D personnel, accounting for 42 of the total number of employees.38%, R & D expense ratio reached 11.65%. Benefiting from 5G and multi-camera drivers, product demand has steadily increased: EEPROM is a pluggable memory that supports electrical reset, and is mainly used in smart phone cameras, LCD panels, automotive electronics and other fields.Driven by factors such as the replacement of smartphone stocks by 5G commercial use, the increase of multi-camera penetration and the upgrade of camera modules, the demand for EEPROM in smartphones will continue to grow.In addition, the company’s voice coil motor driver chip is an important component of smart phone cameras, and the downstream applications of smart card chips are widely used. With domestically driven alternatives, there are many broad market spaces. Business analysis: The EEPROM business is developing steadily, and the three major product lines are rationally arranged: The company has a high degree of concentration in the EEPROM field and occupies a leading position in the field of mobile phone cameras.At the same time, around the advantages of EEPROM technology, the company horizontally expanded the smart card chip and voice coil motor drive chip business, and continued to expand and promote product upgrades.The company’s revenue has grown steadily, the gross profit performance has transformed the industry level, and its core competitiveness is expected. Fund-raising projects: upgrade, extend product line, improve the company’s competitiveness: the company plans to raise funds.2.7 billion US dollars for the development and industrialization of EEPROM-based plug-in memory chip technology, mixed-signal chip product technology upgrade and industrialization projects, and research and development center construction projects.The fundraising project helps the company to improve the company’s existing product line, improve the company’s product layout in the field of driver chips, and further 成都桑拿网 improve the company’s overall competitiveness and anti-risk capabilities. Estimate analysis: We predict that the net profit attributable to Juchen will be 1 in 19/20/21.02/1.23/1.5.2 billion. Corresponds to EPS 0 after release.85/1.01/1.26 yuan.Considering the comparable valuation of similar A-share IC design companies and the potential valuation premium of the science and technology board, we believe that a reasonable estimate range is 40-45 times dynamic PE in 19, corresponding to a market value of 40.92-46.40,000 yuan, the target price is 34-38 yuan. Risk reminders: the risk of technological upgrading, the risk of industry demand, the risk of intensified market competition leading to lower market prices, the risk of lowering industry profits, the risk of higher supplier concentration, and the risk of trade 武汉夜生活网 friction.